Strategic highlights include:

Several large deal wins not yet reflected in results

Expansion of the partnership with NSN

Progress in turnkey projects capabilities and deal wins

Expense reduction target achieved, further lowering breakeven level

Q2 Financial Highlights:

WiMAX shipments down 11% from Q2 2008 to $39.2 million

WiMAX revenues up 18% from Q2 2008 to $44.9 million

GAAP net loss of ($0.06); non-GAAP net loss of ($0.01)

In the second quarter of 2009, total revenues were $58.7 million, a decrease of 13% from $67.9 million in the first quarter of 2009, and a decrease of 16% from $69.7 million in the second quarter of 2008.

GAAP net loss in the second quarter of 2009 was ($4.0) million, or ($0.06) per share, including net charges of $1.7 million mainly in connection with the organizational changes implemented in April 2009, compared to net loss of ($852,000), or ($0.01) per share in Q1 2009. GAAP net loss in the second quarter of 2008 was ($812,000), or ($0.01) per share.

Excluding the amortization of intangibles, stock based compensation expenses, and net charges in Q2 2009, on a non-GAAP basis, the company reported a net loss in the second quarter of 2009 of approximately ($605,000), or ($0.01) per diluted share, compared with non-GAAP net income of $754,000, or $0.01 per diluted share in the first quarter of 2009, and non-GAAP net income of approximately $1.7 million, or $0.03 per diluted share in Q2 2008.

Cash used in operations was ($2.2) million. As of June 30, 2009, cash, cash equivalents and investments were $132 million. For supplemental information to facilitate evaluation of the impact of net charges and comparisons with historical results of operations, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q2 2009, and the comparative periods.

Comments from Management

"We are encouraged by the improvement in order intake during the second quarter as well as by several major strategic customer wins which we expect to translate into hundreds of millions of dollars in future revenues," said Tzvika Friedman, President and CEO of Alvarion. "We continued to reduce operating expenses and carefully manage our working capital in Q2, positioning the company for profit margin expansion when revenue growth resumes. We expect gradual improvement in profitability during the second half of 2009, accelerating next year.

Long-term growth drivers continue to support WiMAX demand. These include: low broadband penetration in many countries, continuing growth in demand for mobile computing in developed markets, improving operator business case due to declining cost and widespread availability and types of subscriber devices, and upcoming spectrum auctions in several key countries. We are pleased with the level of sales activity, and requests for proposals and new project opportunities are increasing, as governments around the world invest alongside private industry to encourage broadband availability and stimulate the economy. However, sales cycles remain quite long, and it is difficult to predict how rapidly these projects will move forward. After we win a deal, it takes time until we receive orders that are translated to shipments and, in turn, into revenues. Meanwhile, we believe that our industry position is very strong, and our determination to control costs and win more deals has never been stronger."

Q3 2009 Guidance.

The company's revenue guidance for Q3 2009 is from $53 to $63 million. Based on the indicated revenue range and, due to reduction in expenses, Q3 non-GAAP per share results are expected to range between a loss of ($0.06) and profit of $0.01. GAAP per share results are expected to range between a loss of ($0.09) and ($0.02).

Alvarion management will host a conference call today, July 29, at 9:00 a.m. Eastern time to discuss the quarter.

  Please call the following dial in number to participate:   USA: (800) 230-1093; International: +1-(612) 332-0107.      -------------------------------------------------------------------------------  

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 online broadcast will be available on the website.

A replay of the call will be available from 10:00 a.m. EDT on July 29, 2009 through 11:59 p.m. EDT on August 29, 2009.

  To access the replay, please call:                                           USA: (USA) (800) 475-6701;                                                   International: +1(320) 365-3844.                                             To access the replay, users will need to enter the following code: 106462.    -------------------------------------------------------------------------------  

Alvarion has scheduled dates for the earnings announcements during 2009 and this schedule is available on the website at http://www.alvarion.com/investors/earnings/.

  ALVARION LTD. & ITS SUBSIDIARIES                                                                                                                                         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                          U.S. dollars in thousands (except per share data)                                                                                                                                                                                                                                                                                                                                                                                   Six               Six               Three             Three             Three                                                                                            Months Ended      Months Ended      Months Ended      Months Ended      Months Ended                                                                                     June 30,          June 30,          June 30,          June 30,          March 31,                                                                                        2009              2008              2009              2008              2009                                                                                                                                                                                    Sales                                                                          $  126,615        $  136,908        $  58,741         $  69,740         $  67,874                                                                                                                                                                                  Cost of sales                                                                     69,327            69,934            32,089            35,591            37,238                                                                                                                                                                                  Gross profit                                                                      57,288            66,974            26,652            34,149            30,636                                                                                                                                                                                  Operating expenses:                                                                                                                                                      Research and development, net                                                     27,419            30,904            12,779            15,791            14,640         Selling and marketing                                                             26,341            29,559            12,970            14,905            13,371         General and administrative                                                        7,746             9,309             3,723             4,696             4,023          Amortization of intangible assets                                                 66                1,266             33                633               33             Restructuring and other related expenses (*)                                      919                                 919                                 -                                                                                                                                                                                                                                                                                                                                                                Total Operating expenses                                                          62,491            71,038            30,424            36,025            32,067                                                                                                                                                                                  Operating loss                                                                    (5,203   )        (4,064   )        (3,772  )         (1,876  )         (1,431  )                                                                                                                                                                               Other loss                                                                        (749     )        -                 (749    )         -                 -                                                                                                                                                                                       Financial income, net                                                             1,097             2,651             518               1,064             579                                                                                                                                                                                     Net loss                                                                          (4,855   )        (1,413   )        (4,003  )         (812    )         (852    )                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Basic net loss per share:                                                      $  (0.08    )     $  (0.02    )     $  (0.06   )      $  (0.01   )      $  (0.01   )                                                                                                                                                                               Weighted average number of sharesused in computing basic net loss per share       61,971            63,099            61,995            63,140            61,948                                                                                                                                                                                  Diluted net loss per share:                                                                                                                                                                                                                             $  (0.08    )     $  (0.02    )     $  (0.06   )      $  (0.01   )      $  (0.01   )                                                                                                                                                                               Weighted average number of sharesused in computing diluted net lossper share      61,971            63,099            61,995            63,140            61,948                                                                                                                                                                                                                                                                                                                                                           (*) Results of the organizational change implemented in April 2009.                                                                                                       -------------------------------------------------------------------------------  

  ALVARION LTD. & ITS SUBSIDIARIES                                                                                                                                                                                                         RECONCILIATION BETWEEN GAAP TO NON-GAAP STATEMENT OF INCOME                                                                                                                                                                              U.S.