Press Releases

Spanish Operator NEO Orders $3 million in Additional BWA Equipment from Floware

Further Investments Planned as NEO Continues Build-Out of state-of-the-art BWA Network
 
OR YEHUDA, Israel and MADRID, Spain - July 10, 2001. Floware Wireless Systems (NASDAQ: FLRE), a leading provider of broadband wireless access (BWA) communications systems, and NEO, the brand name of Abrared, S.A., a leading Spanish telecommunications operator, today announced that NEO ordered additional BWA equipment from Floware valued at more than $3 million.

The orders were placed and equipment was shipped during the second quarter. The orders were for terminal equipment needed to connect NEO's small- and medium-sized enterprise (SME) customers to its advanced WALKair BWA network, and for additional base stations that will be used for further network build-out in Spain.

Since its initial order of WALKair equipment in Q4 2000, NEO has completed the installation of 56 base stations, and has launched commercial services in 22 major Spanish cities, each with a population of more than 200,000. Floware has also delivered hundreds of terminal stations that will be used to connect NEO's customers to the network. With a 2001 budget of 330 million euros, NEO plans to install a total of 106 base stations by the end of 2001 and 126 base stations by the Q2 2002, thereby achieving 40% coverage of Spain's population.

Commenting on the news, Enrique Jalle, CEO of NEO, said, "NEO's experience validates the WALKair BWA promise of rapid network deployment and superior performance, all backed by responsive, professional service. We are pleased with the smooth installation process, which enabled us to launch services in Spain's most populated areas in record time. As we accelerate our marketing efforts, WALKair gives us a competitive advantage, allowing us to offer a full range of services at extremely low prices - sometimes just half of prevailing market rates."

Analysts predict that Spain will be one of the most important BWA markets in Europe. Hamish MacKenzie, Senior Research Analyst of IDC's European Telecommunications Services, explains, "IDC believes the Spanish market will be one of the largest and most dynamic in Europe in terms of BWA. The advantages in bandwidth flexibility and deployment speed offered by BWA technology should ensure that BWA will form an important part of broadband access infrastructure across Western Europe. IDC believes that 10%-15% of businesses with a broadband connection will be using a BWA solution by the year 2005."

Amnon Yacoby, CEO of Floware, added, "As alternative carriers move from network installation to service deployment, BWA's business case becomes even more pronounced, and we are proud of the results our technology has delivered to our two Spanish customer carriers. Backed by some of Spain's leading financial and industrial institutions, NEO has launched aggressive marketing activities, and has budgeted significant sums to the continued build-out of its BWA network. We believe that WALKair's advanced functionality and favorable cost characteristics - along with our world-class support - will contribute to our customers' market success."

About NEO
NEO is the brand name adopted by the Abrared Consortium for its recently launched commercial telecommunications services. The Abrared Consortium received a license in April 2000 to build and operate telecommunications infrastructure based on BWA technology in the 3.5 Ghz frequency band. In late May 2001, it launched the first phase of its network, initiating commercial service in 22 major cities.

Abrared, S.A. is majority owned by Iberdrola Diversification, the diversified services arm of the second largest electrical power company in Spain. Other shareholders include Merlin Servicios Portadores , a stakeholder of the Spanish cable telecommunications company ONO; Bancaja and Caixa Galicia, two major savings banks; and Grupo Corporativo Fuertes, a Spanish industrial group; Formus Communications Ibérica S.A., a high-speed broadband services company. Abrared's BWA technology will help overcome the existing local loop bottleneck in Spain. In addition, Abrared offers high speed broadband Internet access as well as other voice and data services to business customers.

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, in the 3.5, 10.5, and 26 GHz radio frequency bands. Floware currently has more than 60 deployments worldwide. On April 5, 2001, Floware entered into an agreement and plan of merger with BreezeCOM Ltd., pursuant to which, upon satisfaction of certain conditions, Floware will merge into BreezeCOM. For more information, visit Floware's website at www.floware.com.

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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