Alvarion to Sell Its Carrier Licensed Division to Telrad Networks

  Alvarion to Sell Its Carrier Licensed Division to Telrad Networks

  Division’s newest product, the BreezeCOMPACT, is a unique small footprint
      solution offering significant OPEX and CAPEX savings to operators

Business Wire

TEL AVIV, Israel -- February 21, 2013

Alvarion^® Ltd.  (NASDAQ: ALVR), a global provider of optimized wireless
broadband solutions addressing the connectivity, coverage and capacity
challenges of public and private networks, has entered into a definitive
agreement with Telrad Networks, a leading international provider of innovative
telecommunication solutions, pursuant to which Telrad Networks will acquire
Alvarion’s carrier licensed division. The consideration in the transaction
will be $6.1 million. In addition, Alvarion may receive certain
performance-based milestone payments of up to $6 million.

“We at Telrad are very excited to integrate Alvarion’s carrier licensed
division as a core growth engine for our business,” said Ran Bukshpan, CEO,
Telrad Networks. “We believe that Alvarion’s broadband wireless access
portfolio will become a significant building block in Telrad’s future. We are
committed to the ongoing innovation of the BreezeCOMPACT family and have plans
to continue investing in this platform, including TD-LTE Advanced
capabilities. Telrad is dedicated to continue serving Alvarion’s impressive
customer base, and we welcome the Alvarion employees who will join the Telrad
family as part of this acquisition. Together we can successfully execute the
growth plans we have for Telrad.”

Alvarion’s carrier licensed business started over 15 years ago and has amassed
extensive commercial, technological and operational experience and know-how.
Its most recent product offering – the BreezeCOMPACT family – offers a unique
single-box architecture, all-outdoor chassis, small footprint and lower
installation costs. The single-box architecture reduces OPEX and CAPEX by
providing true macro base station performance in an optimized
all-outdoor/all-in-one small form factor. The BreezeCOMPACT is TD-LTE
Advanced-ready with a software upgrade. Launched during the second quarter of
2012, the BreezeCOMPACT has been successfully deployed by tier one and tier
two operators in Latin America, Eastern Europe and Africa.

“We believe that this transaction is in the best interest of our shareholders,
our carrier licensed business, our customers and our employees. Telrad’s
intention with respect to future investments, particularly the development of
TD-LTE Advanced capabilities for the BreezeCOMPACT, will enable them to offer
our customers cutting edge technologies and provide the optimum solutions and
service,” said Hezi Lapid, President and CEO, Alvarion. “Following today’s
announcement we will now focus our business on carrier-grade solutions in the
unlicensed frequencies. This new focus will allow us to concentrate our
resources and attention on our target markets and on successfully completing
our turnaround plan.”

Alvarion and Telrad Networks have also agreed to sign a reseller agreement
according to which Alvarion will continue to provide carrier licensed
solutions to its partners and distributors and Telrad will provide Alvarion’s
unlicensed solutions to its carrier customers after the transaction is
completed.

Consummation of the transaction is subject to certain closing conditions and
is expected to occur during the second quarter of 2013.

Yigal Arnon & Co. served as Telrad’s legal counsel and Meitar Liquornik Geva
Leshem Tal served as Alvarion’s legal counsel.

About Telrad Networks

Telrad Networks provides innovative telecom equipment, solutions and services
which facilitate communications between millions of end-users worldwide.
Combining technological expertise with a dedication to customer service,
Telrad provides provisioning, implementation and management for over 100
leading global telecom operators and major enterprises. Telrad Networks
operates in over 30 countries, with regional headquarters in the Americas,
Europe, Asia and Africa. Telrad Networks is owned by private equity fund
Fortissimo Capital. (www.telrad.com)

About Fortissimo Capital:

Fortissimo Capital, headquartered in Israel, is a group of private equity
funds with nearly $500 million under management that invests in global
technology companies that require capital to expand their business. Fortissimo
Capital is a long term investor and seeks to partner with management to
facilitate growth and maximize value. Fortissimo is backed by leading
financial institutions including insurance companies, banks and pension funds.
Fortissimo has successfully exited several of its portfolio companies,
including selling NUR Macroprinters (Nasdaq: NURM) to HP (NYSE: HPQ) for $123
million, selling Cadent to Align Technologies (Nasdaq: ALGN) for $190 million,
selling AOD Software to a USA private equity firm, and the IPO of SodaStream
(Nasdaq: SODA) and selling its holdings at a valuation of $800 million. The
partners in the fund are: Yuval Cohen (founding and managing partner), Eli
Blatt, Shmoulik Barashi, Marc Lesnick, Yochai Hacohen and Yoav Hineman.
(www.ffcapital.com)

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.

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. Alvarion assumes no
responsibility with respect to any forward looking statements made by Telrad
herein.

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 U.S.
Securities and Exchange Commission, which this press release will be a part
of.

The information in this press release is provided solely for information
purposes, and is not a commitment, promise or legal obligation to deliver any
products, features and/or functionalities, and should not be relied upon in
making purchasing decisions. The development, release and timing of any
products, features and/or functionalities described remains at the sole
discretion of Alvarion. If and when any products, features and/or
functionalities are offered for sale by Alvarion, they will be sold under
agreed upon terms and conditions. This information may not be incorporated
into any contractual agreement with Alvarion or its subsidiaries or
affiliates. Alvarion makes no representations or warranties with respect to
the contents of this press release, and specifically disclaims any express or
implied warranties of merchantability or fitness for any particular purpose.

To receive Alvarion's press releases please contact Sivan Farfuri,
sivan.farfuri@alvarion.com or +972.3.767.4333. Please see the Investor section
of the Alvarion website for more information:
http://www.alvarion.com/investors.

Alvarion®, its logo and certain names, product and service names referenced
herein are either registered trademarks, trademarks, trade names or service
marks of Alvarion Ltd. in certain jurisdictions. All other names are or may be
the trademarks of their respective owners.

Contact:

Alvarion Investor Contacts:
Avi Stern, CFO
+972.3.767.4333
avi.stern@alvarion.com
or
Elana Holzman, VP IR
+972.3.645.9872
elana.holzman@alvarion.com
or
Press Contacts:
For Alvarion: John Conrad
+1.703.390.1538
conrad@merrittgrp.com
or
For Telrad: Heidi Eisips
+1.408.568.3105
heidi@koralaconsulting.com
 
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