Alvarion® Reports Q2 2009 Results

Tel-Aviv, Israel, July 29, 2009 — Alvarion Ltd. (NASDAQ:ALVR), the world’s leading provider of WiMAX™ and wireless broadband solutions, today announced financial results for the second quarter ended June, 30, 2009.

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).

About Alvarion
Alvarion (NASDAQ: ALVR) is the largest WiMAX pure-player with the most extensive WiMAX customer base and over 250 commercial deployments around the globe. Committed to growing the WiMAX market, the company offers solutions for a wide range of frequency bands supporting a variety of business cases. Through its OPEN WiMAX strategy, superior IP and OFDMA know-how, and ability to deploy end-to-end turnkey WiMAX projects, Alvarion is shaping the new wireless broadband experience (www.alvarion.com).