China Telecom Chooses Alvarion/BISC Broadband Wireless Solution For Commercial 3.5GHz Deployment in Shenyang.

Business Editors/High-Tech Writers

TEL-AVIV, Israel--(BUSINESS WIRE)--April 3, 2003

Alvarion/BISC Positioned Favorably For Additional Wins in China

Alvarion Ltd. (NASDAQ:ALVR) and its new strategic partner Beijing International Switching System Corporation (BISC), a joint venture between Siemens AG and Chinese enterprises, today announced that China Telecom has chosen the Alvarion/BISC Broadband Wireless solution for its first commercial 3.5 GHz broadband wireless access network deployment.

The network will be installed in Shenyang, a city of 4.5 million inhabitants and the capital of the Liaoning region. Shenyang is one of 32 Chinese cities in which operators have recently received licenses to operate broadband wireless networks in the 3.5 GHz band, and the first to select a vendor and to begin network deployment. Alvarion's advanced WALKair(TM) network will be used to support advanced voice and data access services.

Norbert Muhrer, President and CEO of BISC, said, "We are very excited to have achieved this important win, the first fruits of our partnership with Alvarion. WALKair's flexible and powerful technology was critical for clinching the deal, and will continue to give us an important advantage as we compete to supply our solution to additional cities and operators that have been allocated 3.5GHz and 26GHz licenses."

Zvi Slonimsky, CEO of Alvarion, added, "We are proud to have been chosen by one of China's most prestigious operators for this major deployment. It is the first order given to any vendor in the new round of 94 licences which were allocated at the end of February 2003 by the Chinese authorities. The win confirms the value of our partnership with BISC, which is a major player in the emerging Chinese telecommunications market as well as the superiority of our product. As we begin deploying China Telecom's first commercial Broadband Wireless network, we feel well-positioned for additional wins, and look forward to taking full advantage of opportunities being created through China's frequency allocation process."

About China Telecom

China Telecom Corporation is a state-owned telecommunications enterprise formed as a result of the State telecom structural reform plan. Established in May 2002, it is made up of 21 businesses divided into Northern and Southern divisions. China Telecom holds 70% of the national trunk line transmission network owned by the former China Telecom, and is allowed to build and operate local telephone networks in ten northern provinces. Currently, China Telecom operates domestic and international fixed line and WLL networks, providing network-based voice, data, video, multimedia and information services, as well as other professional services throughout China.

For more information visit http://chinatelecom.com.cn

About BISC (Beijing International Switching System Corporation)

Beijing International Switching System Corporation Limited (BISC) is a high-tech joint venture between SIEMENS AG and Chinese enterprises. The company focuses on the manufacturing and marketing of EWSD switching systems and data network solutions, broadband access product (Xpresslink), Next Generation Network solutions (SURPASS) for convergence of voice and data services, IP Routing and system integration solutions 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 about BISC visit http://www.bisc.com.cn

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, 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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