China Unicom to Deploy Alvarion Broadband Wireless Solutions in Seven Chinese Cities; Secured Through Alvarion's Partners Datang and BISC.

Business Editors

TEL AVIV, Israel--(BUSINESS WIRE)--July 23, 2003

Alvarion Ltd. (NASDAQ:ALVR), the leading provider of wireless broadband solutions worldwide, today announced that its market-leading wireless broadband solutions have been selected by China Unicom Ltd. (NYSE:CHU), a large telecom operator and the second largest cellular communications operator in China, as the basis for high-performance Broadband Wireless Access (BWA) networks to be deployed in seven Chinese cities by Alvarion's local partners Datang and BISC.

China Unicom found Alvarion's WALKair(TM) 1000 Broadband Multiservice Platform to be perfectly-suited for the demands of its UniONE broadband service since the WALKair(TM) supports TDM legacy voice, data and multimedia services including videoconferencing. Due to the sheer size of the Chinese market, these installations have the potential of being one of the largest BWA deployments in the world

"China has long represented a significant potential opportunity for Alvarion. Now, as Broadband momentum within the region grows, the importance of Chinese market for Alvarion grows as well," said Zvi Slonimsky, CEO of Alvarion. "The selection of our solutions over those of our competitors is an important validation of our technology. Having won tenders with China's two largest mobile operators, we have established clear leadership in this strategic market and, through our excellent partnerships we are well-positioned to expand our presence throughout the region."

China Unicom is the second largest mobile carrier in China. Recognizing the potential to leverage its vast operations as a base for launching complementary Broadband Internet Access services, China Unicom secured licenses to operate 3.5GHz networks across the country, and initiated a vendor selection process. After extensive technical evaluations and negotiations, China Unicom selected Alvarion-based solutions for BWA network deployments in seven different cities of Tianjin, Xining, Huhehaote, Nanning, Dalian, Changsha, and Zhengzhou.

"Like so many developing regions in the world, China lacks the wireline infrastructure needed to meet the growing demand for Broadband," continued Mr. Slonimsky. "Economical and easy to install, BWA is the ideal high-performance solution to address the needs of these regions. Deployment is particularly inexpensive for mobile carriers, who use existing cellular towers as a platform for BWA base stations. This makes it extremely cost-effective for them to launch revenue-generating Internet access services.

"We believe that BWA can become an important part of China's evolving broadband infrastructure. With the right solutions, proven partners, and established market leadership, we believe that China will become a major driver of Alvarion's future growth."

About China Unicom

With more than 59 million cellular subscribers as of December 31, 2002, China United Telecommunications Corporation ("China Unicom") is one of Mainland China's two leading cellular communications operators. Established in 1994, China Unicom operates GSM and CDMA networks in 21 provinces, municipalities and autonomous regions throughout China. It also operates GSM international roaming services with 118 operators in 67 countries and regions, and CDMA international roaming services with 7 operators in 7 countries and regions. In addition, China Unicom provides IP telephony and other services in all of Mainland China's 337 regions.

China Unicom's shares are listed on the New York Stock Exchange, the Stock Exchange of Hong Kong, and China's domestic stock exchange. Its major shareholder is the Unicom Group, which holds approximately 77% of the shares of the Company indirectly through subsidiaries. The remaining shares are held by the public. For more information, visit www.chinaunicom.com.hk

About BISC

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 www.bisc.com.cn

About Datang

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. For more information visit www.catt.ac.cn/english/

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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