China's First Commercial Broadband Wireless Network Launched Through Joint Datang - Alvarion Effort.

Business Editors/High-Tech Writers

TEL-AVIV, Israel--(BUSINESS WIRE)--Feb. 12, 2002

Alvarion Ltd.(NASDAQ:ALVR):

First Milestone of Multi-Million Dollar Project Achieved;

Network in the 3.5 GHz Band Deployed For Broadband ISP San Jiang

In Wuhan, Central China's Largest City

Alvarion-Datang Partnership Positioned

For Additional Wins Throughout China

Alvarion Ltd. (NASDAQ: ALVR), a leading provider of Broadband Wireless Access (BWA) solutions, and Datang Telecom Technology Co. Ltd., today announced the completion of China's first commercial BWA network in the 3.5 GHz licensed band.

The first milestone of a multi-million dollar project, the two companies have deployed the advanced BWA network, based on the jointly developed AIRsun 2000 product, for San Jiang Aerospace Network & Communication Co. Ltd., a broadband ISP subsidiary of China's Ministry of Aerospace.

San Jiang will use the network to provide advanced broadband Internet access services, combined with Value-Added IP services, in Wuhan, the capital of the Hubei Province. With a population of 7.3 million, Wuhan is a major financial and cultural center whose businesses and citizens look increasingly to broadband services such as Internet connection, in addition to advanced IP-centric data services. Wuhan, one of five Chinese cities which received 3.5 GHz license allocations in the last quarter of 2001, is only the first Chinese city in which Datang and Alvarion won new customers; the partnership has also won additional tenders in other cities with other vendors. An additional 32 cities in China are expected to receive license allocations during the second quarter of 2002.

Commenting on the news, Jia Hai Ying, CEO of Datang Telecom Technology, said, "We are proud to become the first to deploy state-of-the-art broadband wireless technology in China, an important first step that we believe will lead to significant additional sales in the vast Chinese marketplace. As China integrates into the world economy, demand for both Internet access and advanced telecom services are on the upswing. Alvarion's exceptional technology is ideal for these markets, enabling Chinese operators to install new infrastructure rapidly and to offer cutting-edge services at reasonable prices. We believe that the success of this first deployment, together with the positive results of ongoing field trials, position us favorably to win new customers in additional cities."

Zvi Slonimsky, CEO of Alvarion, added, "We are pleased to record this early success in China. This deployment is the first indication of the huge potential of the Chinese market for Alvarion and its partner Datang. Our partnership with Datang, which combines our wireless expertise with Datang's technological know-how and deep understanding of China's telecommunications market, is proving to be a winning contender."

About Sanjiang Aerospace Network & Communication Co., Ltd.

China's Sanjiang Space Group, one of China's 500 biggest industrial enterprises, is engaged in scientific research, production, marketing, I/E business and capital management. It is composed of 18 kernel and closed layer enterprises, three joint ventures, and 6 tertiary companies, and employs 15,300 workers. The group's total assets are 4.1 billion RMB.

One of the Company's subsidiaries provides Internet and IT Services in Wuhan City, the capital of the Hubei Province. The division provides users state of the art broadband technologies to offer Internet and IP value added services to Wuhan City's 7.3 million people.

About Datang Telecom Technology Co. Ltd.

Established in August 1998 and traded on the Shanghai Stock Exchange, Datang Telecom Technology Co. Ltd. is the former China Academy of Telecommunications Technology, which converted to a stock company after forty-three years of operations. Datang provides different services for the largest telecommunications operators in China and is one of China's largest local telecommunications integrators and equipment suppliers. With over 4,600 employees, Datang has research centers, five subsidiary companies, four stock companies and two share companies, as well as a company that has direct ownership relations with other companies and institutions in the Ministry of Information Industry of China.

About Alvarion

Alvarion is a powerhouse of point-to-multipoint broadband wireless access (BWA) solutions for telecom carriers, service providers, and Enterprises worldwide. Alvarion's systems are used to provide Internet access and voice and data services for subscribers in the last mile, as well as for cellular network feeding, building-to-building connectivity, and wireless local area networks (LANs).

Alvarion, which was formed by the merger of BreezeCOM and Floware, offers the broadest range of BWA solutions by market segment and frequency band. Its solutions are designed to address all carriers' and service providers' business models. With the combined market experience of its founding companies, a strong customer base, diversified distribution channels and field-proven deployments, Alvarion is the leading BWA pure-play provider for all types of end-users, from residential subscribers to business customers.

For more information, please visit Alvarion's World Wide Web site at http://www.alvarion.com.

This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in filings with the Securities and Exchange Commission.

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