Gorizont-RT Deploying Alvarion GSM Network in Russia; Deployments Planned for Lensk, Ajkhal, and Udachny in the Republic of Sakha -Yakutia-.

TEL AVIV, Israel -- Alvarion Ltd. (NASDAQ:ALVR), the leading provider worldwide for wireless broadband solutions and specialized mobile networks for hard to serve areas, today announced that prior to the finalization of the acquisition of interWAVE Communications International, Ltd, the company received its first order from its local partner and integrator, STS, to roll out a GSM network in Russia for Gorizont-RT, the telecom operator in the Republic of Sakha, Russia. The network has been deployed and is operational.

Sakha is the largest and most remote of the autonomous republics in the Russian Federation and was previously called Yakutia. Spanning three time zones and with 40 percent of its territory above the Arctic Circle, Sakha's population centers are dispersed across a wide geographic area. The Wave Exchange II MSC, Ultrawave BTS and Ultrawave BSC are being deployed in Gorizont-RT's network to provide mobile services in the city of Lensk. Following commercial launch, STS will deploy the network for Gorizont in the cities of Ajkhal and Udachny, in the western reaches of Sakha.

This initial deployment will provide mobile switching, short message service, voicemail, and authentication center services to Lensk's subscribers, and then later to subscribers in Ajkhal and Udachny. The network will be GPRS-ready upon deployment, thereby enabling seamless and rapid upgrades after commercial launch.

This GSM network equipment is robust enough for Russia's harsh climate. Its economics, ease of deployment and operation enable efficient and effective mobile wireless communications in remote areas. Further down the line, the equipment's scalability will allow STS and Gorizont-RT to easily expand the network with minimal additional capital investment.

"This deal reflects Alvarion's strategy regarding the merger with interWAVE. As the perfect alternative to traditional wired telephony, this GSM solution is ideal for the remote areas of Russia," said Zvi Slonimsky, CEO of Alvarion. "We look forward to similar sales of these economically compelling networks and are optimistic about the future as Alvarion strengthens its position as we lead the market into the world of mobile broadband, and mobile WiMAX, in particular."

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, and also in extending coverage of GSM and CDMA mobile networks to developing countries and other hard to serve areas.

Leading the WiMAX revolution, Alvarion has the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands with both fixed and mobile solutions. 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, public safety communications, and mobile voice and data. Alvarion works with several global OEM providers and more than 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 more than ten 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 is focused on increasing widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to mobile WiMAX solutions.

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

This press release contains 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 in ability 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.

You may request Alvarion's future press releases or a complete Investor Kit by contacting Carmen Deville, Investor Relations: [e-mail] or 1-760-517-3188.