Alvarion Settles Suit

The recent settlement of a lawsuit with a former customer of interWAVE will result in favorable changes to Alvarion's Q4 results

March 27, 2006

1 Min Read

TEL AVIV -- Alvarion Ltd., (NASDAQ: ALVR), the world's leading provider of wireless broadband solutions and specialized mobile networks, today announced that the recent settlement of a lawsuit with a former customer of interWAVE Communications International Ltd. (acquired by Alvarion in December 2004), will result in favorable changes to Alvarion's results of operations for the fourth quarter and full year 2005 (as disclosed on February 8, 2006), to reflect the impact of settling the lawsuit for less than the amount of the Company's reserve.

The effects on 2005 financial statements are as follows: general and administrative expenses in Q4 2005 and full year 2005 are decreased by $987,000 to $1.96 million and $10.93 million, respectively, and the balance sheet for December 31, 2005 shows a decrease of $987,000 in Other Payables and a corresponding increase in Shareholder' Equity from the amounts previously disclosed.

As a result of these adjustments, on a GAAP basis, the net loss for Q4 2005 is ($3.9 million), or ($0.07) per share and the net loss for all of 2005 is ($12.6 million), or ($0.22) per share.

These adjusted figures will appear in the Company's Form 20-F for 2005 that will be filed with the SEC within a few weeks.

Alvarion Technologies Ltd. (Nasdaq: ALVR)

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