The joint solution features the integration of Alvarion's advanced radio access network technology, which has been proven in over 200 commercial WiMAX deployments, with Nortel's core network solutions, backhaul solutions, applications such as Nortel's number one carrier VoIP solution, and Nortel Global Services for WiMAX.. The Nortel and Alvarion WiMAX solution will allow operators to offer high speed wireless Internet access across large areas, including those currently underserved by broadband capabilities. The joint WiMAX solution will also provide the speed and capacity to help operators meet the exploding demand for true mobile broadband.

"Wireless broadband is one of the fastest growing opportunities in the telecommunications market," said Richard Lowe, president, Carrier Networks, Nortel. "Early movers in this market are looking for a high quality, turnkey WiMAX solution that delivers vast coverage in a cost-effective way and meets growing demand for true mobile broadband that can support new services like streaming music and mobile TV. The collaboration between Nortel and Alvarion will allow both companies to deliver on these needs quickly and efficiently with a world class WiMAX solution that is based on the best technology from each. The solution will also include Nortel services, ranging from network consulting, design and deployment to full network management, to help customers maximize network investments by providing the flexibility to handle changing coverage, capacity and other unique requirements."

"Nortel and Alvarion, both innovators in the wireless arena, are coming together to respond to the demand for WiMAX solutions in all regions of the world," said Tzvika Friedman, president and chief executive officer, Alvarion. "Alvarion's mature, extensively deployed WiMAX radio access network solution, together with Nortel's core network technology, applications and services will address the requirements of large WiMAX projects with the combined strength of both organizations. In keeping with our strategy of best of breed collaborations, this initiative will also allow us to tailor solutions and applications for specific customer needs. The platform offers WiMAX solutions for multiple frequency bands thus leveraging economies of scale from global deployments, expected to result in a lower cost of ownership for the customers."

The agreement also covers the resale by Nortel of the Alvarion platform of WiMAX access products in order to form the end-to-end solution for customers. Alvarion's development of its portfolio of leading-edge WiMAX base stations will be accelerated by Nortel's contribution of resources, expertise, and funding to enhance the development of the joint solution. Both companies will also work together to perform Interoperability Testing (IOT). Alvarion will focus on device to network interoperability testing and Nortel will concentrate on the end-to-end network integration with the IP core, and applications. In order to incentivize the parties to engage in these activities, during the term of the agreement, Alvarion will be Nortel's exclusive supplier of WiMAX IEEE 802.16(e) 2X2/2X4 macro base stations and both parties have agreed to designate account leads in order to go to market in the most efficient and effective manner.

For additional insight on Nortel and Alvarion's strategic WiMAX agreement please listen to this podcast featuring Richard Lowe and Tzvika Friedman.

About Alvarion

Alvarion is the largest WiMAX pure player, ensuring customer long-term success with fixed and mobile solutions for the full range of frequency bands. Based on its OPEN(TM) WiMAX strategy, the company offers superior wireless broadband infrastructure and an all-IP best-of-breed ecosystem in cooperation with its strategic partners. Alvarion boasts over 200 commercial WiMAX deployments worldwide. For more information, visit Alvarion on the Web at (www.alvarion.com).

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.

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 agreement to generate increased sales as anticipated; failure of 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.

"WiMAX Forum" is a registered trademark of the WiMAX Forum. "WiMAX," the WiMAX Forum logo, "WiMAX Forum Certified" and the WiMAX Forum Certified logo are trademarks of the WiMAX Forum.

"Alvarion" is the registered trademarks of Alvarion Ltd.

"OPEN" is the trademark of Alvarion Ltd.

All other companies' names, products, services may be the properties of their respective owners.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. The assumptions, although considered reasonable by Nortel at the date of this press release, may prove to be inaccurate and consequently Nortel's actual results could differ materially from its expectations set out in this press release. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel's business including: significant competition, competitive pricing practice, cautious capital spending by customers as a result of factors including current economic uncertainties, industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any material, adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong; the sufficiency of recently announced restructuring actions; any negative developments associated with Nortel's suppliers and contract manufacturing agreements including our reliance on certain suppliers for key optical networking solutions components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Nortel's current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Nortel's efforts to expand internationally; potential additional valuation allowances for all or a portion of Nortel's deferred tax assets if market conditions deteriorate or future results of operations are less than expected; a failure to protect Nortel's intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; any negative effect of a failure to maintain integrity of Nortel's information systems; changes in regulation of the telecommunications industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy;(ii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of senior notes covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues; Nortel's below investment grade credit rating; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; or any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and any declines in the market price of Nortel's publicly traded securities; and (iii) risks and uncertainties relating to Nortel's prior restatements and related matters including: any negative impact on Nortel and NNL of such restatements; legal judgments, fines, penalties or settlements related to the ongoing criminal investigations of Nortel in the U.S. and Canada; the significant dilution of Nortel's existing equity positions resulting from the approval of its class action settlement; or any significant pending or future civil litigation actions not encompassed by Nortel's class action settlement. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

(2)This is a 3rd party link as described in our Web linking practices.

Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.

Contacts: Nortel Karen Monaghan (613) 763-1133 Email: kmonagha@nortel.com Website: www.nortel.com

Alvarion Ltd. Efrat Makov +972.3.645.6252 or (650) 314-2652 Email: efrat.makov@alvarion.com

Alvarion Ltd. Claudia Gatlin (212) 830-9080 Email: claudia.gatlin@alvarion.com Website: www.alvarion.com

SOURCE: Nortel

The agreement also covers the resale and interoperability testing of joint products, as well as the development of Alvarion's WiMAX base stations. Alvarion will be Nortel's exclusive supplier of WiMAX IEEE 802.16(e) 2X2/2X4 macro base stations.

Richard Lowe, president carrier networks at Nortel, said: "Early movers in the wireless broadband market are looking for high-quality, turnkey WiMAX solutions to deliver vast coverage in a cost-effective way. The joint offering includes Nortel services, ranging from network consulting, design, and deployment, to full network management."

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-- Record revenues of $67.2 million, up 29% from Q1 2007

-- Non-GAAP EPS of $0.03; GAAP loss per share of ($0.01)

-- Cash reserves increased to $148 million

-- Record WiMAX revenues of $40 million, up 58% from Q1 2007

-- Cumulative WiMAX shipments of $300 million

In the first quarter of 2008, revenues increased to $67.2 million, a 29% increase from $52.1 million in the first quarter of 2007, and a 1% increase from $66.3 million in the fourth quarter of 2007. BreezeMAX(R) revenues in Q1 2008 were approximately $40 million, or about 60% of total revenues, compared to about $36 million or about 55% of total revenues, in Q4.

GAAP net loss in the first quarter of 2008 was ($601,000), or ($0.01) per share, compared to a GAAP net loss of ($623,000), or ($0.01) per share, in Q1 of 2007, and GAAP net income of $12.4 million, or $0.19 per share, in Q4 2007, which included non-recurring other income of $8.3 million, representing mainly the additional consideration received from the sale of Alvarion's equity investment in LGC Wireless Inc. (LGC) and the promissory notes and $3.6 million of income from discontinued operations.

Excluding discontinued operations, amortization of acquired intangibles, stock based compensation expenses and other income, the company reported a non-GAAP net profit of $2.0 million, or $0.03 per diluted share, compared with a non-GAAP net profit of $1.3 million, or $0.02 per diluted share, in Q1 2007, and $3.1 million, or $0.05 per diluted share, in the fourth quarter of 2007. The sequential decline in net income was primarily the result of unfavorable currency exchange rates.

During Q1 2008, the company generated positive cash flow of approximately $9.2 million, of which about $8.8 million was received from ADC Telecommunications Inc. (ADC), representing the remainder of the payment of the LGC notes the company held as a result of selling the CMU unit to LGC. The payment followed the acquisition of LGC by ADC in Q4 of 2007. Cash reserves as of March 31, 2008 totaled approximately $148 million, up from about $139 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 Q1 2008 and the comparative periods.

Comments from Management

"We had a very good quarter demonstrating growth," said Tzvika Friedman, President and CEO of Alvarion. "Our team executed extremely well, and we achieved another quarter of record revenues, despite macro-economic conditions and seasonality. At the end of Q1, we had 225 commercial WiMAX deployments, which represent an important base of satisfied customers - many of them planning to expand their networks. In addition, we added several important new customers during the quarter, which demonstrates our ability to win, even as the competitive landscape changes. The higher level of business we are targeting will require a modest increase in certain operating expenses, and with the outlook for the dollar remaining weak, we will continue pursuing additional measures to further control costs in order to mitigate the impact."

"There are several factors increasing our confidence in the future," concluded Mr. Friedman. "Bookings in Q1 were strong and we see demand for WiMAX growing, our strategy is working, we have a better position in the market, and we have several important deal wins that will be reflected in our revenues in future quarters.

Q2 2008 Guidance

The company's revenue guidance for Q2 2008 is $67 to $71 million. Based on this revenue range, non-GAAP per share results for continuing operations are expected to range between $0.00 and $0.04 based on approximately 65.0 million of estimated weighted average number of diluted shares. GAAP per share results are expected to range between a loss of ($0.04) and $0.00.

Alvarion's management will host a conference call today, May 5, 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: USA: (800)-954-1051, International: +1-(415)-226-5355.

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 11:00 a.m. ET on May 5, 2008 through 11:59 p.m. ET on June 2, 2008. To access the replay, please call USA: (800) 633-8284, International: +1(402)-977-9140. To access the replay, users will need to enter the following code: 21378855.

                   ALVARION LTD. & ITS SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (*)
          U.S. dollars in thousands (except per share data)

                                    Three    Three    Three
                                    Months   Months   Months   Year
                                     Ended    Ended    Ended    ended
                                    March    March   December December
                                      31,      31,      31,      31,
                                   -------- -------- -------- --------
                                     2008     2007     2007     2007
                                   -------- -------- -------- --------

Sales                              $ 67,168 $ 52,077  $66,337 $236,573

Cost of sales                        34,343   25,801   33,998  118,861

                                   -------- -------- -------- --------
Gross profit                         32,825   26,276   32,339  117,712
                                   -------- -------- -------- --------

Operating expenses:
Research and development, net        15,113   11,774   13,818   51,389
Selling and marketing                14,654   12,644   14,968   55,943
General and administrative            4,613    3,913    3,780   15,426
Amortization of intangible assets       633      636      636    2,544


                                   -------- -------- -------- --------
Total Operating expenses             35,013   28,967   33,202  125,302
                                   -------- -------- -------- --------

Operating loss                      (2,188)  (2,691)    (863)  (7,590)

Other income                              -        -    8,265    8,265

Financial income, net                 1,587    1,632    1,395    6,453

                                   -------- -------- -------- --------
Income (Loss) from continuing
 operations                           (601)  (1,059)    8,797    7,128
                                   -------- -------- -------- --------

Income from discontinued
 operations, net                          -      436    3,609    5,413

                                   -------- -------- -------- --------
Net income (loss)                  $  (601) $  (623)  $12,406 $ 12,541
                                   -------- -------- -------- --------

Basic net earnings (loss) per
 share:
Continuing operations              $ (0.01) $ (0.02)  $  0.14 $   0.11
Discontinued operations            $      - $   0.01  $  0.06 $   0.09
Total                              $ (0.01) $ (0.01)  $  0.20 $   0.20
                                   ======== ======== ======== ========

Weighted average number of shares
 used in computing basic net
 earnings (loss) per share           63,058   61,767   62,989   62,345
                                   ======== ======== ======== ========

Diluted net earnings (loss) per
 share:
Continuing operations              $ (0.01) $ (0.02)  $  0.13 $   0.11
Discontinued operations            $      - $   0.01  $  0.06 $   0.08
Total                              $ (0.01) $ (0.01)  $  0.19 $   0.19
                                   ======== ======== ======== ========

Weighted average number of shares
 used in computing diluted net
 earnings (loss) per share           63,058   61,767   65,189   64,626
                                   ======== ======== ======== ========

(*) Results of Cellular Mobile Unit that was sold in November 2006, are classified as discontinued operations and are not included in the results from continuing operations.

                   ALVARION LTD. & ITS SUBSIDIARIES

                 DISCLOSURE OF NON-US GAAP NET INCOME

   FOR COMPARATIVE PURPOSES NET INCOME AND EARNINGS PER SHARE FROM
 CONTINUING OPERATIONS EXCLUDING AMORTIZATION OF ACQUIRED INTANGIBLES,
     STOCK BASED COMPENSATION EXPENSES, INCOME FROM DISCONTINUED
                      OPERATIONS AND OTHER INCOME

          U.S. dollars in thousands (except per share data)

                                     Three   Three    Three
                                      Months  Months  Months   Year
                                      Ended   Ended    Ended    ended
                                     March   March   December December
                                       31,     31,      31,      31,
                                     ------- ------- -------- --------
                                      2008    2007     2007     2007
                                     ------- ------- -------- --------

Net income (loss) according to US
 GAAP                                $ (601) $ (623) $ 12,406 $ 12,541

Amortization of acquired intangibles     633     636      636    2,544

Stock based compensation expenses
 related to SFAS 123R                  2,013   1,753    1,942    7,424

Income from discontinued operations        -   (436)  (3,609)  (5,413)

Other income                               -       -  (8,265)  (8,265)

                                     ------- ------- -------- --------
Net Income from continuing
 operations excluding amortization
 of acquired intangibles, deferred
 stock compensation, income from
 discontinued operations and other
 income                              $ 2,045 $ 1,330 $  3,110 $  8,831
                                     ======= ======= ======== ========

Basic net earnings per share from
 continuing operations excluding
 amortization of acquired
 intangibles, deferred stock
 compensation, income from
 discontinued operations and other
 income                              $  0.03 $  0.02 $   0.05 $   0.14
                                     ======= ======= ======== ========

Weighted average number of shares
 used in computing basic net
 earnings per share                   63,058  61,767   62,989   62,345
                                     ======= ======= ======== ========

Diluted net earnings per share from
 continuing operations excluding
 amortization of acquired
 intangibles, deferred stock
 compensation, income from
 discontinued operations and other
 income                              $  0.03 $  0.02 $   0.05 $   0.14
                                     ======= ======= ======== ========

Weighted average number of shares
 used in computing diluted net
 earnings per share                   64,532  63,942   65,189   64,626
                                     ======= ======= ======== ========

                   ALVARION LTD. & ITS SUBSIDIARIES
   RECONCILIATION BETWEEN GAAP TO NON-GAAP STATEMENT OF INCOME (*)
          U.S. dollars in thousands (except per share data)

                                Three Months              Three Months
                                    Ended                     Ended
                                 March 31,                December 31,
                                    2008                      2007
                       -----------------------------------------------
                         GAAP   Adjustments     Non-GAAP    Non-GAAP
                       -------- --------------- --------- ------------

Sales                  $ 67,168  $         -     $ 67,168  $    66,337

Cost of sales            34,343        (167)(a)    34,176       33,836

                       -------- ------------    --------- ------------
Gross profit             32,825          167       32,992       32,501
                       -------- ------------    --------- ------------

Operating expenses:
Research and
 development, net        15,113        (544)(a)    14,569       13,302
Selling and marketing    14,654        (505)(a)    14,149       14,509
General and
 administrative           4,613        (797)(a)     3,816        2,975
Amortization of
 intangible assets          633        (633)(b)         -            -


                       -------- ------------    --------- ------------
Total Operating
 expenses                35,013      (2,479)       32,534       30,786

                       -------- ------------    --------- ------------
Operating profit
 (loss)                 (2,188)        2,646          458        1,715

Financial income, net     1,587            -        1,587        1,395

                       -------- ------------    --------- ------------
Net income (loss) from
 continuing operations
 (a)                   $  (601)  $     2,646     $  2,045  $     3,110
                       -------- ------------    --------- ------------


Basic net earnings
 (loss) per share from
 continuing
 operations:           $ (0.01)                  $   0.03  $      0.05
                       ========                 ========= ============

Weighted average
 number of shares used
 in computing basic
 net earnings per
 share                   63,058                    63,058       62,989
                       ========                 ========= ============

Diluted net earnings
 per share from
 contiuing operations: $ (0.01)                  $   0.03  $      0.05
                       ========                 ========= ============

Weighted average
 number of shares used
 in computing diluted
 net earnings per
 share                   63,058                    64,532       65,189
                       ========                 ========= ============

(*) Results of Cellular Mobile Unit that was sold in November 2006, are classified in 2007 as discontinued operations and are not included in the results from continuing operations.

(a) The effect of stock-based compensation. The Company adopted the provisions of Statement of Financial Accounting Standards No. 123(R), "Share-Based Payment" on January 1, 2006 using the modified-prospective transition method.

(b) The effect of amortization of intangible assets.

                   ALVARION LTD. & ITS SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
                      U.S. dollars in thousands

                                              March 31,   December 31,
                                                 2008         2007
                                             ------------ ------------
          ASSETS
Cash, cash equivalents, short-term and long-
 term investments                             $   148,115  $   138,874
Trade receivables                                  34,564       31,224
Other accounts receivable                           7,777       16,250
Inventories                                        43,118       42,746
Severance pay fund                                 12,812       11,667

INVESTMENT IN AFFILIATES                              906          605

PROPERTY AND EQUIPMENT, NET                        14,089       13,078

GOODWILL AND OTHER INTANGIBLE ASSETS               58,066       58,699
                                             ------------ ------------

TOTAL ASSETS                                  $   319,447  $   313,143
-------------------------------------------- ============ ============

          LIABILITIES AND SHAREHOLDERS'
           EQUITY

CURRENT LIABILITIES

Trade payables                                $    28,951  $    24,091
Other accounts payable and accrued expenses        50,541       52,257
                                             ------------ ------------

Total current liabilities                          79,492       76,348
--------------------------------------------

ACCRUED SEVERANCE PAY                              18,031       16,242
                                             ------------ ------------

TOTAL LIABILITIES                                  97,523       92,590
--------------------------------------------

SHAREHOLDERS' EQUITY                              221,924      220,553
                                             ------------ ------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $   319,447  $   313,143
-------------------------------------------- ============ ============

                   ALVARION LTD.& ITS SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF CASH FLOWS
                      U.S. dollars in thousands

                                                            Three
                                                         Months ended
                                                        March 31, 2008
                                                        --------------

Cash flows from operating activities:
Net loss                                                 $       (601)
Adjustments to reconcile net loss to net cash used by
 operating activities:
Depreciation                                                     1,317
Stock based compensation expenses related to SFAS 123R           2,013
Amortization of intangibles assets                                 633
Increase in trade receivables                                  (3,340)
Increase in other accounts receivable and prepaid
 expenses                                                        (512)
Increase in inventories                                          (372)
Increase in trade payables                                       5,605
Decrease in other accounts payables and accrued
 expenses                                                      (1,716)
Accrued severance pay, net                                         644
                                                        --------------
Net cash provided by operating activities from
 continuing operations                                           3,671
                                                        ==============

Cash flows from investing activities:
Purchase of fixed assets                                       (3,073)
Proceeds from sale of investment                                 8,846
Investment in affiliates                                         (301)
                                                        --------------
Net cash provided by investing activities from
 continuing operations                                           5,472
                                                        ==============

Cash flows from financing activities:
Proceeds from exercise of employees' stock options                  98
                                                        --------------
Net cash provided by financing activities from
 continuing operations                                              98
                                                        ==============

Increase in cash, cash equivalents, short-term and
 long-term investments from continuing operations                9,241
                                                        ==============

Cash, cash equivalents, short-term and long-term
 investments at the beginning of the period                    138,874
                                                        --------------
Cash, cash equivalents, short-term and long-term
 investments at the end of the period                    $     148,115
                                                        ==============

About Alvarion

Alvarion is the largest WiMAX pure player, ensuring customer long-term success with fixed and mobile solutions for the full range of frequency bands. Based on its OPEN(TM) WiMAX strategy, the company offers superior wireless broadband infrastructure and an all-IP best-of-breed ecosystem in cooperation with its strategic partners. Alvarion boasts over 200 commercial WiMAX deployments worldwide.

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.

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Alvarion uses non-GAAP measures of net income, operating income and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity-based compensation charges in accordance with SFAS 123R, amortizations of intangibles and results of discontinued operations. Alvarion's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Alvarion's on-going operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.

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.

"WiMAX Forum" is a registered trademark of the WiMAX Forum. "WiMAX," the WiMAX Forum logo, "WiMAX Forum Certified" and the WiMAX Forum Certified logo are trademarks of the WiMAX Forum.

"Alvarion" and "BreezeMAX" are the registered trademarks of Alvarion Ltd.

"OPEN" is a trademark of Alvarion Ltd.

All other companies' names, products, services may be the properties of their respective owners.

SOURCE: Alvarion Ltd.

Alvarion Ltd.
Investor:
Efrat Makov, CFO
+972.3.645.6252
+1-650-314-2652
efrat.makov@alvarion.com
or
Claudia Gatlin, +1-212-830-9080
claudia.gatlin@alvarion.com
or
Press:
In the U.S.:
Heather Mills, +1-972-341-2512
hmills@golinharris.com
or
In the U.K.:
Bridget Fishleigh, 44.1273.305.936
bridget@nomadcomms.com

Talking about the contract, Don Price, Director Technology of Bharti Airtel said, "Our deployment with Alvarion, the largest WiMAX pure player, offers our customers long-term business success and guarantees advanced services at competitive prices. These products are specifically adapted to the technical requirements in India and offer extended coverage for leveraging the opportunities that the fast growing Indian market offers."

"This strategic agreement with Airtel reinforces our commitment to the key players in India," said Avinoam Barak, President of Broadband Wireless Access division of Alvarion. "We value our ongoing partnership with Airtel, a leading and innovative operator, very much. We are proud to be chosen to address the strong demand for primary broadband in one of the fastest growing economies in the world. Our early investment in the region allows us to offer highly-advanced and cost-effective solutions, tailored specifically for the local market, as part of our strategy to empower the emerging markets. This achievement proves again that our focused strategy makes us the preferred WiMAX vendor of choice and allows us to win against the other major competitors."

About Bharti Airtel Limited:

Bharti Airtel Limited, a group company of Bharti Enterprises, is India's leading integrated telecom services provider with an aggregate of over 69.15 million customers as of end of May 2008, consisting of 66.82 million mobile customers. Bharti Airtel has been rated among the best performing companies in the world in the BusinessWeek IT 100 list 2007.

Bharti Airtel is structured into three strategic business units - Mobile services, Telemedia services and Enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles. The Telemedia business provides broadband & telephone services in 94 cities and is foraying into the IPTV and DTH segments. The Enterprise business provides end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand. Airtel's high-speed optic fibre network currently spans over 73,787 kms covering all the major cities in the country. The company has two international landing stations in Chennai that connects two submarine cable systems - i2i to Singapore and SEA-ME-WE-4 to Europe. For more information, visit www.bhartiairtel.in.

About Alvarion

Alvarion is the largest WiMAX pure player, ensuring customers' long term success with fixed and mobile solutions for the full range of frequency bands. Based on its OPEN(TM) WiMAX strategy, the company offers superior wireless broadband infrastructure and an all-IP best-of-breed ecosystem in cooperation with its strategic partners. Alvarion boasts over 200 commercial WiMAX deployments worldwide (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: 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.

"WiMAX Forum" is a registered trademark of the WiMAX Forum. "WiMAX," the WiMAX Forum logo, "WiMAX Forum Certified" and the WiMAX Forum Certified logo are trademarks of the WiMAX Forum.

"Alvarion" "BreezeACCESS" and "BreezeMAX" are the registered trademarks of Alvarion Ltd.

"OPEN" is a trademark of Alvarion Ltd.

All other companies' names, products, services may be the properties of their respective owners.

SOURCE: Alvarion Ltd.

Alvarion Ltd.
Investors:
Efrat Makov, +972-3-645-6252
+1-650-314-2652
CFO
efrat.makov@alvarion.com
or
Claudia Gatlin, +1-212-830-9080
claudia.gatlin@alvarion.com
or
Press:
In the U.S.:
Heather Mills, +1-972-341-2512
hmills@golinharris.com
or
In the U.K.:
Bridget Fishleigh, 44-1273-305-936
bridget@nomadcomms.com
or
Bharti Airtel Limited
Vibha Gupta
vibha.gupta@airtel.in