Airspan Continues Axtel Deal

Airspan signs agreement with Mexican telecom operator Axtel to provide $65M additional voice and data solutions for its network expansion plans

April 21, 2004

2 Min Read

BOCA RATON, Fla. -- Airspan Networks, Inc. (Nasdaq:AIRN), a leading worldwide provider of broadband fixed wireless access equipment, announced today that it has signed an agreement with Axtel for $65 million of continued sales of Proximity equipment to meet Axtel's significant network expansion plans for its 3.5GHz voice and data service access network in Mexico. As part of this agreement, Axtel has placed new orders in excess of $20 million for delivery in the second half of 2004. This comes on top of previously committed orders, which exceed $25 million for 2004.

The new agreement amends the Purchase and License Agreement for FWA Equipment and the Technical Assistance Support Services Agreement signed originally between Nortel Networks and Axtel, S.A. de C.V. in March 2003, in respect of which Nortel's rights and obligations were subsequently assigned to Airspan in December 2003 when Airspan acquired the Proximity business from Nortel. Under the March 2003 agreements, Axtel was committed to make certain minimum purchases of Proximity equipment and related services until early 2008. The new agreement announced today replaces certain of those commitments from the end of 2004, and also substantially increases the amounts that would otherwise have been purchased from 2004 to 2006.

"We are pleased that the two companies will continue their productive relationship," said Tomas Milmo, CEO of Axtel. "Airspan's leadership in the Fixed Wireless Access Market and its strong R&D roadmap have been an influencing factor in our decision to expand our existing network with the Proximity product and to deepen the relationship between the companies."

"We are delighted that Axtel has chosen to continue its partnership with Airspan for its network expansion," said Eric Stonestrom, CEO of Airspan. "Axtel operates the largest Fixed Wireless Access Network at 3.5 GHz in the world today, and clearly its decision to continue to grow its network with us is based on our operating track record and Axtel's extremely positive experience with the existing product. This is a very significant win for Airspan, and we are very pleased to be part of Axtel's exciting expansion plans."

Airspan Networks

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