BreezeMAX® Extreme Software Release 1.7 Update February 2011

Disclaimer This presentation 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 a number of 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: potential impact on our business of the current global recession, 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;, Alvarion’s 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 the Alvarion’s strategic initiatives to enable Alvarion to more effectively capitalize on market opportunities as anticipated;  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; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission. The information in this presentation 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 presentation, and specifically disclaims any express or implied warranties of merchantability or fitness for any particular purpose Copyright 2011 Alvarion Ltd. All rights reserved. Alvarion®, its logo and all names, product and service names referenced herein are either registered trademarks, trademarks, tradenames or service marks of Alvarion Ltd in certain jurisdictions. All other names are or may be the trademarks of their respective owners. The content herein is subject to change without further notice. “WiMAX Forum” is a registered trademark of the WiMAX Forum. “WiMAX,” the WiMAX Forum logo, “WiMAX Forum Certified” and the WiMAX Forum Certified logo are trademarks of the WiMAX Forum.

Agenda BreezeMAX Extreme Main Messages Release 1.7 Highlights BreezeMAX Extreme Promotion 3

BreezeMAX Extreme Meets the Challenge Carrier Class WiMAX™ 16e Solution For the 5 GHz license-exempt, 3.6 GHz licensed and 3.65 GHz Rural America bands All Outdoor All-in-one, all-outdoor solution for rapid deployment and profitable up & go services WiMAX 16e Quality-of-Service Full traffic control for enhanced and swift delivery of triple-play services Interference Resistant Powerful interference mitigation techniques for overcoming license-exempt frequency challenges and obstacles Broadband Anywhere Efficient delivery of broadband connectivity to any environment Carrier Class WiMAX 16e Solution Carrier-Class Mobile WiMAX 16e, NOW a Reality for the 5 GHz License Exempt Market Bringing state of the art standardized technology to the license exempt market Defining WiMAX 16e as your path to interoperability & certification, driven by the WiMAX forum Enabling eco-systems to benefit from WiMAX 16e economy of scale Offering environmental friendly products Carrier-Class Mobile WiMAX 16e, NOW available for Rural America in the 3.65 GHz Semi-Licensed band All-in-One, All Outdoor Solution for Profitable Up & Go Services Reducing CAPEX and OPEX for low cost of ownership and fast ROI Offering an all-in-one solution by integrating the BTS, Antenna, ASN Gateway and GPS receiver Supporting a fully outdoor and easy to deploy solution Enabling flexible installations that cover communication towers, rooftops, street light poles with diverse power feeding and backhaul and antenna options Providing a variety of configurations to meet various deployment needs: single sector or dual sector maximizing capacity or coverage Leverage WiMAX 16e Quality of Service for Enhanced & Swift Delivery of Triple Play Services Benefit from inherited WiMAX QoS to simultaneously support multiple applications using service differentiation Supporting real-time triple play (voice, video and data) and non real-time applications simultaneously Extend your application offering to business, residential access and carrier of carriers over the same radio access network Powerful Interference Mitigation Techniques Overcoming all Obstacles Intensifying the Mobile WiMAX 16e to best-fit License Exempt deployments MIMO A/B, STC and MRC advanced antenna techniques in both CPE and BST HARQ - state of the art error correction coding techniques Best none line of sight with SOFDMA and up to 1024 FFT size DFS (dynamic frequency selection) and AFS (automatic frequency selection) support Designed to fit: Efficient delivery of broadband applications to any environment Supporting unmatched sector capacity & coverage for best implementation of fixed, nomadic and mobile applications for rural and urban deployments Supporting multiple applications such as voice, internet access, video surveillance, data access, public safety and enterprises Providing single and dual sectors to maximize on capacity or coverage Offering true flexibility, start with what you need and grow as you go Maintaining low entry price options Assuring a very small footprint

Introducing BreezeMAX Extreme Family First WiMAX 16e in 5 GHz Extreme 3650 WiMAX 16e for Rural America Extreme 3600 WiMAX 16e for 3.6-3.8 GHz New! 3650 5000 3600 5.9 3.6 3.8 4.9 3.7

Release 1.7 Feature Highlights (1/5) New BreezeMAX Extreme 3600 supporting 3.6-3.8 GHz New HW platform Support for new regions and applications Code enhancements for improved product operation Increased product reliability and robustness  Enhanced support for video traffic Embedded SW client to maximize video performance over the air Leveraged WiMAX access to improve video stream quality  

Release 1.7 Feature Highlights (2/5) Increased operator benefits with optimized downlink/uplink ratio 35:65 TDD for video surveillance and high-capacity uplink applications* 60:40 TDD (default) for general access and common deployment 75:25 TDD for rich media downlink application*   Downlink Uplink Downlink Uplink Downlink Uplink 35 60 75 65 25 60 As supported today – Common access deployment (default) 40 For uplink-oriented applications For intense downlink oriented applications * In a future release of PRO 3000 for Extreme 3600/3650

Release 1.7 Feature Highlights (3/5) Improved voice quality High quality voice and mixed application traffic support New: Supporting service classification based on DSCP over PPPoE* Dynamic maximized throughput New DLA (Dynamic Link Adaptation) option DLA 1 (default) – an agile mechanism aiming to maximize capacity (modulation) at any given time DLA 2 (new) – a more conservative rate adaptation for minimizing packet errors * In a future release of PRO 3000 for Extreme 3600/3650

Release 1.7 Feature Highlights (4/5)  Enhanced system configuration options “TCP Enhancer” - Ability to prioritize TCP ACKs in order to improve convergence of TCP algorithm over WiMAX AAA keep-alive timeout – Increased network stability and prevents AAA  ASN connectivity loss on over-loaded backbone  New CPE support for Extreme 36XX USB dongle: IOT with Seowon for nomadic and indoor usage Indoor Self-install (Si): IOT with Indoor Si* * In a future release

Release 1.7 Feature Highlights (5/5) Integration with Alvarion NG-VG (Networking & Voice Gateway) Optional indoor voice gateway, supporting 2XFXS lines for POTS Supporting 3 VLANS (Data, Voice, management) Outstanding voice performance with voice QoS Unified management for BreezeMAX Extreme CPE’s and NG-VG NG-VG Power the ODU (Outdoor unit CPE) Easy management of BreezeMAX Wi2 and other WiFi devices Easily managed over WiMAX networks Separate VLAN to manage WiFi controllers and APs A new VLAN classifier 4096

BreezeMAX Extreme Promotions ACTC Promotion $500 Co-op for marketing activities when promoting BreezeMAX Extreme courses For each BreezeMAX Extreme course held by an ACTC, get a BreezeMAX Extreme BST for unlimited SUs at the price of a BST for 20 SUs Partner Promotion 3.X GHz: buy a BreezeMAX Extreme BST 3600/3650 10 MHz and get a SW upgrade to 20MHz (10+10) for free 5.X GHz: get more capacity on your SU for free Buy XTRM SU-2 get SU-6 Buy XTRM SU-6 get SU-UL

Q&A

Thank You 13 13

Appendix

BreezeMAX Extreme Specifications (1/3) PHY OFDMA, WiMAX 802.16e Wave 2 compliant Diversity 2x2, MIMO A+B, MRC Model SISO  MIMO Dual SISO Frequency Band 4.90 - 5.35 GHz, 5.47 - 5.95 GHz 3.65 – 3.70 GHz 3.60 – 3.80 GHz Channel Bandwidth 5, 10, 20* (2x10) MHz 5, 7, 10 7+7*, 10+10* MHz Max Tx Power 21dBm 30dBm Antenna Integrated 90DS, 14.5dBi 90DS, 13dBi External 90DS, 60V, 90V, 120V, 360V 65DS, 90DS, 60V, 90V, 360V Performance Max Range 39 km Capacity > 80 Mbps (MIMO B, 10+10) > 40 Mbps (MIMO A / SISO, 10+10) Enhanced Capabilities Spectrum Analyzer, DFS, DCS Spectrum Analyzer * Licensed feature

BreezeMAX Extreme Specifications (2/3) Networking Max SUs 250 SUs per BTS DHCP Transparent, Relay (opt. 82), Server Authentication Local provisioning (no AAA), centralized (AAA, Radius) ASN-GW Integrated distributed ASN, or external ASN (R6) Eth. CS  IP CS QoS BE, nRT, RT*, UGS*, eRT Security EAP-TTLS, PKMv2, MSCHAP Authentication, WiMAX 16e AES128 encryption Power Consumption Up to 57W Up to 91W Feed: PoE Feed: 48V DC Backhaul Eth./optional PoE for backhaul CPE GPS Integrated receiver in BTS/GPS chaining Dimensions 51 x 28 x 15 cm, 11 kg (mounting: + 5 kg) * In future releases

BreezeMAX Extreme Specifications (3/3) Interoperability & Ecosystem PHY WiMAX 16e Wave 2 compliant CPE PRO 5000 (A) PRO 5000 (E) PRO 3000 (A) PRO 1000 (A) PRO 1000 (E) SI 1000 Seowon USB** SI* Seowon USB ASN-GW Integrated ASN-GW (distributed architecture) 4Motion® Mini Centralized ASN AAA FreeRadius Radiator Alepo BridgeWater Aradial * In future releases ** Pending FCC certification process