1. Alvarion Carrier Grade Wi-Fi Market & Industry Review
Proprietary and Confidential

2. Disclaimer
This presentation contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 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 2012 Alvarion Ltd. All rights reserved. Alvarion®, its logo and certain names, product and service names referenced herein may be 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.

3. Carrier Grade Wi-Fi Definition
Delivers the Service End-users Expect
The Service Provider Perspective
Scalable to million of users
Long range – less APs per sq-km
Smooth deployment and trouble-free operation (NMS)
Open standards - Back office integration
The User Perspective
Seamless service (HS2.0 ready)
QoS
High capacity
Secured
We here about Carrier Grade Wi0Fi a lot. What is it?

4. Outdoor Wi-Fi - Positioning Map
Alvarion is a Carrier Grade Wi-Fi Market Leader
Growth, $1B Market in 1-2 years
Altai, GoNet, BelAir
Alvarion-Wavion
Cisco
Ruckus
Cellular Offloading
Direct
Carrier Access Service
Motorola
$$ Per Account
Sea ports
Mines
Oil & gas
Hotels
Campus
Safe City
Air ports
Cisco
Malls
SPG
Tropos Firetide Skypilot
Ubiquiti
High-end WISPs
MikroTik
Distribution
Low-end WISPs

5. Mobile Broadband Traffic is Soaring
Exponential Demand for Mobile Broadband Traffic
AT&T: 8X increase in data traffic between coinciding with the launch of the iPhone
Cisco: 26x growth between 2010 – 2015, 65% will be video
Capacity Inflation Point 5 5

6. Wi-Fi Overtakes ALL IP Networks in 2015
Fastest Growth is with Mobile, yet Wi-Fi will Carry Most of The Load
Mobile Traffic growth leads with 92% CAGR (Wired 24% CAGR, Wi-Fi 39% CAGR)
The biggest driver for the global traffic growth will be video
Most of Wi-Fi data is Indoor (residential & Enterprise)
The Death of Mobile? The Rise of Wi-Fi as a Viable Alternative to Mobile Cellular Networks , Cisco, November 2011

7. Wi-Fi is a User Driven Phenomena
The User perspective
Low cost, unlicensed band and interoperability propels adoption
Wi-Fi-only tablets are here
Apple: iPhone 4S owners use twice as much data as iPhone 4 users and three times as much data as iPhone 3G owners CNET Jan 2012
Half of Smartphone usage is already on Wi-Fi Bango early 2011

8. Wi-Fi is Strategic to Cellular Operators
The Service Provider perspective
Ubiquitous, low cost deployment
Wi-Fi will offload ~ 60% of mobile data traffic by 2015 Juniper 4/2011:
Hotspot number will grow from 1.3M in 2011 to 5.8M in 2015 Informa
40 connections per sec. on AT&T Wi-Fi hot spot network on 3Q11
302 million Wi-Fi connections on 3Q12, 3 times more than last year
“47% of mobile operators: hotspots are crucial to enhance their customers’ experience” WBA Industry Report 2011
Hot-zones in San-Francisco, London, Singapore, Seoul, Tokyo…
AT&T paid $275 million in cash to acquire Wayport, a start-up that at the time had constructed a hotspot constellation of 8,000 locations.
AT&T now has over 30,000 hotsports in airports, hotels, port arenas,

9. Wi-Fi Cellular Integration Standards
3GPP, IEEE, WFA, WBA
Wi-Fi integration with 3G – 2004 (3GPP I-WALN)
Ahead of its time
SIM Authentication
Wi-Fi integration with LTE – 2010 (3GPP LTE EPC core)
Common service delivery
WFA Hotspot Certification starts in mid 2012
WBA and WFA initiative
ANDSF - Access network discovery and selection function
WISPr - Wireless Internet Service Provider roaming

10. Wi-Fi is Strategic to Cellular Operators
Backhauling & joint LTE / Wi-Fi nodes
Micro cells backhaul
Small cells to drive over $1.5B in wireless BH by 2016 Mobile Experts, 10/2011
58% of outdoor small cells will be BH by wireless by 2016 ABI Research 9/2011
Heterogeneous networks is the future
LTE + Wi-Fi micro cells
HeTNET

11. Wi-Fi is Strategic to Cellular Operators
New Services Opportunity
Location based services
Advertisement, reminders, friends finder, emergency services
Wi-Fi will be used for Indoors and urban canyons
Indoor navigation – the leading app, hot
Accuracy is the key
Malls, Airport terminals, large retail stores, campuses, museums…
Managed Wi-Fi services
Bluetooth – Nokia
Wi-Fi and cellular signals – Microsoft, RIM
Qualcomm – sensors and Wi-Fi

12. Wi-Fi to Lead Location Solutions by 2015
Over a Billion Wi-Fi Location Based Devices by 2015
Alternative Positioning Technologies , ABI, October 2010

13. The Outcome - Wi-Fi is Booming
Over a billion Wi-Fi chipset shipment by 2012
From 0.5 billon in 2009 to nearly 1.7 billion Wi-Fi enabled devices, in 2015
Wi-Fi technology rapid development continues: Beamforming, Hotspot 2.0, ac, Wi-Fi direct, ad, aF…
The White Space opportunity
In-Stat's  September 2010

14. A few words about Private Networks
Education – 300,000 K-12 schools in NA
Hospitality – “many hotels offer unreliable or outrageously expensive wireless Internet access” TechCrunch
Oil & Gas – Video Surveillance, VoIP, logistic area …
Hekou Oil
Dawn Lake Hotel
Heilongjiang Daqing
Guangxi Qinzhou University
Zunyi Government building

15. Summary Opportunities Come With Challenges
Interference and low power regulation Alvarion Wi-Fi leads
Service accessibility – complex today HS2.0
Security SIM/Web authentication, AES
Core integration AAA, tunneling
Unified user profile
Service continuity
Mobility
Roaming
Business case profitability Lowest number of base stations per sq-km, reliable

16. Thank You
Lior Mishan & Ulik Broida