Floware Selects SCI Systems as Electronic Manufacturing Service Provider

SCI to Manufacture Indoor Units of Floware's Broadband Wireless Access System 
 
Or Yehuda, Israel, January 16, 2001 ­ Floware Wireless Systems Ltd. (NASDAQ: FLRE), a leading provider of broadband wireless access (BWA) communication systems, announced today that it had entered into an agreement with SCI Systems, Inc. (NYSE: SCI), a leading electronic manufacturing service (EMS) provider to produce the indoor units of Floware¹s WALKair system.

SCI will conduct turn-key production of the terminal station and base station indoor units for all the radio frequencies that the WALKair system supports at its plant in Irvine, Scotland. SCI will handle the entire manufacturing process, including purchasing of parts, stock management, board assembly, mechanical assembly, testing, quality assurance, packaging and delivery to customers. Going forward, SCI also will conduct new product introductions.

The terminal station and base station are the key components of Floware¹s WALKair system, a BWA system that enables telecommunications carriers to provide high-speed Internet access and a wide range of voice and data services on the 3.5, 10.5 and 26 GHz radio frequency bands.

"We are pleased to announce the agreement with a world-class electronic manufacturing service provider like SCI," said Amnon Yacoby, CEO of Floware. "The outsourcing of our indoor unit production to SCI is an important component of our strategy to reduce our product costs. SCI's tremendous purchasing power and ability to achieve manufacturing economies of scale allow us to successfully implement this strategy and significantly reduce product cost. In addition, SCI's substantial production capacity will enable us to rapidly increase the production volume of the WALKair system and continue meeting customers¹ delivery requirements for our BWA products."

Mr. Yacoby added, "Floware is also in the process of outsourcing the production of its outdoor units to turn-key manufacturers. The outdoor units of the 26 GHz radio frequency band are already produced by a turn-key manufacturer in Japan. Floware plans to have the outdoor units of the 10.5 GHz radio frequency band turn-key manufactured in the near future. We expect that the turn-key manufacturing will bring Floware similar benefits as the turn-key production of the indoor units."

"We are pleased to have been selected as the manufacturing service provider by an innovative, leading broadband wireless equipment provider such as Floware," said Gene Sapp, Chairman and CEO of SCI. "SCI is committed to providing Floware with all of its experience and expertise in quality and cost competitive manufacturing. This, coupled with our strong global presence, will considerably strengthen Floware's ability to meet the growing worldwide demand for its products, while further demonstrating SCI¹s broadband wireless communications capabilities."

About SCI Systems, Inc.
SCI Systems, Inc. is a world-class provider of manufacturing and supply chain services. SCI delivers supply chain solutions through its global reach, dedication to quality, efficiency, and total commitment to customer service. The company continues to pioneer new innovative end-to-end services through its commitment to being the leading e-enabled EMS services provider. SCI is publicly traded on the New York Stock Exchange under the symbol "SCI." The company, headquartered in Huntsville, Alabama, operates 51 facilities located in 19 countries. SCI employs more than 37,000 people.

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 (CLECs) which 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 50 deployments worldwide.

This press release and statements by Floware in shareholder reports and public filings, as well as in oral public statements by Floware´s representatives may contain forward looking statements. Such statements are subjected to certain facts, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to in such statements. The risks are identified in Floware´s registration statement on Form F-1 (Registration Statement No. 333-12290) filed with the Securities and Exchange Commission.

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