Kyivstar Deploys Ceragon Backhaul

TEL AVIV -- Ceragon Networks Ltd. (NASDAQ: CRNT and TASE: CRNT), http://www.ceragon.com a leading provider of high-capacity wireless backhaul solutions, announced today Kyivstar GSM, the largest mobile operator in Ukraine, has been deploying its new FibeAir 1500HP since the product's release in late 2005. Ceragon is the sole supplier of the SDH high-capacity backhaul solution used in their cellular network. In the first half of this year approximately $1 million of the revenue from this deployment was recognized, with the remaining $800,000 expected to be recognized in the second half of 2006.

Ceragon's new FibeAir 1500HP series of wireless radios replaces Kyivstar's lower capacity PDH links with high capacity SDH networking equipment enabling them to increase bandwidth from 34MB to 311MB on the same radio channel and more than quadruple their current capacity. The FibeAir 1500HP high power radio, optimized for long haul applications, provides Kyivstar with a reliable, easily-deployed solution that allows them to use cost-effective smaller antennas. With its unique embedded space diversity including dual receiver architecture, high transmit power and an IF (intermediate frequency) combining algorithm the FibeAir 1500HP guarantees Kyivstar superior performance. NTU-Service, Ceragon's partner and system integrator in Ukraine, provides project management, installation, local support and maintenance services.

Commenting on the new contract, Mr. Alexander Dorofiy, Deputy Chief Technical Officer Kyivstar said: "We have been met with overwhelming demand to increase the capacity of our networks in order to provide fast delivery of more services. Ceragon's SDH radios are enabling us to promptly meet this growing demand while offering benefits of a self-healing ring topology and a single point-of-view for management."

Ceragon Networks Ltd. (Nasdaq: CRNT)