Tadiran delivers first wireless local loop system in U.S.

CLEARWATER, Fla.--(BUSINESS WIRE)--Aug. 15, 1996--Tadiran Telecommunications Ltd. (NASDAQ: TTELF) today announced MultiGain Wireless (MGW), the first wireless local loop system to be made available in the United States.

Tadiran's new wireless system delivers all the basic and enhanced voice and data services of today's wired POTS network with none of the costs for maintenance of copper or fiber optic connections. Installation of the entire MultiGain Wireless system into a neighborhood can be accomplished in a few days.

Tadiran's MultiGain Wireless local loop system provides local and long distance carriers, Regional Bell Operating Companies (RBOCs) and Competitive Access Providers (CAPS), with a state-of-the-art, cost-effective telecommunications alternative to conventional copper plants. The MGW delivers an exceptionally clear and secure wireless telephone service that can be installed practically anywhere from new housing developments, where no current copper infrastructure is present, to remote communities, where cable would be impossible or extremely expensive to install. In addition, since there are no physical transmission lines to the subscriber, interruption of service due to cable failure is nearly impossible.

"Since copper connectivity is not needed, Tadiran's MultiGain Wireless is the perfect communications solution in areas throughout the U.S. where the existing feeder or distribution cables are fully loaded, of questionable quality, or where the repair of faults in existing cable is simply impractical," said Mark Vida, Vice President and General Manager of Tadiran Telecommunications Network Systems in Clearwater, Florida. "MGW is also an ideal solution for applications that require quick, but temporary installations -- such as providing service during major public events or natural disasters, where it is not feasible to lay copper cables."

Spread Spectrum Frequency Hopping

Through the use of Tadiran's spread spectrum frequency hopping digital radio technology, MGW provides subscribers with the same Toll Quality that they are used to with copper lines and allows for seamless connectivity to all the local switch services they may be currently using -- from POTS to ISDN. By constantly switching frequencies within its operating band, the MGW avoids interference to a subscriber's call. In addition, the MGW Radio Port Unit may use either omnidirectional or sectorized antennas, allowing for flexible radio coverage and optimal deployment. The use of the unlicensed ISM frequency band saves the operator the need to pay for costly frequency allocation.

Subscriber Benefits

Tadiran's MultiGain Wireless system provides subscribers with:

- Toll Quality voice, data, facsimile, modem, BR-ISDN, CLASS and

CENTREX communications not available with cellular service;

- Complete, seamless connectivity with all current communications

from POTS to ISDN;

- An extremely cost-effective wireless access solution;

- Secure communications through its frequency hopping features; and

- Easy and quick installation and maintenance, minimizing subscriber

downtime.

MultiGain Wireless Architecture

Three basic units are used to bring wireless local loop telephone service to the subscriber.

1. The Radio Port Control Unit (RPCU) is the interface between the central office and the Radio Port Units. It may operate over digital lines or be combined with the Analog Interface Unit (AIU) to provide the interface over analog lines.

2. The Radio Port Unit (RPU) provides the radio links between the local switch and the Fixed Access Unit located at the subscriber's home or business.

3. The Fixed Access Unit (FAU) is installed at the subscriber's location and completes the wireless radio link to the RPU. The FAU also provides a standard wired interface to each customer for a variety of equipment, such as telephone, facsimile, or modem. These wired devices can then send information - voice or data - over the wireless system.

Customer Record

The MGW system is operating successfully in numerous countries around the world. Domestic trials are currently being performed with U.S. West, and other selected customers in the United States.

Pricing and Availability

The Tadiran MultiGain Wireless system is available and is priced between $500 to $1,500 per line, depending on the number of subscribers and the terrain of the given installation. -0-

Tadiran Telecommunications, Ltd. (NASDAQ: TTELF) designs, develops, manufactures and markets a wide range of sophisticated wired and wireless telecommunications equipment, such as Wireless Local Loop products, Digital Cross-Connect systems, Digital Pair Gain systems, Multiplexers, ADPCM transcoders, PBX and Key systems, ACD systems, Computer Telephony Integration, and Wireless PBX. Tadiran Telecommunications, Ltd. is a subsidiary of Tadiran Ltd. (NYSE:TAD).

T::DAX is a trademark of Tadiran Telecommunications, Ltd.

CONTACT: Tom O'Boyle

Tadiran Telecommunications, Inc.

Tadiran Electronic Industries, Inc.

[phone]

or

Jack Varley/Peter Gorman

Copithorne & Bellows

[phone]

[e-mail]