New 3.5GHz License Holder China Communication Systems Completes Successful Equipment Trial With Airspan Networks.

Business Editors

SUNRISE, Fla.--(BUSINESS WIRE)--Sept. 11, 2001

Airspan Networks, Inc. (Nasdaq: AIRN), a leading worldwide provider of broadband fixed wireless DSL networks, announced today successful equipment trial completion of its AS4000 wireless DSL system with China Communication Systems, one of only two companies recently awarded a 3.5GHz license by the China Ministry of Information Industry (MII) to provide broadband fixed wireless services in five initial cities of Nanjing, Qingdao, Xiamen, Wuhan and Chonqing.

Four additional companies were awarded licenses, but their coverage does not include all five cities. The MII has announced that it will complete the nationwide allocation of 3.5GHz spectrum by year's end.

Airspan's China Managing Director, Jian Qiu, said the successful trial points to the beginning of an unprecedented broadband infrastructure buildup in China. Mr. Qiu also added "although China's broadband growth is still in its infancy, and despite China Telecom's market dominance, new operators like China Communication Systems can take advantage of the flexibility of our product to deploy fixed wireless services quickly and in cost-effective ways that do not require vast amounts of start-up capital."

According to the China Broadband Industry 2000 Report, the country will invest more than $2.4 billion to develop its broadband infrastructure during the next five years.

An August 2001 U.S. Bancorp Piper Jaffray Equity Research report indicated broadband fixed wireless technologies "have the most immediate near-term opportunities in China." According to the report, "China has some of the most modern fiber infrastructure alongside some of the most outdated copper plant - resulting in a missing access layer to the end user."

A March 2001 EETimes article confirmed the Piper Jaffray market comments on access issues in China. The article indicated that at the end of 2000, 77 percent of China's 22.5 million Internet subscribers were using slow, dial-up connections.

"There's no question that the Chinese fixed wireless market has great business potential," added Qiu. "Our challenge is to provide the cutting-edge technology that will allow our customers to succeed in this dynamic market which is hungry for reliable, cost-effective, high-speed access to the unlimited, global resources of the Internet."

In addition to China Communication Systems, other telecom service providers in China have shown keen interest in Airspan's AS4000 wireless DSL system, which offers point-to-multipoint delivery of a wide range of telecommunication services including premium telephony, high-speed packet, leased-line data and ISDN links. The system has coverage of up to 25km from base with quality of service exceeding traditional copper wire systems. It has frequencies ranging from 900MHz to 4 GHz.

About Airspan Networks

Airspan provides wireless DSL systems and solutions to operators around the world with licenses in frequency bands between 900 MHz to 4 GHz, including both PCS and MMDS. The company has deployments with more than 56 operators in more than 40 countries. Airspan's systems are based on radio technology that delivers excellent area coverage, high security and resistance to fading. Airspan's systems can be deployed rapidly and cost effectively, providing an attractive alternative to traditional wired communications networks. Airspan also offers radio planning, network installation, integration, training and support services to facilitate the deployment and operation of its systems. More information on Airspan can be found at http://www.airspan.com

This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. These statements are only predictions and actual results could differ materially from those anticipated in these statements based on those factors identified in the company's filings with the SEC. The words "believe", "expect", "intend", "anticipate", variations of such words and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward looking. Forward-looking statements in this press release include, without limitation, the statements that the telecom market in China is rapidly growing, that telecom service providers in China are keen on Airspan's wireless solution, that the wireless market in China will offer a great business potential and any implication that the successful trial with China Communication Systems will position the company to capture a large share of the Chinese fixed wireless market. These statements are not guaranties of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.