China Netcom Expands Its Broadband Wireless Network to Four New Provinces Using Alvarion and Siemens.

TEL-AVIV, Israel & BEIJING -- Leveraging its Licenses Awarded Earlier this Year, China Netcom Again Chooses Alvarion's WALKair(TM) Wireless Broadband Solution for Voice and Access Services

Alvarion Ltd. (NASDAQ:ALVR), the leading provider of wireless broadband solutions worldwide, today announced that China Netcom (CNC), China's second largest fixed telecommunications provider, is expanding its deployment of the Alvarion 3.5GHz Broadband Wireless solution to additional sites in four provinces with its strategic partner, Siemens Communication Networks Ltd., Beijing (SCNB), a joint venture of Siemens AG and Chinese enterprises. The sites targeted for deployment are in the provinces of Sichuan, Zhejiang, Jiangsu, and Hunan.

The decision follows CNC's successful deployment of Alvarion's WALKair(TM) solution in three provinces over the past year with SCNB, after securing part of 3.5GHz licenses awarded in the third round of China's frequency allocation process.

CNC plans to use the versatile WALKair1000 platform to provide small-and medium-sized customers with a variety of new services and applications. Offerings include a range of IP-based access services, including Voice over IP, high-speed Internet access and leased lines (E1 and Fractional E1). The operator will also incorporate these services as the basis for cost-effective hotspots, ISP backbone services, and to support its popular "Phone Supermarket" phone-booth service concept.

"CNC has emerged as one of China's most important wireless broadband players and a strategic customer for Alvarion," said Zvi Slonimsky, CEO of Alvarion. "Over the past two years, the success of the projects that we have completed for all four of China's major telcos proves that WALKair is a superb infrastructure solution for China, given its diverse and rugged terrain. We are confident that the strong partnership with SCNB plus competitive advantages help us win additional business as we participate in future tenders."

About China Netcom

China Netcom Group is a state-owned broadband telecommunications operator. Formed by the Chinese government in May 2002 as part of its plan to increase telecommunications competition, the enterprise is composed of three entities (China Telecom's operations in North China, Jitong Communications, a former data service operator, and the original Netcom, a broadband developer and wholesaler), and owns networks in 10 northern provinces (including Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Henan, and Shandong). China Netcom provides a full spectrum of services and solutions to meet China's broadband telecommunications needs including fixed-line voice, data, Internet, video and multimedia services, and is building a nationwide backbone. China Netcom's has assets of more than $24 billion and approximately 150,000 employees.

About SCNB (previously BISC)

Siemens Communication Networks Ltd., Beijing (SCNB) is a high-tech joint venture of Siemens and four Chinese enterprises formed from BISC (Beijing International Switching System Co., Ltd.), Siemens' earlier joint venture in China. With a well-established manufacturing, R&D and service base, SCNB provides full, end-to-end solutions for fixed telecommunications networks and is one of the few companies in China capable of providing full spectrum of network products. 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 solutions (Alvarion) for the fast developing China telecommunications market. For more information, visit www.bisc.com.cn

About Alvarion

With more than 2 million units deployed in 130 countries, Alvarion is the worldwide leader in wireless broadband providing systems to carriers, ISPs and private network operators. Leading the WiMAX revolution, Alvarion has the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands. Alvarion's products enable the delivery of business and residential broadband access, corporate VPNs, toll quality telephony, mobile base station feeding, Hotspot coverage extension, community interconnection, and public safety communications. Alvarion works with several top OEM providers and over 200 local partners to support its diverse global customer base in solving their last-mile challenges.

As a wireless broadband pioneer, Alvarion has been driving and delivering innovations for over 10 years from core technology developments to creating and promoting industry standards. Leveraging its key roles in the IEEE and HiperMAN standards committees and experience deploying OFDM-based systems, the company's prominent work in the WiMAX Forum(TM) is focused on increasing widespread adoption of standards-based products in the wireless broadband market.

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

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