Notas de Imprensa

Alvarion Reports Second Quarter 2002 and First-Half 2002 Resutls

Tel – Aviv, Israel, July 30, 2002 – Alvarion Ltd. (NASDAQ: ALVR), a leading provider of Broadband Wireless Access (BWA) solutions, today announced its financial results for the second quarter and the first six months ended June 30, 2002.

Note: The Company’s statement of operations is based on U.S. GAAP. The Company was formed on August 1, 2001 through the merger of BreezeCOM Ltd. and Floware Ltd. As such, the Company’s results for the second quarter and the first six months of 2001 include the results of BreezeCOM Ltd. only. Revenues for the second quarter of 2002 were $22.3 million, compared with $22.7 million for the first quarter of 2002 and $22.4 million for the second quarter of 2001.

Net loss for the second quarter of 2002 was $(5.0) million, or $(0.09) per diluted share, compared with $(5.5) million, or $(0.10) per diluted share, for the first quarter of 2002, and $(21.0) million, or $(0.72) per diluted share, in the second quarter of 2001.

Cash reserves as of June 30, 2002 were $175.2 million, compared with $179.2 million as of March 31, 2002.

If amortization of current technology and deferred stock compensation in the total amount of $747,000 were excluded from the Company’s second quarter 2002 results, the net loss for the quarter would have been $(4.3) million, or $(0.08) per diluted share. This compares with a net loss, excluding amortization of current technology and deferred stock compensation of $752,000, of $(4.8) million, or $(0.09) per diluted share, in the first quarter of 2002.

Commenting on the second quarter, Zvi Slonimsky, CEO of Alvarion, stated, “In the face of difficult markets, we are proud to report solid revenues, gross margin improvement, and a continual decrease in operating expenses, resulting in a decreased loss per share and a stable cash burn for the second quarter. We attribute the strength of our sales to the markets we have targeted, the depth and quality of our product portfolio, and the diversity of our growing customer base.

“We continue to see opportunities in both our target market segments: established cellular carriers in developing regions, and wireless service providers in rural areas. In Central and South America, interest from cellular operators has been especially strong as evidenced both by sales during the quarter and deals in the pipeline. In the U.S., the telecom slowdown is creating opportunities for rural service providers, who provide needed services in areas that are underserved by the major telcos. We are encouraged to see a lot of new activities in many regions. During the quarter, approximately 30 new customers installed our products for the first time, and a number of new orders from other new customers are in the pipeline.”

“During the quarter, we also recorded sales and substantial interest from customers in a new segment, namely, Emergency Services. Driven by the new emphasis in the United States on Homeland Security, state and local law enforcement agencies, first-aid organizations, and fire departments are now planning information system upgrades. They are coming to us for our unique BreezeACCESS Mobile™ technology that is able to connect mobile computers – the units within squad cars and ambulances – to a central computer and to keep them connected even while in ‘hot pursuit.’ We believe this vast new market creates a lot of opportunities and that we are ideally positioned to benefit.”

Mr. Slonimsky continued, “We recently introduced a few new products that strengthen our dominant position in the sub-11 Ghz Broadband Wireless Access segment, and during the quarter, we increased our offering in the 5.8 GHz bands. Our BreezeNET DS.5800 Wireless Bridging system will be used by wireless service providers for cost-effective long-range backhauls, and by enterprises to bridge campus wireless LANs. The BreezeACCESS V is an ideal network supplement for our existing 2.4 Ghz networks, and is a primary network solution for several specific markets. We intend to continue introducing new products in the 5GHz bands in the future, including a non-Line-Of-Site OFDM 5GHz product.”

Mr. Slonimsky concluded, “Overall, we are pleased with our performance in this difficult environment and with our solid financial results.

We are confident that our comprehensive product offering, our extensive market presence, and our talented and dedicated people will enable us to take full advantage of improving market trends, and to benefit from our leadership of the Broadband Wireless market.”

The Company will hold a teleconference today, July 30, 2002, at 9:00 a.m. EDT to discuss the quarter's results. To participate in the call, please dial (888) 417-2310 (in the U.S.), or (973) 582-2749 (internationally), approximately five minutes prior to the scheduled call start time. The call will also be available live as a Webcast on www.kcsa.com and www.alvarion.com, where it will be archived and available for replay for 30 days. A replay of the call can also be accessed via telephone from 11:00 a.m. EDT on July 30, 2002 through 11:59 p.m. on August 6, 2002 by calling (877) 519-4471 in the Unites States, or (973) 341-3080 internationally, and entering the following access code: 3378563.

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.

For more information, please visit Alvarion’s 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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