Press Releases

Alvarion Closes Acquisition Of InnoWave, ECI’s Fixed Wireless Subsidiary

Tel – Aviv, Israel, April 2, 2003 – Alvarion Ltd. (NASDAQ: ALVR), the world leader of Wireless Broadband solutions for Carriers, ISP’s and network operators, today announced that it has completed the acquisition of most of the assets and liabilities of InnoWave ECI Wireless Systems Ltd., a market leader provider of fixed wireless wideband voice and data point to multi point solutions, wholly owned by ECI Telecom Ltd. (NASDAQ: ECIL).

As disclosed on February 19, 2003, Alvarion is paying $9.7 million in cash, and granting a warrant to purchase 200,000 of Alvarion’s ordinary shares over a period of 5 years at an exercise price of $3 per share. The transaction will be accounted for as an assets transaction. During the next several quarters, Alvarion expects to record charges of approximately $3 million related to acquisition and integration costs.

The acquisition is an important step forward in implementing Alvarion’s strategy to strengthen its leading position of the Fixed Wireless industry. The integration of InnoWave into Alvarion is expected to:

Expand Alvarion’s product portfolio with a range of established, high-quality, and excellent cost-performance Wideband Voice and Data solutions; Significantly increase Alvarion’s ILEC customer base and experience in large scale deployment projects. Double Alvarion’s wireless subscribers installed base to nearly 1.5 million. Position Alvarion as the new leader in the growing Wideband Voice and Data market within the Broadband Wireless industry.

About Alvarion

Alvarion is a premier provider of solutions based on Point-to-Multipoint (PMP) Broadband Wireless Access (BWA) used by telecom carriers, service providers, and enterprises worldwide. Alvarion systems provide Internet access and voice and data services in the last mile, cellular network feeding, building-to-building and wireless local area network (LAN) connectivity.

Alvarion offers 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.

About ECI Telecom

ECI is a provider of advanced, telecommunications solutions. With its leading-edge access, transport and bandwidth management platforms, ECI enables major service providers and carriers worldwide to maximize their capital investment and reduce operating expenses while providing voice, data, video and multimedia services to their customers. ECI maintains a global sales and customers support network. Its solutions are an integral part of more than 700 telecommunications networks in over 145 countries. For more information, please visit ECI’s web site at http://www.ecitele.com.

About InnoWave

InnoWave ECI Wireless Systems Ltd., a wholly owned subsidiary of ECI Telecom Ltd., is a global leader in the design and deployment of innovative and cost effective fixed wireless access solutions. Over 60 telecom operators worldwide have successfully deployed InnoWave’s systems to deliver high quality and reliable voice and data services to more than 700,000 subscribers. For more information, please visit Alvarion’s web site at http://www.innowave-ws.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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