O2 Ireland and Siemens Trial Alvarion's WiMAX-Ready Platform in Gleann Cholm Cille, Donegal; Cellular Operator Uses BreezeMAX to Overcome Difficult Irish Terrain.

TEL-AVIV, Israel -- Alvarion Ltd. (NASDAQ: ALVR), the world's leading provider of wireless broadband solutions and supplier of specialized mobile systems, today announced that O2 plc, a leading mobile operator, and Siemens successfully completed a test of its BreezeMAX(TM) 3500, a WiMAX-ready solution. The system was used to provide broadband services to households and small businesses in Gleann Cholm Cille in Donegal, Ireland. The trial was conducted over the span of a four month period and concluded in early 2005.

"After trialing Alvarion's WiMAX-ready system, we found its technology interesting as a natural extension to the wireless LAN hotspots we have deployed across Ireland to date," said Orlagh Nevin, Head of Business Services for O2 Ireland. "O2's approach is to ensure that we keep up to date with new and emerging technologies and by conducting trials such as the WiMAX trial in Gleann Cholm Cille, we get real information and feedback. Having conducted trials on a number of technologies, the results from the trial in Gleann Cholm Cille showed that WiMAX was a viable solution for delivering broadband services to the rural areas of Ireland."

With this BreezeMAX trial, Gleann Cholm Cille in Donegal joined selected European locations as pioneers in experiencing first-hand the benefits of WiMAX's quality of service (QoS), wide coverage and next generation non-line-of-sight (NLOS) performance. The Gleann Cholm Cille valley was selected as the location due to its challenging terrain and substantial distance from the nearest high-capacity network. BreezeMAX systems are operational in other Western European countries, including France and Spain.

"BreezeMAX's non-line-of-sight capabilities facilitate almost universal accessibility to customers in a large base station area, making it an efficient and cost effective technology to roll out," commented Brendan Martin, of Siemens. "It is exciting to take a major role in the trials and eventual deployments of WiMAX technology across Europe."

BreezeMAX is a third-generation OFDM platform with advanced NLOS functionality and is designed for operators to offer broadband IP-based voice and data services. In addition, it enables carriers to evolve their networks to industry standard solutions with all the benefits of vendor interoperability. Its carrier-class design supports high QoS and broadband speeds to enable carriers to offer both data and toll-quality voice to thousands of subscribers in a single cell.

"As expected, responses have been positive regarding the technology, and especially optimistic about the business case and overall service provisioning," said Zvi Slonimsky, CEO of Alvarion. "Deployment of BreezeMAX systems for fixed broadband access today speaks well to Alvarion's clear roadmap and vision. There is no doubt that WiMAX is the future for providing broadband in many areas in Ireland and throughout the world."

About O2 plc

O2 plc has 100% ownership of mobile network operators in three countries - the UK, Germany and Ireland. All of these businesses are branded as 'O2'. The company is a founding member of Starmap Mobile Alliance, has operations on the Isle of Man (Manx Telecom) and owns O2 Airwave - an advanced, digital emergency communications service. In addition, O2 has established the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany respectively. For more information, visit http://www.o2.com.

About Siemens

Siemens Communications is one of the largest players in the global telecommunications industry. Siemens is the only provider in the market that offers its customers a full-range portfolio, from devices for end users to complex network infrastructures for enterprises and carriers as well as related services. Siemens Communications is the world's innovation leader in convergent technologies, products and services for wireless, fixed and enterprise networks. For more information, visit http://www.siemens.com/communications.

About Alvarion

With more than 2 million units deployed in 150 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 10 years from core technology developments to creating and promoting industry standards. Leveraging its key roles in the IEEE and HiperMAN standards committees and experience in 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.

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