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Oct 15, 2001

AT&T's Subsidiary in Mexico- Alestra, Deploys Alvarion BWA Systems



-- Deal secured through NEC, an Alvarion OEM partner -
 
Tel – Aviv, Israel, October 15, 2001 – Alvarion Ltd. (NASDAQ: ALVR), a leading provider of Broadband Wireless Access (BWA) solutions, announced today that Alestra, an AT&T subsidiary and one of Mexico’s leading telecommunications service providers, is deploying WALKair base stations and terminal equipment in the 10.5GHz frequency bands.

Working with Alvarion’s OEM partner NEC (NASDAQ: NIPNY), Alestra installed its first WALKair base stations successfully in Q2 2001, and has now begun connecting corporate customers in the Monterrey and Guadalajara metropolitan areas. To address substantial commercial demand for its BWA services, Alestra continues to order additional WALKair base stations and terminal units.

Commenting on the news, Alestra's CEO, Mr. Rolando Zubirán, said, “Alestra is committed to providing the highest service quality and reliability to its customers throughout Mexico. We selected NEC and Alvarion for their superior technical performance, their competitive price-performance, and their world-class technical support. Through our own experience – as well as that of our parent, AT&T -- we know the importance of these attributes for meeting the commitments we have made to our demanding customers.”

Alestra's CTO, Mr. Ricardo Pineda, said, "On the technological side, WALKair allows us to offer cutting-edge differentiated and scalable data services, together with high-quality voice services, to small-to medium enterprise (SME) customers. The modular nature of the technology enabled us to launch BWA services with a minimal investment, and to build out the network quickly in line with proven customer demand. This reduces the risk of the network investment, and is a significant advantage for us.”

Tzvika Friedman, President & COO of Alvarion, commented, “We are very pleased with our expanding relationship with NEC in Mexico. We currently have two commercial deployments in Mexico, and several field trials are in progress. Our experience confirms that Mexico, with a large population and a dense concentration of SMEs, is ripe for BWA, and offers significant potential for Alvarion. Our cost-effective systems offer a winning business case, looking to cost-effectively expand their portfolio of service offerings. To fully capitalize on the opportunity, we continue to ramp up our Mexican presence and, more generally, throughout Latin America under the coordination and support of our Miami office.”

About Alestra
Alestra is the Mexican telecommunications company that offers broadband and value added services, with the high quality standards of the world's telecommunications leader, AT&T. Alestra has invested over $1.1 billion in Mexico where it has built a state-of-the-art network based on the most advanced technologies. Alestra provides seamless access to AT&T's Worldwide Intelligent Network, which delivers over 250 million data and voice messages daily, to more than 280 countries and territories. Alestra is the first telecommunications company in Mexico to obtain the ISO 9002 certification for all of its processes.

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) is a leading provider of Internet solutions, dedicated to meeting the specialized needs of its customers in the key computer, network and electron device fields through its three market-focused in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation, with its in-house companies, employs more than 150,000 people worldwide and saw net sales of 5,409 billion Yen (approx. US$43 billion) in fiscal year 2000-2001. For further information, please visit the NEC home page at: http://www.nec.com

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, 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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