© Copyright Alvarion Ltd. The Reality of Mobile Wimax Ofer Peled Strategic Account Manager

Confidential Information Agenda 1.Alvarion at a glance 2.Alvarion’s WiMAX Vision & Road Map 3.WiMAX Market Trends & Evolution 4.WiMAX Deployment Examples in Europe

Confidential Information Alvarion At a Glance Established: 1992 Employees: 900 with ~400 in R&D Industry consolidator BreezeCOM+ Floware + InnoWave + interWAVE Finalized acquisition of interWAVE Dec 2004 Global solutions provider of three metro wireless technologies: broadband wireless access, WLL and cellular Local presence in 24 locations: Australia, Brazil, China, Czech Republic, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Mexico, Nigeria, Philippines, Poland, Romania, Russia, Singapore, South Africa, Spain, UK, Uruguay, USA (California and Florida)

Confidential Information At a Glance Worldwide leader in wireless access Over 30% market share of global BWA market Largest installed base - over 2,000,000 units deployed in more than 130 countries Forefront of wireless standards & leadership from to e Diversified customer base & outstanding partner network including Alcatel, Lucent, Siemens, Nera, and over 200 local partners Strong financial position 3-year revenue CAGR of 30% Around $127M in cash

Confidential Information Alvarion’s WiMAX Vision Road Map 2004  Licensed and Licensed and License-exempt License-exempt Spectrum: Spectrum: 2GHz – 6GHz 2GHz – 6GHz Fixed outdoor Fixed outdoor Subscribers Subscribers National Operators, National Operators, Competitive Carriers Competitive Carriers and ISPs. and ISPs. Target subscribers: Target subscribers: - Residential users - Enterprises Voice, Data & leased Voice, Data & leased line services line services Fixed BWA 2006  Licensed spectrum Licensed spectrum Fixed, Self-Installed Fixed, Self-Installed CPEs, Portable CPEs CPEs, Portable CPEs Fixed Network Operators, Mobile Network Operators, Competitive Carriers & ISPs Fixed Network Operators, Mobile Network Operators, Competitive Carriers & ISPs Target subscribers: Target subscribers: - Residential users - Enterprises - Business users Voice & Data Voice & Data services services Portable BWA 2007  Licensed spectrum Licensed spectrum Mobile Subscribers Mobile Subscribers - PCMCIA cards - Embedded WiMAX chip (Notebooks, PDAs) Fixed Network Operators, Mobile Network Operators & Competitive Carriers Fixed Network Operators, Mobile Network Operators & Competitive Carriers Target subscribers: - Residential users - Business users Voice & Data Voice & Data Services Services Mobile BWA Product Availability

Confidential Information WiMAX Network Models & Time Frames Fixed Outdoor Backhaul Wi-Fi Hotspot Fixed 2005Portable 2006Mobile 2007/8+ Metrozone Nomadic Fixed Indoor Mobile

Confidential Information Fixed WiMAX Deployment Scenario 10 – 20 Km Geography: Typical in non-dense suburban and rural areas Deployment pattern: Large-sized cells with maximum area coverage Services: Traditional Wireless xDSL data + voice CPE types: Mix of outdoor and indoor CPEs

Confidential Information Fixed WiMAX Solution Components High performance, scalable BST architecture Variety of CPE options: Data, Voice, WiFi Radio performance is a key factor that will influence network performance and operator business case

Confidential Information Coverage Analysis Example Radio Planning Example: Area dimensions: 130km by 96 km No. of Possible sites: 62 possible locations Available frequency bandwidth: 14Mhz Analysis parameters: 4 Sector base station Propagation model: knife-edge

Confidential Information Coverage Analysis Example BreezeMAX 11 base stations Spectral efficiency: 3.24b/s/Hz Avg. sector capacity: 11.3 Mbps Other WiMAX 28 base stations Spectral efficiency: 3.0b/s/Hz Avg. sector capacity: 10.6 Mbps

Confidential Information Portable WiMAX Deployment Scenario 1 – 4 Km Geography: Typical in high-dense suburban/urban Deployment pattern: Small-sized cells with selective coverage (hot zones) Services: Fixed and portable CPE types: Indoor (self-install) CPEs and portable devices (Laptops)

Confidential Information Portable WiMAX Solution Fundamentals Compact indoor self install CPE devices Increased System Gain through: High power BST radios Diversity and smart antenna techniques Uplink sub channlization CPE with Intelligent Fast Switching Antennas

Confidential Information Base Station Coverage Analysis In Portable Deployment Scenario every dB counts! Space diversity Sub channelization

Confidential Information BreezeMAX Deployments 2005 BreezeMAX networks deployed with over 100 operators in over 30 countries, 11 networks in Italy

Confidential Information Characteristics of Deployment for Europe Most advance geography in WiMAX adoption (West, North, Central and Eastern Europe) Alternative Operators building now large commercial networks Serving business and residential users with broadband data and voice services Targeting mass residential market with portable WiMAX Example: WiMAX Telecom deployment of BreezeMAX 3500 in Austria Incumbent Operators in process of evaluating WiMAX as complementary standard based broadband solution to DSL. Example: T-Com trial using Alvarion BreezeMAX 3500 solution taking place near Bonn. Activity planned to run until March 2006

Confidential Information 16 Spanish alternative carrier Main investors – El Corte Ingles, Prisa Group Granted nationwide license for 3.5GHz network Chose Alvarion’s WALKair 1000 for multi-service BWA to high-end SMEs in 72 cities Started expansion network to provide broadband to rural and suburban areas in Andalusia + Catalonia Chose Alvarion’s BreezeMAX WiMAX- ready platform to deliver multiple services to both business and residential markets Spain Iberbanda – Access CLEC

Confidential Information Iberbanda – Access CLEC Deployment Status: Main deployment areas: Andalusia Catalonia 200 BST’s deployed and operational ~10,000 CPE installed Starting to roll out BreezeMAX PRO (Intel) Spain

Confidential Information Iberbanda – Access CLEC

Confidential Information Altitude Telecom - Wireless CLEC First WiMAX-ready network in France operating in 3.5GHz Offers data and VoIP services to SME & businesses Altitude will target residential customers in France

Confidential Information Altitude Telecom - Wireless CLEC Deployment Status: 50 BST’s deployed in Western France (Vende & Orne) Target for 100 BST’s by end of 2005 France

Confidential Information Altitude Telecom BST Installation France

Confidential Information Summary 20 th Century was for wireline; 21 st Century is for wireless … and Alvarion will lead the market to widespread adoption of WiMAX standard solutions. BWA is Becoming a Mainstream Access Technology Third leg of the Access Stool with DSL, Cable WiMAX Standards Accelerating BWA Adoption Hole filling by ILECs, Network Building by CLECs WiMAX also Leads to Portable and Mobile Solutions Customers are deploying WiMAX-Ready Systems now Alvarion is leading the fixed market and will leverage this position to benefit from the opportunity in mobile WIMAX

Confidential Information Thank You We take pride in our leading wireless broadband operators Ofer Peled Strategic Account Manager