1. 2012 Kick Off Operations & Infra 2012

2. Proprietary Information. 2 OPERATIONS & INFRA. AGENDA: 2012 Company Goals Foundations Efficiencies Connect Products

3. 2012 Company Goals

4. Proprietary Information. 2012 Main Company Goals Revenues/Shipments -$195M GM = 45% Profit Margin = 5% New product Launch Compact Ultra WBSn Operations efficiencies & cost reductions 4

5. Operations & Infra Foundations

6. Proprietary Information. Operations & Infrastructure Elli Yaniv Procurement Yossi B.D. Supply Chain Gil B. Engineering Sagi G. IT Pini N. QA Zuri R. P & T Alla K. PA Shelly A. Projects Goel I. HR Mati Z.

7. Proprietary Information. Contract Manufacturing partners 7 FlextronicsIonics One of the biggest CMs WW Israeli branch specialize in high mix low volume Manufactures: Production of BST RMA repair center NPI Low cost manufacturing facility Located in the Philippines Vast Experience with Alvarion Vast Experience with Israeli customers & culture Economics of scale

8. Proprietary Information. 3 rd Party Strategic Partners 8 GemtekSenao Gemtek is ourCPE partner Core competency in RF/ Microwave design, software engineering, and manufacturing Headquarter is in Taiwan Manufacturing mostly in China Senao is our11N partner Focusing on data networking and wireless voice communications products Headquarter and manufacturing in Taiwan

9. Operations & Infra Efficiencies

10. Proprietary Information. Material – Cost Saving Overall inventory & liability reduction. Goal = $9M Opportunities: 2.5 GHz (ORC) selling excess material (India, Asia, Africa) Walkair – EOL – sell 10.5GHz 10

11. Proprietary Information. Material – Cost Saving Forecast Non accurate forecast leads to: Excess material Inability to manage our suppliers Inability to deliver on time to our suppliers 11 We must improve our forecasting

12. Proprietary Information. Product cost reduction Pricelist cost reduction by purchasing Products redesign with min NRE and max cost efficiency Material utilization in new designs CM capacity, yield and production improvement Improve testing utilization 12

13. Proprietary Information. Logistics & Production US Hub – move to Chicago US & Mexico logistic expenses reduction by 25% Export & Import cost reduction by 8% Close Omer Israel manufacturing site Move logistics to FC Israel Move RMA repair to Flextronics Production of “Wavion” high runners in Ionics 13

14. Connect

15. Proprietary Information. 15 Suppliers Customers

16. Proprietary Information. Suppliers 2012 Challenges Global Trends Metal prices start increase at average of 20% in the last month Fuel costs were raised by 25% from Q3/2011 till January 2012 it will effect the Plastic, Rubber and Cable prices It will effect transportation and logistics In 2009, 2010, and 2011 and expected also in 2012, the average minimum labor wage in China has increased by 15% to 20% Suppliers are strengthening their requirements Forecast is not enough. Manufacturing starts only after a firm PO China as the world center for manufacturing is very difficult logistic wise Far East manufactures are requiring MOQ for CPEs 16

17. Proprietary Information. Customers - IT Infrastructure Tools to increase Sales & Service efficiency Sales ---- Replace current CRM Service------ Replace current service system Quote to Order & forecast---- Implement Configurator system Business partners mng----- Implement PRM system Improve WW users experience in IT systems 17

18. Proprietary Information. Customers - Quality Provide high-quality products and service to our customers. Manage our “customer facing” KPIs Improve our way of doing quality Lesson learning & Corrective And Preventive Actions (CAPA) Lead solving Customers Events Perform Customer Satisfaction Survey Control Contract Manufacturing production (CM) Approve Suppliers 18

19. Proprietary Information. 19 Technical DOA Non technical DOA Product Field failure rate (RMA)- unit age 0-6 Months. 7-18 months, 0-12 months RMA LT performance Production monthly yield – final inspection Service call – Average time to closure. No. of call open above 5 days LT and close open bugs from Customer On time Delivery CUSTOMER FACING- KEY PERFORMANCE INDICTORS (KPI)

20. Proprietary Information. Customers - Quality Provide high-quality products and service to our customers. Manage our “customer facing” KPIs Improve our way of doing quality Lesson learning & Corrective And Preventive Actions (CAPA) Lead solving Customers Events Perform Customer Satisfaction Survey Control Contract Manufacturing production (CM) Approve Suppliers 20

21. Products

22. Proprietary Information. Operations & Infra focus on Products 22 ProductsQ1Q2Q3Q4 Ultra PtP Ultra PtMP Compact 3.5Ghz Compact 3.5Ghz HP WBSn 2450 Refael CPE 6000 - Barrett GA Plan Wavion PMI Unified Engineering Processes Unified Operation Processes Managing Existing Products Execute EOL (GFSK, DS11, EZ) Legacy support RMA Challenges SW Releases 2012 R3.01MR4.0MR5.0M

23. Proprietary Information. 23

24. Thank You Name: Elli Yaniv E-Mail: Elli.Yaniv@alvarion.com Phone:+972 544 279021