PR releases

Alcatel to deliver WiMAX fixed wireless broadband solution through agreement with Alvarion

Paris, February 9, 2005 – Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced an Original Equipment Manufacturer (OEM) agreement with Alvarion Ltd. (NASDAQ: ALVR), a leading provider of wireless broadband solutions. The agreement further extends Alcatel's rich portfolio of wireline and wireless broadband access solutions with the addition of Alvarion's WiMAX-ready solution based on WiMAX 802.16-2004 ("Rev d") standard. The cooperation will allow both companies to efficiently address the growing demand for WiMAX-powered fixed wireless broadband services, by combining Alvarion's commercially-available solution with Alcatel's worldwide reach and network integration capabilities.

As a first positive market recognition of this new OEM agreement, both companies also disclosed today that Alcatel has been selected to run several WiMAX pilot deployments in Europe. Among those, one will be delivered to TDF (the French broadcast service provider) and RATP (the Paris public transport agency) in France.

With Alvarion's solution, Alcatel will build upon its leadership in broadband access and its expertise in turnkey, end-to-end optimisation and integration projects in order to offer service providers throughout the world with an immediately availability of a WiMAX 802.16-2004 solution, thus accelerating their WiMAX deployment for fixed broadband services.

"As part of its user-centric vision, Alcatel is committed to providing end-users with a seamless broadband experience, whatever the access technology," stated Marc Rouanne, chief operating officer of Alcatel's mobile activities. "Our agreement with Alvarion will allow us to offer Service Providers a fixed wireless broadband solution matching their customers' current needs.

"We are delighted to expand our long-standing relationship with Alcatel," said Zvi Slonimsky, chief executive officer of Alvarion. "Their global footprint and turnkey integration expertise will add value for customers and drive the adoption of WiMAX solutions."

WiMAX is an emerging set of standards aiming at providing broadband connectivity through wireless networks. WiMAX 802.16-2004 ("Rev d") can be deployed in emerging markets and developed countries, both in urban and rural areas. It offers either broadband access where DSL cannot reach customers for technical or economical reasons, or a last-mile alternative for competitive operators with a combined voice and broadband access offer.

About Alvarion

Alvarion is the worldwide leader in wireless broadband providing systems to carriers, ISPs and private network operators, and also in extending coverage of GSM and CDMA mobile networks to developing countries and other hard to serve areas. For many years, Alvarion has been playing a prominent role within the IEEE and HiperMAN standards committees as well as in the WiMAX Forum. Its role in the WiMAX standardisation has therefore allowed the company to stand today at the forefront for the technology of IEEE 802.16-2004-based products. For more information, visit Alvarion on the Internet: www.alvarion.com

About Alcatel

Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 12.3 billion in 2004, Alcatel operates in more than 130 countries.