Ceragon Networks Signs Multi-Year Frame Agreement With Cellcom, a BellSouth Operation.

Business Editors/High-Tech Writers

Ceragon Networks(TM) Ltd. (Nasdaq:CRNT), www.ceragon.com, a global provider of high-capacity broadband wireless systems, today announced that it has signed a multi-year contract with Cellcom, Israel's largest cellular operator serving a nation-wide subscriber base of 2.3 million.

Since placing its initial order, Cellcom is commercially deploying Ceragon's high-capacity wireless systems. The FibeAir(TM) product family provides high capacity connections across Cellcom's cellular network. Ceragon's wireless ring solutions provide connectivity between cellular base stations and the core network infrastructure at rates of 155 and 311 Mbps.

"At Cellcom, we're deploying Ceragon's broadband wireless systems to expand and improve our existing transmission network," said Lipa Ogman, CTO and head of technology division, Cellcom. "Implementing FibeAir into our network enables us to provide improved and more reliable services to our customers."

Owned by BellSouth, the Safra Group and Discount Investments Ltd., Cellcom is cash flow positive and has been profitable since 1997, reaching an annual net income growth of 28% in the first quarter of 2002.

"Our strong focus on meeting the global market demand for high-capacity cellular backhaul has already earned us major wins this year in Latin America, Asia and Europe," said Shraga Katz, president and CEO, Ceragon Networks Ltd. "The Cellcom agreement demonstrates, once again, that cellular operators who demand the highest levels of network reliability choose Ceragon's FibeAir product family.

Katz continued, "At Ceragon, we are executing well on our strategy to be a leading world-wide supplier of high capacity backhaul equipment to cellular operators."

The Cellcom agreement follows Ceragon's recent announcements of multi-year cellular backhaul frame agreements with Svenska UMTS Nat AB, a joint venture between Telia and Tele2 in Sweden, and with SONOFON in Denmark.

Ceragon's modularly designed FibeAir product family is particularly well suited to evolving networks with growing numbers of subscribers. The ability to deploy intelligent networking capabilities over multiple capacities, frequencies, protocols and modulation schemes is engineered into every FibeAir system. This provides cellular operators with a broad range of functionality for a better return on their network investment.

About Ceragon Networks

Ceragon Networks Ltd. (Nasdaq:CRNT), a pacesetter in broadband wireless networking systems, enables the rapid and cost-effective deployment of high-capacity network connectivity. Ceragon's FibeAir(TM) product family was uniquely designed for cellular operators, enterprises and communications service providers to progressively build networks to meet the growing demand for value-added broadband services. The modular FibeAir system operates across multiple frequencies from 7 to 38 GHz and supports integrated high-capacity services over IP, SONET/SDH and ATM networks. Ceragon's equipment complies with North American and international standards and is installed with over 100 customers in more than 35 countries. Ceragon was the first fixed wireless technology provider to break the 155 Mbps capacity barrier in high-frequency bands and the first to commercially deploy a wireless 311 Mbps system. Recently, Ceragon announced another industry first -- a high capacity fixed wireless system with built-in SONET/SDH add-drop multiplexer (ADM). More information is available at www.ceragon.com.

About Cellcom

Owned by BellSouth Corp., the Safra Group and Israel Discount Investments, Cellcom's mission is to be the leading Israeli provider of advanced, high-quality communications services. Cellcom promises -- and delivers. Cellcom is entirely reliable in the quality of its products, its availability to the customer, and the efficiency of its service. Thus Cellcom has earned the trust of its customers and meets the highest international standards for quality. As Cellcom enters domestic communications, the company has established the largest independent fiber-optic SDH network in Israel. In addition, the company plans to launch Internet services, including a portal and access services.

This press release may contain statements concerning Ceragon's future prospects that are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections that involve a number of risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially from forecasts and estimates include: Ceragon's limited operating history and history of losses; Ceragon's dependence on a limited number of key customers, independent manufacturers and suppliers; and the demand for Ceragon's products and technology. These risks and uncertainties, as well as others, are discussed in greater detail in Ceragon's Annual Report on Form 20-F and Ceragon's other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and Ceragon undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made.

Note to Editors: Ceragon Networks(TM), Ceragon(TM), FibeAir(TM), ConfigAir(TM), CeraView(TM), CeraMon(TM), EtherAir(TM), QuickAir(TM), QuickAir Partner Program(TM), QuickAir Partner Certification Program(TM), QuickAir Partner Zone(TM), EncryptAir(TM) and Microwave Fiber(TM) are trademarks of Ceragon Networks Ltd.