Notas de Imprensa

Alvarion Reports Third Quarter And Nine Months 2001 Results

Tel – Aviv, Israel, November 12, 2001 – Alvarion Ltd. (NASDAQ: ALVR), a leading provider of Broadband Wireless Access (BWA) solutions, today announced its financial results for the third quarter and nine months ended September 30, 2001.

The Company was formed on August 1, 2001 as a result of the merger of BreezeCOM Ltd. and Floware Ltd. As such, the quarter’s reported numbers include both the results of BreezeCOM Ltd. from July 1, 2001 through the end of the quarter, and the results of Floware Ltd. from the merger date through the end of the quarter. The pro-forma results for the third quarter and nine months ended September 30, 2001 are presented for informational purposes only. They reflect the full-quarter contributions of both BreezeCOM and Floware as if the merger were completed on January 1, 2001. The pro-forma results exclude non-recurring expenses totaling $34.4 million related to in-process research and development charges, merger-related expenses, and restructuring costs related to the workforce reduction announced in July. The pro-forma results also exclude an inventory charge of $34.5 million for excess slow-moving inventory and a provision for inventory purchase commitments.

Revenues in the third quarter ended September 30, 2001, on a pro forma basis, were $27.8 million, compared with revenues of $29.0 million as reported in the third quarter ended September 30, 2000. Net loss on a pro forma basis for the third quarter was ($5.7) million, or ($0.10) per basic and diluted share, compared with net income of $3.7 million, or $0.11 per diluted share, as reported in the third quarter ended September 30, 2000.

Revenues in the nine months ended September 30, 2001 on a pro forma basis were $111.9 million, compared with $69 million as reported in the same period last year.

Basic and diluted loss per share for the nine months ended September 30, 2001 on a pro forma basis was ($0.20), compared with diluted earnings per share of $0.11 as reported in the same period last year.

Zvi Slonimsky, co-CEO of Alvarion, stated, “The merger of our two companies has created the industry’s strongest fixed wireless player with the broadest product line, most extensive marketing reach, and deepest R&D capabilities. During this difficult quarter, we were pleased to be able to record substantial revenues of $27.8 million. We have already begun to feel the positive effects of the recent merger in terms of our enhanced ability to provide comprehensive solutions to an expanded target audience.” Mr. Slonimsky continued, “We are very pleased with customer reaction to the merger, and have recently announced cross-sale successes. One of them is Gateway Systems, a well-financed Broadband Wireless Access provider in India, which is deploying a new BreezeAccess network in the unlicensed 2.4 GHz band to target entry-level Internet access applications, and to supplement its WALKair 10.5 GHz network. Several additional cross-sale opportunities are in progress.” Amnon Yacoby, co-CEO of Alvarion, stated, “Market conditions have caused a clear shift in the BWA market. We are addressing these changes by focusing aggressively on two target markets: established carriers - mainly cellular operators and incumbents, and ISPs and independent local operators. “Established cellular carriers are leveraging existing marketing and physical infrastructure by launching broadband services based on new fixed wireless networks that they are installing in parallel to their cellular networks. Incumbent telcos are installing BWA networks as a supplement to their copper networks in order to provide broadband where DSL cannot be deployed. “ISPs, independent telcos and local operators are also targeting areas that DSL cannot reach, using our products in the unlicensed bands for a fast return on investment. We have clearly seen this trend in the U.S. market, where our revenues in the third quarter of 2001 where higher than the second quarter.”

Mr. Yacoby added, “As previously announced on November 1, 2001, in light of our lower revenues and current market conditions, we are implementing cost-cutting measures to reduce our operating expenses, including a reduction in our worldwide workforce of approximately 20% These cost-cutting measures are intended to streamline our operations, reduce overhead, and eliminate duplicative functions. At the same time, we remain committed to the continued development of our leading products for carriers, ISPs and Enterprise customers. We expect these savings to begin impact our results as early as the fourth quarter, and their full effect will be felt during the first quarter of 2002.”

As was previously announced on November 1, 2001, Alvarion’s Board of Directors approved a share buyback program. The Company is seeking the approvals required by Israeli law that will allow it to invest up to $10 million in the repurchase of Alvarion’s outstanding shares.

Mr. Yacoby concluded, “Alvarion is the industry’s strongest fixed wireless access player. Our products’ variety, technological advantage, global presence, and diverse customer base, together with our strong balance sheet and ample working capital, position us to maximize current opportunities in the market and to gain long term benefits.”

The Company will hold a teleconference today, November 12th, at 9:00 a.m. EST to discuss the quarter’s results. To participate in the call, please dial (877) 780-2276 (in the U.S.), or (973) 628-9554 (internationally), approximately ten minutes prior to the scheduled call start time. A replay of the conference call will be available from approximately 11:00 a.m. EST on November 12, 2001, until 11:59 p.m. EST on November 14, 2001. To access the replay, please dial (877) 519-4471 (in the U.S.), or (973) 341-3080 (internationally), and enter authorization code 2937654.

About Alvarion
Alvarion is a powerhouse of point-to-multipoint Broadband Wireless Access (BWA) solutions for telecom carriers, service providers, and enterprises worldwide. Alvarion’s systems are used for providing Internet access and voice and data services for subscribers in the last mile, for feeding of cellular networks, for building-to-building connectivity and for wireless local area network (LAN).

The merger of BreezeCOM and Floware to form Alvarion has created a company with 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 website 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.

You may register to receive Alvarion’s future press releases or to download a complete Digital Investor Kit™ including press releases, regulatory filings and corporate materials by clicking on the “Digital Investor Kit™” icon at www.kcsa.com. Alvarion LTD.

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