LGC Wireless Acquires Alvarion's Cellular Mobile Unit.

Base Station and Mobile Network Technology and Products Expand LGC Markets; Wireless Industry Leader to Run New Division

SAN JOSE, Calif. -- LGC Wireless, Inc., the leader in advanced in-building wireless systems, today announced its acquisition of the assets of the Cellular Mobile Unit ("CMU") from Alvarion Ltd. (NASDAQ:ALVR) in exchange for $15 million in notes payable, $7 million of which are convertible into common stock of LGC. The CMU, which Alvarion acquired from Interwave Wireless, Inc. in 2004, provides base station and core wireless network equipment primarily to wireless operators, system integrators, and government organizations worldwide. LGC is acquiring technology that will allow it to develop turnkey capacity and coverage solutions for carriers and organizations in facilities of any size.

"As carriers and organizations try to meet user demand for reliable cellular coverage, there will be a huge market for companies that can supply scalable and easily deployed wireless solutions that have IP as well as traditional circuit backhaul connectivity," said Ian Sugarbroad, president and CEO of LGC Wireless. "This acquisition allows us to serve that market with a highly advanced solution that includes pico base stations and soft switching as well as distributed antenna systems, delivering turnkey, high performance networks that are right-sized for any venue."

Under the terms of the deal, which was completed on November 21, 2006, LGC Wireless acquired technology, patents, manufacturing rights, inventory, equipment and receivables.

Industry Leader Heads New LGC Division

LGC will manage the assets as its new Wireless Systems organization, and has hired industry veteran John R. O'Connell as executive vice president and general manager.

O'Connell was formerly CEO of both Kineto Wireless and Vyyo and has had a 25-year career founding, managing and growing companies in the wireless infrastructure space, as well as holding the position of senior vice president and general manager in charge of Nortel's GSM division prior to coming to the Silicon Valley.

Under O'Connell's leadership, LGC will maintain the group's existing office facilities in Mountain View, California and Shenzhen, China. LGC has extended offers of employment to substantially all current R&D, sales and support, administration and manufacturing employees in the business unit, including more than 40 wireless engineers. The CMU generated approximately $21 million in revenues for the nine months ended September 30, 2006 as part of Alvarion.

"Mobile operators and enterprises alike are investing in wireless networks to address the huge demand for reliable in-building coverage and capacity, but to date the solutions have been fragmented and have shared nothing in common" said O'Connell. "LGC has become the world leader in advanced in-building coverage systems, and we are looking forward to extending that leadership by improving the economics and integration of in-building 3GSM, CDMA, Wi-Fi and future technologies."

The acquisition brings LGC Wireless a host of new customers as well as closer relationships with existing customers. For example, the CMU was the base station supplier for the fleet-wide shipboard cellular system deployments at Carnival Cruise Lines, which also feature LGC's distributed antenna systems. (See Carnival Cruise Lines Fleetwide Cell Phone Implementation Continues with LGC Wireless, released September 26, 2006.)

"There is a high-rise building boom taking place around the world, with hundreds of large projects already under construction in Asia, the Middle East, Europe and the United States," said Mike Frausing, executive vice president and chief sales and marketing officer at LGC Wireless. "All of these properties will require pervasive and reliable wireless capacity and coverage, and this acquisition gives us exactly the right technology to offer complete in-building solutions."

About LGC Wireless

With more than 5,500 deployments worldwide, LGC Wireless is the leader in extending scalable, high-performance wireless coverage and capacity inside buildings and public facilities. LGC's products offer low-cost installation, end-to-end monitoring and management, and easy integration of emerging wireless technologies. LGC Wireless is based in San Jose, California USA and is privately held. For more information, please visit www.lgcwireless.com.