Press Releases

Alvarion Reports Record Revenues for Third Quarter 2007

BreezeMAX™ Shipments Exceed $100 Million in First Nine Months of 2007

Download Q3 07 Financials

TEL AVIV, Israel – October 31, 2007 - Alvarion Ltd. (NASDAQ: ALVR), the leading provider of WiMAX™ and wireless broadband solutions, today announced financial results for the quarter ended September 30, 2007.

Highlights:

• Record revenues of $60.6 million, up 39% from Q3 2006
• Record BreezeMAX revenues of $35 million
• Non-GAAP EPS of $0.04; GAAP EPS of $0.01
• Positive operating cash flow of over $3 million

In the third quarter of 2007, revenues reached a new record of $60.6 million, an increase of 5% from $57.5 million in the second quarter of 2007, and 39% from $43.7 million in the third quarter of 2006.

GAAP net income in the third quarter of 2007 was $621,000, or $0.01 per share, which included income from discontinued operations of $750,000. Net loss from continuing operations was ($129,000) or ($0.00) per share, compared to a loss from continuing operations of ($482,000), or ($0.01) per share in Q2. Loss from continuing operations in the third quarter of 2006 was ($2.4) million, or ($0.04) per share.

Excluding the results of the discontinued operations, amortization of acquired intangibles and deferred stock compensation, on a non-GAAP basis, the company reported a net profit of approximately $2.4 million, or $0.04 per diluted share, compared with a non-GAAP net profit of approximately $2.0 million, or $0.03 per diluted share in the second quarter of 2007, and a non-GAAP net profit of approximately $68,000, or $0.00 per diluted share in Q3 2006. 

The company generated positive cash flow from continuing operating activities of approximately $3.6 million during Q3 2007. Cash reserves as of September 30, 2007 totaled approximately $125 million, up from about $122 million in the previous quarter.

For supplemental information to facilitate evaluation of the impact of non-cash charges and comparisons with historical results of continuing and discontinued operations, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q3 2007 and the comparative quarters.

Comments from Management

“We are pleased to report another quarter of record revenues and we are on track to achieve our 25-30% growth objective for 2007,” said Tzvika Friedman, President and CEO of Alvarion. “BreezeMAX revenue was more than double the level of a year ago. WiMAX shipments remained at a high level and we ended the quarter with over 200 commercial deployments, up from about 170 at the end of Q2. Many of these deployments are still in the early stages, and represent significant opportunities for future expansion.”

Q4 2007 Guidance

The company’s revenue guidance for Q4 2007 is $61 to $65 million. Based on this revenue range, non-GAAP per share results from continuing operations are expected to range between $0.02 and $0.05. GAAP per share results are expected to range between $(0.01) and $0.02.

Alvarion’s management will host a conference call today, October 31, at 9:00 a.m. Eastern time to discuss the quarter. To participate in the call, please dial one of the following numbers approximately five minutes prior to the scheduled start time:

The public is invited to listen to the live webcast of the conference call. For details please visit Alvarion’s website at www.alvarion.com.  An archive of the on-line broadcast will be available on the website.  A replay of the call will be available from 12:00pm. EDT on November 1, 2007 through 12:00pm. EST on December 1, 2007.

To access the replay, please call: USA: (USA) (800) 633-8284; International: +1(402)-977-9140.  To access the replay, users will need to enter the following code: 21352131.

About Alvarion

With more than 3 million units deployed in over 150 countries, Alvarion (www.alvarion.com) is the world’s leading provider of innovative wireless broadband network solutions enabling Personal Broadband to improve lifestyles and productivity with portable and mobile data, VoIP, video and other services.

Alvarion is leading the market to Open WiMAX solutions with the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands with both fixed and mobile solutions. Alvarion’s products enable the delivery of personal mobile broadband, business and residential broadband access, corporate VPNs, toll quality telephony, mobile base station feeding, hotspot coverage extension, community interconnection, public safety communications, and mobile voice and data.

As a wireless broadband pioneer, Alvarion has been driving and delivering innovations for over 10 years from core technology developments to creating and promoting industry standards. Leveraging its key roles in the IEEE and HiperMAN standards committees and experience in deploying OFDM-based systems, the Company's prominent work in the WiMAX Forum is focused on increasing the widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to Open WiMAX solutions.

This press release contains 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: the failure of the market for WIMAX products to develop as anticipated; Alvarion’s inability to capture market share in the expected growth of the WIMAX market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; 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 the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission.

Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission, which this press release will be a part of.

You may request Alvarion's future press releases or a complete Investor Kit by contacting Kika Stayerman, kika.stayerman@alvarion.com or +972.3.767.4159.

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