Notas de Imprensa

Alvarion Announces Stock Options Exchange Program

TEL - AVIV, Israel, Aug. 22, 2002, Alvarion Ltd. (NASDAQ: ALVR - News), a leading provider of Broadband Wireless Access (BWA) solutions, today announced that its Board of Directors has approved a voluntary stock options exchange program.

Under the program, Alvarion stock options holders will be given the opportunity to voluntarily cancel unexercised vested and non-vested stock options previously granted to them, in exchange for replacement stock options that will be granted at a future date. Depending upon the original exercise price of the options, those participants who elect to take advantage of the program will receive new options that will be in an amount between 2 and 85 percent of the number of their existing options that are cancelled. As an incentive for doing so, the price of the new options will be at an exercise price equal to the closing price of Alvarion's ordinary shares on NASDAQ on the date of the grant, which currently is expected to be March 22nd, 2003. The exchange offer will expire on September 20th, 2002.

As a result of the stock exchange program, the amount of stock options outstanding is expected to be reduced by approximately 3 million, which is nearly 20% of the total stock options outstanding today.

Zvi Slonimsky, Chief Executive Officer of Alvarion, said, "Our employees are our most important assets and are essential to our long-term success. As we all know, stock options are an important incentive program designed to retain and recruit the best of talent. By restoring the power of our previously granted options, Alvarion will support a key asset, its employees, to continue to contribute for the future growth and success of the Company."

The exchange program has been designed in accordance with Financial Accounting Standard Board (FASB) interpretation No. 44, "Accounting for Certain Transactions Involving Stock Compensation" - An Interpretation of APB Opinion No. 25. Accordingly, the Company anticipates that there will be no variable compensation charges as a result of the exchange program.

About Alvarion
Alvarion is a premier provider of solutions based on Point-to-Multipoint (PMP) Broadband Wireless Access (BWA) used by telecom carriers, service providers, and enterprises worldwide. Alvarion systems provide Internet access and voice and data services in the last mile, cellular network feeding, building-to-building and wireless local area network (LAN) connectivity.

Alvarion offers the broadest range of BWA solutions by market segment and frequency band, designed to address all carriers' and service providers' business models. With its combined market experience, strong customer base, diversified distribution channels and field-proven deployments, Alvarion is a leading BWA pure play provider for every end user profile, from residential subscribers to business customers.

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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