Alvarion® Reports Q3 2011 Results

Washington DC, November 2, 2011 — Alvarion Ltd. (NASDAQ:ALVR), a provider of optimized wireless broadband solutions addressing the connectivity, capacity and coverage challenges of public and private networks, today announced financial results for the third quarter of 2011.

Q3 Highlights:

Shipments of $39.9 million, an 18.9% sequential decrease
Revenues of $47.0 million, a 15.2% sequential decrease
GAAP net loss of ($0.12) per share; non-GAAP net income of $0.01 per share

In the third quarter of 2011, revenues were $47.0 million, a decrease of 15.2% from $55.4 million in the second quarter of 2011, and a decrease of 13.0% from $54.0 million in the third quarter of 2010.

GAAP net loss in the third quarter of 2011 was ($7.5) million, or ($0.12) per share, including charges of approximately $7.1 million related to the bankruptcy filing of Open Range Communications. This compares to a net income of $0.3 million, or $0.01 per share in Q2 2011. GAAP net loss in the third quarter of 2010 was ($6.1) million, or ($0.10) per share.

Excluding stock-based compensation and one-time charges, on a non-GAAP basis, the company reported net income of $0.3 million, or $0.01 per share, compared with non- GAAP net income of $1.5 million, or $0.02 per share in the second quarter of 2011, and non-GAAP net loss of ($5.4) million, or ($0.09) per share in the third quarter of 2010.

Please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP for the third quarter of 2011 and the comparative periods.

Cash used in operations in the third quarter of 2011 was $0.3 million. As of September 30, 2011, cash, cash equivalents and investments totaled $68.9 million.

Management Comments
“Our Q3 results were in line with our expectations and we again reported a non-GAAP operating profit as well as a non-GAAP net profit,” said Eran Gorev, President and CEO of Alvarion. “We are continuing to execute on our strategic plan aimed at shifting from a primary focus on WiMAX-based RAN solutions to becoming a multi-technology wireless broadband solution powerhouse. Last week, we introduced our BreezeCELL™ indoor capacity solution, based on TrueActive™ DAS technology, which was acquired via the purchase of Clariton Networks’ IP-related assets earlier this year. Today, we announced a definitive agreement to acquire Wavion, which will further enhance our portfolio of optimized multi-technology solutions with additional carrier-grade WiFi capabilities to address the capacity and coverage needs of all types of wireless broadband networks.

“The Wavion acquisition will support our increased focus on vertical markets as WiFi is becoming a vital component of a complete solution for a wide range of customers. In addition, it will be an important part of our suite of solutions for operators, addressing their most pressing challenges brought on by the exponential growth in data usage.

“WiFi technology is gaining acceptance, and we are the only vendor combining a carrier-grade, best-of-breed WiFi solution with a strong DAS offering and 4G RAN capabilities to address a wide range of applications delivered over wireless broadband networks. We believe that these strategic moves will enable Alvarion to better serve existing customers as well as address new rapidly-growing markets by leveraging its global sales force and strong network of go-to-market partners.”

Guidance
Management believes revenues in the fourth quarter of 2011 will be in the range of $43 million to $48 million. Depending on shipment volume and mix, stand-alone Q4 non-GAAP earnings per share are expected to range between breakeven and a loss of ($0.05). Alvarion management will host a conference call today, November 2, at 9:00 a.m. Eastern time to discuss Q3 results and other matters.

Please call the following dial in number to participate:

USA: (800) 230-1085; International: +1(612) 234-9960.

The public is invited to listen to the live webcast of the conference call.

For details please visit Alvarion’s website at www.alvarion.com.

An archive of the online broadcast will be available on the website.

A replay of the call will be available from 6:00 a.m. EST on November 2, 2011 through 11:59 a.m. EST on December 2, 2011.

To access the replay, please call:

USA: (800) 475-6701

International: +1(320) 365-3844.

To access the replay, users will need to enter the following code: 219672.

About Alvarion
Alvarion (NASDAQ:ALVR) Alvarion Ltd. (NASDAQ:ALVR) provides optimized wireless broadband solutions addressing the connectivity, capacity and coverage challenges of telecom operators, smart cities, security, and enterprise customers. Our innovative solutions are based on multiple technologies across licensed and unlicensed spectrum. (www.alvarion.com) This press release 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 to2 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 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, marketing or manufacturing objectives; the failure of 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.

Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission, which this press release will be a part of.

You may request Alvarion's future press releases by contacting Sivan Farfuri, This e-mail address is being protected from spambots. You need JavaScript enabled to view it or +972.3.767.4159. For further information visit the Investor section of Alvarion’s website at: http://www.alvarion.com/index.php/en/investors

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