China Netcom Begins Deployment of Alvarion/BISC 3.5GHz Broadband Wireless Solution.

Business Editors/High-Tech Writers

TEL-AVIV, Israel and BEIJING--(BUSINESS WIRE)--Oct. 21, 2003

Alvarion Ltd. (NASDAQ:ALVR), and its strategic partner Beijing International Switching System Corporation Ltd. (BISC), a joint venture between Siemens AG and Chinese enterprises, today announced that the Alvarion/BISC 3.5GHz Broadband Wireless solution has been chosen by China Netcom for a multi-city deployment. The first advanced WALKair(TM) networks are being deployed in 8 cities in the Sichuan province, as well as Wuxi, the industrial center of the wealthy Jiangsu province, and in Ningpo of the Zhejiang province.

Norbert Muhrer, President and CEO of BISC, said, "We are proud that China Netcom, a major Chinese operator and one of our most important customers, has selected the BISC/Alvarion offering. China Netcom appreciate the technology and market competitiveness of Alvarion's WALKair(TM) line of products. The BISC/Alvarion BWA solution lets them expand their business with sensitive investment steps. Our growing success confirms that our combined offering features the right combination of technology, price-performance, and local support - a total solution that will allow them to quickly establish profitable broadband access services. As we begin our cooperation with China Netcom, through our strong relationship with Alvarion, we feel better-positioned than ever for success in additional tenders."

Zvi Slonimsky, CEO of Alvarion, added, "We are very pleased that our solution has been chosen by another prestigious Chinese operator. Networks based on our WALKair(TM) product are being deployed in an additional 10 locations within just a few months from the awarding of spectrum licenses. Although the initial deployments are small, our selection positions us to benefit from the future potential of this important market. Together with our strategic partner BISC, we are committed to helping China Netcom achieve its goals in each of these cities."

About China Netcom

A major state-owned enterprise, China Netcom Corporation Ltd. was co-established by the local telecom companies in 10 provinces, autonomous regions or municipalities directly under the central government, including Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Henan, and Shandong. China Netcom (Holding) Co.,Ltd. other corporations include South-eastern Communications Corp., China Network Communications (holding) Co.,Ltd. Jitong Communications Limited Liability Company and other holding and sharing holding companies.

With fixed assets of more than 220 billion RMB, China Netcom Corporation Ltd provides a variety of domestic and international fixed telecom network services and facilities, including wireless local loop, telecom network-based voice, data, image and multimedia communications and information services, as well as corresponding system integration and technical development. It also promotes domestic and overseas investment and financing opportunities, as well as other operations approved by the state.

About BISC (Beijing International Switching System Corporation Ltd)

Beijing International Switching System Corporation Limited (BISC) is a high-tech joint venture between SIEMENS and Chinese enterprises. The company focuses on the marketing and manufacturing of EWSD switching systems, broadband access product (Xpresslink), Next Generation Network solutions (SURPASS) for convergence of voice and data services, IP Routing (Juniper) and Broadband Wireless Access (Alvarion) for the fast developing China telecommunications market. BISC had been formally recognized as one of the 500 Largest Industry Enterprises in China, Top 100 Enterprises of Electronic Industry, and Top Ten Foreign Invested Industrial Enterprises of the Beijing Municipality.

For more information visit http://www.bisc.com.cn/.

About Alvarion

Alvarion is dedicated to delivering seamless wireless broadband networking infrastructure to carriers, ISPs and private network operators, in order to leverage their broadband opportunities into sustainable profits. Alvarion offers premier wireless broadband solutions for access in the last mile, backhauling connection to the backbone and private network connectivity. Featuring the industry's most extensive range of products and international support, Alvarion is a pioneering leader of the converged wireless broadband network. With over 1.5 million units deployed in 120 countries worldwide, Alvarion provides secure rich-media networks for business or residential Internet access, corporate VPNs, cellular base station feeding, community interconnection, public safety connectivity and extended Hotspots.

Having recently acquired InnoWave's wideband access portfolio and expertise, Alvarion provides a complete wireless solution that supports a wide range of frequency bands, customer profiles and service types.

For more information, visit Alvarion's World Wide Web site at 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.

Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web-sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission which this press release will be a part of.

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