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Jun 26, 2001

BreezeCOM and Floware Announce Successful Integration of their Base Stations



Tel ­Aviv, Or Yehuda, June 26, 2001. BreezeCOM Ltd. (NASDAQ: BRZE) and Floware Wireless Systems Ltd. (NASDAQ: FLRE), two leaders in the field of Broadband Wireless Access (BWA), today announced that an R&D taskforce consisting of engineers from both companies has successfully created a working laboratory prototype of an integrated base station. The technology will enable telecommunication operators to communicate from a single base station with both BreezeCOM's and Floware's customer premises equipment (CPE). Commercial availability of the integrated base station is planned for early 2002
The integrated base station consists of one or more Floware radio units in the 3.5GHz frequency band. Each radio unit is capable of communicating with the CPEs of both companies - BreezeCOM's BreezeAccess unit and Floware's WALKair unit. This will enable operators to serve a variety of subscribers from each base station, from SME (small and medium enterprises) and MTU (multi-tenant units) to SOHO (small office / home office) and residential subscribers. In addition, Floware's existing customer operators already utilizing WALKair base stations mainly for SME customers will also be able to connect SOHO and residential subscribers by offering them the cost-effective BreezeAccess CPE unit.

Commenting on the news, BreezeCOM's President and CEO, Zvi Slonimski, said, "We are proud that the joint taskforce, launched just two months ago, has already achieved its first major milestone. This is the initial fruit of our ongoing efforts to make the merger a success. It strengthens our belief that the agreed-upon merger will create the industry's leading BWA pure-player with a strong R&D team, a wide range of leading technologies and a large variety of distribution channels."

Floware's CEO, Amnon Yacoby, added, "The integrated base station answers the expressed need of many of our customer operators to be able to address a variety of subscribers from a single base station. The operators will be able to increase the revenue potential of their network by addressing a larger subscriber base. We continue to work on a comprehensive development plan that will result not only in integration of BreezeCOM and Floware products, but also in the development of new products that will enhance the operators' return on investment."

About BreezeCOM
BreezeCOM is the leading provider of Broadband Wireless Access (BWA) solutions used by service providers and enterprises. Its products provide a wireless alternative to wired access solutions, such as DSL and cable modems, and facilitate indoor and outdoor, as well as fixed and mobile wireless LAN connectivity. BreezeCOM products are based on a packet switching point-to-multipoint wireless platform, optimized for high-speed Internet and intranet access. Core technologies include spread spectrum radio, digital signal processing, modems, networking protocols and VLSI. For more information on BreezeCOM, visit www.breezecom.com.

About Floware
Floware Wireless Systems Ltd. is a leading provider of point-to-multipoint fixed broadband wireless access (BWA) systems. These systems are used mainly by new carriers that connect business customers in the "last mile." Floware's WALKair system enables carriers to provide high-speed Internet access, as well as a wide range of voice and data services on the 3.5, 10.5, and 26 GHz radio frequency bands. Floware currently has more than 60 deployments worldwide. For more information, visit Floware's website at www.floware.com.

About the Planned BreezeCOM-Floware Merger
On April 5, 2001, BreezeCOM and Floware entered into an agreement and plan of merger pursuant to which, upon satisfaction of certain conditions, Floware will merge into BreezeCOM. Both companies believe that the merger will create a leading global provider of point to multi-point solutions, a "one stop BWA shop", offering cost - effective solutions for operators providing services to markets ranging from small and medium enterprises (SME) and multiple-tenant units (MTU) to small office/home office (SOHO) and residential markets.

 


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