Airspan Completes ArelNet Buy

BOCA RATON, Fla. -- Airspan Networks, Inc. (Nasdaq:AIRN) announced today that it has completed the acquisition of all of the outstanding shares of ArelNet Ltd (TASE:ARNT) for $8.7 million. In accordance with the definitive purchase agreement signed by the companies on March 29, 2005, Airspan has paid the price comprised of $4.0 million of cash and 1,001,325 shares of common stock of Airspan.

The consideration is expected to be delivered to ArelNet's shareholders on or about June 22, 2005. For information regarding the transaction applicable to ArelNet's shareholders, including information pertaining to a tax ruling from the Israel Tax Authority, readers may view ArelNet's filings with the Israel Securities Authority at http://www.magna.isa.gov.il/.

Airspan Networks is a leading provider of broadband wireless access solutions for both licensed and unlicensed operators worldwide. A founding member of the WiMAX Forum, Airspan has a broad portfolio of wireless access products, including its recently-announced new AS.MAX product family that is compliant with the IEEE 802.16-2004 standard (WiMAX) and upgradeable to the 802.16e version of the standard. Airspan's WiMAX and WipLL product portfolios also support the Voice over Internet Protocol (VoIP).

ArelNet Ltd. is a pioneer in VoIP network infrastructure equipment and solutions, including soft switches and gateways supporting all major VoIP standards. ArelNet has extensive experience worldwide, having installed network equipment with a capacity exceeding two billion minutes per year.

"This acquisition represents a major milestone for the growth of Airspan," said Eric Stonestrom, president and chief executive officer of Airspan Networks. "With the addition of the ArelNet product line to our portfolio, our leadership position in wireless VoIP and WiMAX will be considerably strengthened. We expect ArelNet's switching and gateway technologies will allow us to develop carrier-grade voice telephony solutions for WiMAX and WipLL systems. We believe that our customers who use WiMAX will require voice services as a very important feature of their service offerings, and with ArelNet products integrated with our solutions, we will now be able to offer them an end-to-end solution with quality of service at a level consistent with that provided by traditional telephone company voice services."

Airspan Networks