Alvarion® Announces Financial Goals for 2012

Operating plan targets 5% non-GAAP operating profit margin with a cash position at year-end 2012 of about $65 million

Webcast conference call on December 15 at 8:30 am EST

Washington DC, December 14, 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 that it is implementing its strategic plan with specific business goals which are targeting a non-GAAP operating profit margin of 5% for 2012. After capital expenditures and debt service, the 2012 cash balance at yearend is expected to be about $65 million, similar to the level expected at year-end 2011.

Based on the new plan, the overall non-GAAP gross margin target for 2012 is 45% and the target for operating expenses is below 40% of revenue. Taking into account the macro-economic outlook, management is basing the plan on an assumed revenue level of $185 million to $195 million for 2012, which includes approximately $25 million of revenue from Wavion products.

The resource reallocation component of the plan is designed to give priority to investments in business segments which are expected to be less sensitive to global economic conditions, focus on areas in which Alvarion can add significant value to customers, reduce or postpone investment in areas that are most likely to be negatively impacted by macro-economic factors, and use resources as efficiently as possible by rationalizing the organization and consolidating Alvarion and Wavion development projects. Specifically, Alvarion plans to address mobile operators with capacity and coverage solutions such as WiFi offload and distributed antenna systems (DAS) to enhance 3G/4G network performance, private networks in target vertical markets, BWA (broadband wireless access) service providers in certain rural and emerging markets, and WISPS (wireless internet service providers). Alvarion will provide an optimized multi-technology portfolio of solutions using both licensed and unlicensed spectrums. The portfolio will include a flexible software-defined 4G RAN platform and carrier-grade outdoor WiFi solutions.

Applications for the multi-technology solutions, with Alvarion-specific value-add, will include business and residential broadband access, metro WiFi, smart cities (video surveillance, traffic control, etc.), campus environments (business, education, healthcare and hospitality connectivity), and certain applications tailored to specific verticals such as utilities or oil and gas.

Revised Q4 2011 Guidance and Outlook
Alvarion’s Q4 2011 report will include Wavion’s results from November 23, 2011. Management expects revenues in Q4 to be $42 to $44 million. The non-GAAP loss per share is expected to be ($0.03) to ($0.04).

Long-term Target Operating Model
Beyond 2012, Alvarion will be targeting a long-term operating model with revenue growth of 15-20% per year, at least 45% gross margin, 10% non-GAAP operating margin and sustained positive free cash flow after capital expenditures and debt service."

“We have a great deal of confidence in our strategy,” said Eran Gorev, president and chief executive officer of Alvarion. “Implementing this operating plan will enable us to fully participate in new growth areas and to use our resources more effectively. While we are reallocating some resources based on market growth prospects, we remain committed to meeting the needs of our extensive installed base of customers and to their investment in Alvarion solutions. We plan to do this through a combination of prudent internal development augmented by partnerships and strategic alliances. Our plan also addresses the fact that near-term prospects, even in generally attractive market segments, may be affected by macro-economic factors in certain regions.

“Maintaining a strong balance sheet is important to Alvarion and we expect to end 2011 with over $65 million of cash and cash equivalents on our balance sheet, after deal-related expenses and other cash charges. Our 2012 plan is intended to generate positive operating cash flow such that, after capital expenditures and payment of the relevant portion of debt connected with the acquisition, we continue to have substantial financial flexibility to pursue our longer-term objectives.

“We believe our new multi-technology approach to carefully chosen growth segments of the wireless broadband market will enable us to dramatically improve our performance and create substantial value for shareholders,” concluded Mr. Gorev.

Webcast Conference Call Thursday, December 15, at 8:30 a.m. EST

Alvarion management will host a conference call on Thursday, December 15, at 8:30 a.m. Eastern time to discuss the 2012 plan and other matters.

Please call the following dial in number to participate:

USA: (866) 393-1604; International: +1(224) 357-2191.

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 11:30 a.m. EST on December 15, 2011 through 11:59 p.m. EST on January 14, 2012.

To access the replay, please call:

USA: (855) 859-2056

International: +1(404) 537-3406.

To access the replay, users will need to enter the following code: 36872955.

Non-GAAP Financial Measures
In this press release, Alvarion provides guidance for the fourth quarter and discusses its future financial performance targets on an operating and non-GAAP basis. Non-GAAP figures exclude stock-based compensation, amortization of intangible assets, acquisition-related expenses, as well as restructuring and other charges. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is not provided on a forward-looking basis because the purchase price allocation of the Wavion acquisition has not been completed and the amount of restructuring and other charges cannot be determined.

About Alvarion
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 spectrums. (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 to differ materially from those described in the forward-looking statements: our failure to fully implement the 2012 plan referred to above, our inability to reallocate our resources and rationalize our business in a more efficient manner, potential impact on our business of the current global macro-economic uncertainties, 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;; the potential incurrence by Alvarion of unknown liabilities of Wavion; the failure of Alvarion to effectively integrate the business and technology of Wavion into that of Alvarion and Alvarion’s products and realize the expected synergies from the acquisition; the failure of Alvarion to gain market acceptance for the Wavion products as contemplated; the failure of the markets for Wavion’s and Alvarion’s products to grow 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 +972.3.767.4333. Please see the Investor section of the Alvarion website for more information: http://www.alvarion.com/index.php/en/investors

Alvarion®, its logo and certain names, product and service names referenced herein are either registered trademarks, trademarks, trade names or service marks of Alvarion Ltd. in certain jurisdictions. All other names are or may be the trademarks of their respective owners.