TEL AVIV -- Alvarion Ltd. (NASDAQ:ALVR - News), the world's leading provider of wireless broadband solutions today announced that it has completed the sale of its Cellular Mobile business unit ("CMU") to LGC Wireless, Inc. ("LGC"), a privately-held supplier of wireless networking solutions that enable high-speed wireless voice and data communications in dense urban areas as well as inside public and private structures. The sale includes substantially all of the assets of the CMU in exchange for approximately $15 million in notes and the assumption of certain liabilities. The notes are due at the end of 2007 and 2008. One of the notes, in the principal amount of $7 million, is convertible into shares of common stock of LGC.

Tzvika Friedman, President and CEO of Alvarion said, "We believe that this transaction represents a good outcome for the customers and employees of the Cellular Mobile Unit, as well as for the shareholders of Alvarion. The transaction will enable us to focus all of our resources and attention on WiMAX."

The CMU business, revenues of which contributed approximately $21 million in the first 3 quarters of 2006, will be classified as discontinued operations and, as a result, the broadband wireless access (BWA) revenues will constitute all of Alvarion's revenues. The Company indicated that it is reiterating its guidance, given on November 2, 2006, of revenues for its BWA business of between $47 million and $51 million for the fourth quarter of 2006. Alvarion is also reiterating its non-GAAP EPS guidance of $0.01 and $0.04 for the fourth quarter of 2006.

The cash impact of the transaction on the fourth quarter results will be immaterial; however, fourth quarter GAAP results may include a non-cash charge, mainly to reflect the loss on the sale of these assets. As a result, the Company is rescinding its previous guidance for GAAP results for the fourth quarter of 2006. This transaction will reduce total headcount by about 100 people, which will allow Alvarion to divert investments to its WiMAX initiatives without increasing overall operating expenses.

Alvarion Technologies Ltd. (Nasdaq: ALVR)