Telmex, Mexico's Main Telecommunications Service Provider, Has Placed Additional Orders For Alvarion's Wireless Systems In The 3.5 GHz Band.

Business Editors

TEL AVIV, Israel--(BUSINESS WIRE)--May 19, 2003

Alvarion Will Deliver Several Thousand

MGW Voice and eMGW Wireless-DSL Lines to Rural and Suburban Regions

Alvarion Ltd. (NASDAQ: ALVR), a leading provider of Broadband Wireless solutions, announced today that Telmex, the main telecommunications service provider in Mexico, has placed a new order for Alvarion (InnoWave) wireless systems operating in the 3.5GHz band.

Under the framework of this new order, Alvarion will expand Telmex's wireless local loop network with both MGW copper-like lines for voice, fax, and dial-up Internet access services, and eMGW wireless DSL lines for voice and broadband Internet access.

Commenting on the news a high executive of Telmex, said, "Serving customers with consistently high-quality voice, fax, and voice band data, our extensive MGW network has helped us fulfill our commitment to extend basic service coverage to rural and suburban areas. Now, with demand for Internet access growing, we are taking advantage of the eMGW Wireless DSL technology to bring affordable broadband services to areas where the existing infrastructure cannot support wireline DSL. We believe this is an important step that will contribute to Mexico's economic and cultural development while securing our own revenue base."

Tzvika Friedman, President and COO of Alvarion, added, "We are pleased that Telmex has received such excellent value from our broadband products, and look forward to continued close cooperation. The confidence of customers like Telmex expressed in InnoWave's product lines was an important factor in our decision to acquire the company, and will strengthen our position as the Number One leader and consolidator of the Broadband Wireless market."

About TELMEX

TELMEX is the leading telecommunications company in Mexico with more than 14.4 million telephone lines in service and more than 2 million line equivalents for data transmission. TELMEX has invested more than 27 billion dollars in the last 12 years. The company offers telecommunications services through a 74,000 kilometer fiber optic digital network. TELMEX and its subsidiaries offer a wide range of advanced telecommunications, data and video services, Internet access as well as integrated telecom solutions for corporate customers.

Visit www.telmex.com.

About Alvarion

Alvarion is dedicated to delivering seamless wireless broadband networking infrastructure to carriers, ISPs and private network operators, in order to leverage their broadband opportunities into sustainable profits.

Alvarion offers premier wireless broadband solutions for access in the last mile, backhauling connection to the backbone and private network connectivity. Featuring the industry's most extensive range of products and international support, Alvarion is a pioneering leader of the converged wireless broadband network.

With over 1.5 million units deployed in 120 countries worldwide, Alvarion provides secure rich-media networks for business or residential Internet access, corporate VPNs, cellular base station feeding, community interconnection, public safety connectivity and extended Hotspots.

Recently incorporated InnoWave's wideband access portfolio and expertise, Alvarion provides a complete wireless solution supporting a wide range of frequency bands, customer profiles and service types.

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

This press release may contain 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 inability 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.

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