Press Releases

Alvarion Closes Acquisition Of Interwave Communications

Tel Aviv, Israel, December 9, 2004 - Alvarion Ltd., (NASDAQ: ALVR), the world's leading provider of wireless broadband solutions, today announced that it has completed the acquisition of interWAVE Communications International, Ltd. (NASDAQ: IWAV), a leading provider of compact mobile GSM and CDMA network equipment and services.

interWAVE shareholders approved the terms of the revised Amalgamation Agreement on December 8, 2004. Alvarion is paying $4.18 for each interWAVE share, for total consideration of approximately $40 million.

Strategic advantages to the addition of interWAVE include:

providing a complementary solution for both fixed and mobile operators in the developing regions of the world
increasing revenues by leveraging Alvarion's channel strength
positioning Alvarion in the mobile space with products, customers and technical expertise in mobile systems design and deployment to support the mobile broadband strategy

"We are pleased that we have closed this transaction and are looking forward to moving ahead with our growth strategy," said Zvi Slonimsky, CEO of Alvarion. "We welcome all the interWAVE customers as well as the excellent interWAVE people who will enhance our organization. Together we are in a position to make a real impact on the evolution of mobile broadband moving into the WiMAX era."

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About Alvarion

With more than 2 million units deployed in 130 countries, Alvarion is the worldwide leader in wireless broadband providing systems to carriers, ISPs and private network operators, and also in extending coverage of GSM and CDMA mobile networks to developing countries and other hard to reach areas.

Leading the WiMAX revolution, Alvarion has 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 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. Alvarion works with several global OEM providers and over 200 local partners to support its diverse global customer base in solving their last-mile challenges.

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 deploying OFDM-based systems, the Company's prominent work in the WiMAX Forum is focused on increasing widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to mobile WiMAX solutions.

For more information, visit Alvarion's World Wide Web site at www.alvarion.com

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: risks relating to the integration of interWAVE's business into that of Alvarion; 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 in ability 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 request Alvarion's future press releases or a complete Investor Kit by contacting Carmen Deville, Investor Relations: carmen.deville@alvarion.com or 1-760-517-3188.

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