Alvarion (ALVR) and Consortium of Partners Successfully Demonstrate BuNGee Project

Alvarion^®Ltd. (NASDAQ: ALVR), a global provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, today announced the successful completion of the BuNGee project following a final review meeting with the European Commission in Brussels. This is subsequent to a successful demonstration held in Tel Aviv in April 2012 showing the project’s main goals, including higher throughput, innovative deployment strategies and an economically viable business case.

BuNGee has been established with objectives to dramatically improve the overall infrastructure capacity density of the mobile network by tenfold, and at the same time, at a commercially viable cost – thereby removing the barriers to beyond next generation network deployments. Such a requirement for capacity density is driven mainly in urban areas where the number of users per square kilometer and the mobile data usage factor is dramatically growing. At the live demonstration, Alvarion and the consortium partners successfully demonstrated the project-developed high capacity radio cell prototype in a real urban mobile environment.

BuNGee (Beyond Next Generation Mobile Networks) is a European Commission Seventh Framework Programme (FP7) funded project for the research of innovative technologies and deployment topologies. The selected consortium for the project is comprised of a network operator, equipment and antenna vendors, research institutes, universities and a consulting firm who are committed to achieve the goals serving as a baseline for beyond next generation ultra-high capacity systems. Alvarion is the coordinator of this project with a leading role in designing the innovative system architecture.

“Viewing the live demonstration at Alvarion’s offices was the culmination of the project we envisaged,” states Alister Burr, Professor of Communications in the University of York and one of the BuNGee work package leaders. “The demonstration and the completion of the project mark a very significant step forward in the implementation of next generation wireless networks.”

The current next-generation technologies LTE and WiMAX support a mere 100 Mbps per square kilometer in a regular cellular deployment. In dense urban areas, where the market demand for wireless broadband access is the highest, the BuNGee project demonstrated a higher throughput of 1 Gbps per square kilometer. This demonstration was imperative in confirming a commercially viable solution for wide-scale uptake of next generation technologies.

The successful demonstration of BuNGee took place in a dense urban high-tech industrial park around Alvarion’s offices in Tel Aviv, Israel, on April 17, 2012, before reviewers on behalf of the European Commission, substantiating several fundamental goals in ultra-high capacity technology and designs:

• High-capacity 4G mobile Radio Access Network (RAN) architecture that is cost-, spectrum- and energy- efficient
• Ultra-dense below-rooftop radio network deployment, exploiting the concept of small cells and natural urban radio isolations
• Joint design of access and backhaul networks using heterogeneous radio elements in licensed and license-exempt (LE) spectrum, including aggregation of in-band backhauling and broadband mmWave to address small cells backhauling issues
• Innovative antenna technologies, such as Multi-beam antenna tailored to urban ultra-high capacity needs and advanced MIMO and interference elimination techniques, such as e.g. multi-beam antenna assisted MIMO
• Co-operative technologies at a base station, cognitive radio, autonomous radio resource assignment and network technologies for reduced management and operational complexity

“Viewing the live demonstration at Alvarion’s office in April was the necessary proof-point for the successful close to this project,” states Oleg Marinchenco, BuNGee Project Coordinator from Alvarion. “With BuNGee, we have taken great steps in the implementation of next generation networks for the entire communications market.”

“We were pleased to act as the coordinator of this esteemed project and to host the interim review meetings and live demonstration at Alvarion’s premises,” states Mark Altshuller, CTO, BWA Division, Alvarion. “Alvarion has always been at the forefront of technology innovations and we are extremely proud to be part of this distinguished consortium that will deliver the next generation of mobile broadband to the market.”

Consortium members include: Alvarion (IL), ARTTIC (BE), Centre Tecnologic de Telecomunicacions de Catalunya (ES), Cobham Antenna Systems Microwave Antennas (UK), University of York (UK), Thales Communications & Security (FR), Universite Catholique de Louvain (BE), Polska Telefonia Cyfrowa (PL), Siklu Communication Ltd (IL).

Media Resources

European Commission, FP7, Next Generation Mobile Broadband, BuNGee,

Links

BuNGee Project web site: http://www.ict-bungee.eu/

BuNGee – Next Generation Mobile Broadband

European Commission FP7: http://cordis.europa.eu/fp7/home_en.html

About Alvarion

Alvarion Ltd. (NASDAQ: ALVR) provides optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of telecom operators, smart cities, security, and enterprise customers. Our innovative solutions are based on multiple technologies across licensed and unlicensed spectrums. (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 various 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: our failure to fully implement our 2012 turnaround plan, our inability to reallocate our resources and rationalize our business in a more efficient manner, potential impact on our business of the current global macro-economic uncertainties, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in 4G license allocation in certain countries; the failure of the products for the 4G market to develop as anticipated; our inability to capture market share in the expected growth of the 4G market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of our strategic initiatives to enable us to more effectively capitalize on market opportunities as anticipated; delays in the receipt of orders from customers and in the delivery by us of such orders; our failure to fully and effectively integrate the business and technology of Wavion Inc., acquired by us in November 2011, into our products and realize the expected synergies from the acquisition; the failure of the markets for our (including Wavion’s) products to grow as anticipated; our 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; our inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers; our inability to comply with covenants included in our financing agreements; our inability to raise sufficient funds to continue our operations, either through equity issuances or asset sales; and other risks detailed from time to time in the Company’s annual reports on Form 20-F as well as in other filings with the U.S. Securities and Exchange Commission.

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