1. © Copyright Alvarion Ltd. Proprietary Information Investor Presentation Eran Gorev Q2 2010

2. 2 Proprietary Information 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 economic crisis; the failure of the market for 4G products 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, services provisioning, marketing or manufacturing objectives; 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 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. Safe Harbor

3. 3 Proprietary Information Alvarion: Wireless Broadband Leader OPEN Architecture Full scale end-to-end 4G portfolio Turnkey project execution Advanced IOT capabilities Tailored solutions for emerging markets and underserved areas

4. 4 Proprietary Information Demand for Broadband Driving Growth Wide variations within regions Korea 97% India <1% Emerging regions: where wireline infrastructure is lacking Depends on availability of affordable devices Requires cost-effective, scalable infrastructure Developed countries: still many underserved areas; wireless broadband replacing fixed Urban/suburban/rural areas where coverage or service is poor FCC says 15-20M U.S. citizens lack broadband Italy has 60% PC penetration but only 40% broadband penetration Subscribers giving up wired connection in favor of wireless for “nomadic” benefits Broadband Penetration (% HH) *Source: BofA-ML, May 2010

5. Proprietary Information 5 Mobile Data Explosion Driving Growth Mobile video main driver: video will be >60% of mobile data traffic by 2014 Large screen devices (netbooks, notebooks, tablets) will account for >70% of mobile data traffic in 2014 Smartphone growth will also contribute New devices (tablets, video cameras, e-readers) will drive demand for mobile broadband = X 100 Mobile Data Traffic Growing >100% CAGR (TB per months) *Source: Cisco 2010

6. 6 Proprietary Information Wireless broadband is a key enabler for a “connected planet” New Applications Driving Growth Public Safety Municipalities, Schools & Libraries Smart Grid Video Surveillance

7. Proprietary Information 7 Technology Choice Depends on Spectrum Primary Regions Frequency NA (VZ, ATT)700 MHz APAC800 MHz APAC900 MHz NA, APAC1.7 GHz APAC1.8 GHz NA, APAC1.9-2.1 GHz NA, APAC 2.3 GHz NA, APAC 2.5 GHz Europe, APAC2.6 GHz * EMEA, LATAM3.5 GHz TDD = Time Division Duplex Same frequency at different time UL/DL DL UL FDD = Frequency Division Duplex Different frequency at same time LTE to be deployed first by mobile operators in FDD spectrum (2/3G frequencies) * not allocated in Europe – may also include TDD

8. Proprietary Information 8 TDD Equipment: Large, Growing Market China expected to represent 25-35% of total market in 2012-2014 RAN Infrastructure for TDD spectrum growing at ~35% CAGR Excluding China, CAGR is 25%+ ($ in millions) *Source: Dell’Oro and Alvarion

9. 9 Proprietary Information Alvarion: Experience and Innovation Technology Pioneer Over 15 years of OFDM and IP innovation Major contributor to IEEE 802.16 and WiMAX standards Founder of WiMAX Forum® History of innovation and first to market True IP wireless broadband since 1999 Largest base station portfolio Customized solutions for vertical applications Global presence Over 290 networks in 150+ countries Over 20 local offices around the world Over 200 local partners

10. 10 Proprietary Information Comprehensive RAN Portfolio for Diverse Requirements BreezeMAX® Extreme BreezeMAX Macro Indoor Suburban Hot SpotsUrban In-BuildingRemote Rural Dense Urban BreezeACCESS ® VL BreezeMAX Macro Outdoor BreezeMAX Micro Outdoor

11. 11 Proprietary Information Global Vision, Local Execution and Optimization Mobitel

12. 12 Proprietary Information Q2 2010 Regional Breakdown

13. 13 Proprietary Information Strategic Initiatives – Carriers Support TD-LTE: Similarity to WiMAX creates ability to leverage R&D from one to the other via common platform More turnkey projects: Continue to shift focus from equipment vendor to end-to-end solution supplier More professional services: Capture more of total project dollars

14. Proprietary Information 14 Turnkey End-to-end Network Solution DSSBSSAlvariStar 4Motion AAA Internet IMS IP Network Other Network Core Network NOC Radio Access Network Alvarion RAN Third-party network elements Devices Professional services

15. Proprietary Information 15 Focus: Professional Services PlanningDeploymentOptimization Maintenance/ Management Maintenance Managed Services Technology Deployment Management & Support Civil Deployment Post Deployment Business Consulting Design and Integration Radio Planning Migration Planning Capacity Analysis Coverage Analysis Test and Fault Management

16. Proprietary Information 16 Strategic Initiatives: Vertical Markets Develop tailored solutions for promising growth markets such as smart grid applications Improve specialized support for existing channel partners Additional channel development programs to extend reach Government and Municipality Utility and Enterprise

17. 17 Proprietary Information Organization/Cost Structure Initiatives Revamp permanent cost structure in order to reallocate capital to new initiatives Flattened organization Reduced costs Withdrew capital from lower- potential projects Exited lower-potential regions Lowered revenue breakeven point

18. 18 Proprietary Information Results of Operations: Non GAAP * US dollars in millions except per share data The NON-GAAP reports exclude amortizations of intangibles, stock-based compensation expenses, other income and one-time charges. Sales Gross Margin Operating Expenses R&D, net Expenses S&M and G&A Total Operating Expenses Operating loss Net Income (loss) EPS Q2/10 49 36% 9 15 30% 24 (7) -14% (7) ($0.11) 20% 50% Q2/09 59 46% 12 16 27% 28 -2% (1) ($0.01) 21% 48% (1) Q3/09 58 47% 12 16 27% 28 0% 0 $0.00 20% 48% (0.3) Q4/09 60 47% 11 16 27% 27 1% 1 $0.01 18% 45% (4) Q1/10 52 43% 11 15 29% 26 -8% (4) ($0.06) 21% 50% (0.6)

19. 19 Proprietary Information Strong Balance Sheet June 30, 2010 (US $M) Cash, cash equivalents & investments Total assets Total debt Shareholders’ equity DSO 91 287 0 200 115

20. 20 Proprietary Information Future Growth Drivers Low broadband penetration in developing regions 36 countries where broadband penetration is <5% Broadband is becoming national imperative Governments worldwide investing in making broadband more accessible Demand for mobile computing is growing in developed countries 60% of respondents in recent survey said their mobile broadband is too slow Business case improving Cost of subscriber device declining rapidly USB dongle expected to be 1/3 of devices Notebooks and netbooks with 4G expected to grow rapidly

21. 21 Proprietary Information Alvarion: Delivering the Promise Technology that matters Long-term vision Unparalleled experience Competitive business model Execution commitment

22. Thank You