Competitive Landscape 2012 Sales Kickoff Competitive Landscape Proprietary and Confidential

Disclaimer This presentation contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: potential impact on our business of the current global recession, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in 4G license allocation in certain countries; the failure of the products for the 4G market to develop as anticipated;, Alvarion’s inability to capture market share in the expected growth of the 4G market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of the Alvarion’s strategic initiatives to enable Alvarion to more effectively capitalize on market opportunities as anticipated; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission. The information in this presentation is provided solely for information purposes, and is not a commitment, promise or legal obligation to deliver any products, features and/or functionalities, and should not be relied upon in making purchasing decisions. The development, release and timing of any products, features and/or functionalities described remains at the sole discretion of Alvarion. If and when any products, features and/or functionalities are offered for sale by Alvarion, they will be sold under agreed upon terms and conditions. This information may not be incorporated into any contractual agreement with Alvarion or its subsidiaries or affiliates. Alvarion makes no representations or warranties with respect to the contents of this presentation, and specifically disclaims any express or implied warranties of merchantability or fitness for any particular purpose. Copyright 2012 Alvarion Ltd. All rights reserved. Alvarion®, its logo and certain names, product and service names referenced herein may be either registered trademarks, trademarks, tradenames or service marks of Alvarion Ltd in certain jurisdictions. All other names are or may be the trademarks of their respective owners. The content herein is subject to change without further notice.

Outline Outline Differentiators and positioning Ruckus Duration: 45 minutes Differentiators and positioning Ruckus Cisco GoNet BelAir Altai Summary 3 3

Differentiators and Positioning

Alvarion Wi-Fi Key Differentiators Technology differentiators Two-way spatially adaptive Beamforming Interference Immunity Suite 900 Mbps per unit, three streams 512 users per unit 3x3 MIMO High Gain Diversely Polarized (HGDP) antenna Others IP-68, high EIRP, 4.9-5.9 GHs single HW Solution differentiators Very flexible: bands, field-of-view WCPEn-2400-I, Market leading Wi-Fi CPE Built-in Access Controller

Alvarion Wi-Fi Key Differentiators Value proposition Best coverage and capacity Best interference mitigation Lowest cost per sq-km Superior in NLOS and high interference Best for BWA services Unique Beamforming indoor Wi-Fi CPE Superior indoor signal penetration Best for large venues (Airports, campus, stores, hotels… ) Ubiquitous coverage with fewer units Experienced An Alvarion company – a wireless powerhouse Two decades of wireless broadband experience

Outdoor Wi-Fi Market & Positioning Alvarion is a Carrier Grade Wi-Fi Market Leader Growth, $1B Market in 1-2 years Altai, GoNet, BelAir Alvarion-Wavion Cisco Ruckus Cellular Offloading Direct Carrier Access Service Motorola $$$ per Account Sea ports Mines Oil & gas Hotels Campus Safe City Air ports Cisco Malls SPG Tropos Firetide Skypilot Ubiquiti High-end WISPs MikroTik Distribution Low-end WISPs

Ruckus Wireless

Ruckus – in a nutshell Privately held Revenue 2011: $120M (estimated) HQ: Sunnyvale, CA, USA 300+ employees Solutions: Wi-Fi for enterprises/carriers, indoor/outdoor Customers: enterprises 70% and operators 30% Technology: 802.11a/b/g/n, adaptive antenna array, mesh Main partners: Alcatel-Lucent, Nokia Siemens Distribution: 2,600 partners WW Main customers: AT&T, Deutsche Telekom, Swisscom, China Telecom, KDDI and Tikona Active WW, less in Africa

Ruckus Claim to Fame Smart antenna selection for better coverage Tikona network KDDI win Perceived as low price Good CPE

Beamforming vs. Pattern Selection Alvarion Beamforming Ruckus Antenna Pattern Selection Unique High Gain Diversely Polarized (HGDP) antenna array Multiple low-gain antennas Selecting an antenna pattern from 4000+ patterns Exploits multipath Coherently combines all reflections No coherent combing of reflections Adapts per packet per user, tracks movements and noise variations “Try-and-error” over multiple packets Excels in NLOS and noise handling Excels in indoor penetration Good for home usage (few of users, low interference, less dynamic) Max gain: 20 dB Max gain: (estimated) 10 dB

Alvarion-Cisco-Ruckus   Alvarion Cisco Ruckus Comment WBSn-2450 Aironet 1552 ZoneFlex 7762(s) Configuration Field-of-view Omni, Sector, and Omni-sector combinations Omni directional Omni directional Sector Flexible form factor and field-of-view enable cost effective deployment for different scenarios Radio Spectrum 2.4-2.483 GHz 4.9-5.9 GHz 2.4-2.483 GHz 5.15-5.85 GHz (fragmented over multiple HWs) 2.4-2.483 GHz 5.15-5.875 GHz  Simultaneous operation in 2.4 and 5 GHz for all Standards 802.11a/b/g/n MIMO 3x3 MIMO Strongest MIMO 2x3 MIMO 3x3 MIMO High level of MIMO is very beneficial in urban and large venues Spatial data streams 3 streams Future ready speeds 2 streams Max capacity 900 Mbps 2x25 VoIP calls 600 Mbps 20 VoIP calls Alvarion provides future-ready capacity

Alvarion-Cisco-Ruckus Cont.   Alvarion Cisco Ruckus Comment WBSn-2450 Aironet 1552 ZoneFlex 7762(s) Radio cont. Beamforming Two-way spatially adaptive per packet BF, array and diversity gain Standard uplink only BF Basic antenna pattern selection, “try-and-error” over multiple packets Digital BF is mandatory for large scale deployments Antenna Omni: 7.5/8.5 dBi in 2.4/5 GHz, dual band Sector: 12/14 dBi in 2.4/5 GHz, dual band HGDP antenna array (by Alvarion) maximizes MIMO and BF benefits Integral: 2/4 dBi in 2.4/5 GHz, dual band External 4/7 dBi in 2.4/5 GHz, dual band Omni, internal (multi element) 2-3 dBi Sector: 2-5 dBi in 2.4 GHz External in 5 GHz, two antennas Max directed EIRP (including BF gain) Subject to regulations O: 43/43dBm in 2.4/5GHz S: 48/49dBm in 2.4/5GHz Int.: 30/32dBm 2.4/5GHz Ext.: 32/35dBm 2.4/5GHz O: ~30dBm S: ~32/35dBm 2.4/5GHz WBSn offers a significant high power design Max sensitivity @ 20 MHz channels 11a/g @ 6 Mbps: -96 dBm 11a/n @ MCS0: -95 dBm 11g/n @ MCS0: -95 dBm 11a @ 6 Mbps: -92 dBm 11g @ 6 Mbps: -94 dBm 11a/n @ MCS0: -92 dBm 11g/n @ MSC0: -93 dBm ? (expected basic Atheros)

Alvarion-Cisco-Ruckus Cont.   Alvarion Cisco Ruckus Comment WBSn-2450 Aironet 1552 ZoneFlex 7762(s) Radio cont. Interference mitigation Alvarion interference Immunity Suite (HW and SW based): BF, WARA, DIH and automatic channel selection CleanAir (air sensing) for best channel selection Antenna pattern selection - mainly effective in indoors, ChannelFly - automatic best channel selection Alvarion outperforms in heavy interferences – field proven Channel bandwidth 2.4 GHz: 20, 40 MHz 5 GHz: 10, 20, 40 MHz 2.4 GHz: 20 MHz 5 GHz: 20, 40 MHz 2.4 GHz: 20, 40MHz 5 GHz: 20, 40 MHz More flexible channel options Backhaul Self healing, BH in 5 GHz, incl. Mesh support Mesh support Mesh and PtP

Alvarion-Cisco-Ruckus Cont.   Alvarion Cisco Ruckus Comment WBSn-2450 Aironet 1552 ZoneFlex 7762(s) Others Weight (Excluding antennas, mounting kit cables and battery backup) 1.4 - 3.75 kg, different configurations Lightweight units 6.4 - 8.0 kg, different configurations 1.9 kg Cisco Aironet is very heavy Dimensions (LxWxH) Omni: 38cm x 14cm x 9.5cm (excluding antennas) Sector: 38cm x 14cm x 39.5cm 19.81 cm x 30.48 x 16.26 cm) (including antenna mount) 23.9 cm (L), 19.5 cm (W), 14.1 cm (H) Battery back up External Integral optional LAN Interface GbE GbE, SFP and DOCSIS 3.0, different models GbE, and DOCSIS 3.0, different models Outdoor rated IP-68 IP-67 Company focus Outdoor and indoor Wi-Fi, Carrier grade Over a decade of outdoor Wi-Fi experience Enterprise and core vendor, mainly indoor and municipal Wi-Fi solutions Mainly indoor enterprise (migrating to outdoors)

Indoor Competitive Test, Hanoi Vietnam Site Alvarion Ruckus ATI lobby 35-50 Mbps 15-20 Mbps K. Ro Café 300 Kbps No Access K.R o Café 2nd floor 2 Mbps Xe May Moto bike Garage 10-15 Mbps 1-2 Mbps Under construction House 2-3 Mbps Computer Shop 2-4 Mbps M&V Shop Grocery Shop 50m

Outdoor Coverage Competitive Test Light urban, heavy interference, laptop tests AP 300m 180m WBSn Sector Ruckus Sector Mbps On average, WBSn provides 50% greater ubiquitous coverage, and 50% higher capacity

Building Coverage Alvarion: Superior Radios Cover Building Using Fewer Units Alvarion Ruckus List price: $14,700 List price: $48,000

Hotel Coverage Tests A test by a large hotel chain Thick concrete walls, reinforced with heavy metal structure LOCATIONS   #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 Results: Undesirable results with BelAir and Ruckus BelAir and Ruckus require additional equipment – expensive Wavion is the preferred solution

Seoul International Airport, S. Korea KT “Ruckus failed in the airport due to coverage and throughput performance. … started checking Airport coverage with twelve Ruckus APs and had bad coverage and throughput. Then … tested Wavion and Wavion covered half the floor with one WBS2400-SCT. Still …decided to go with Ruckus as it got better throughput when tested Ruckus in short distances. After installing four Ruckus … got lots of dead spots and 20 meter-only coverage for the throughput measured in initial trials. … have decided to remove Ruckus and install four Wavion units.”

Ruckus Latest News ChannlyFly Cellular data offloading A Buzz over “Online ACS” support Cellular data offloading Announced a GW on 2/11, still not in market Acquisitions of Intelinet and ComAbility Different approaches – no focus

Tikona and KDDI Insights Tikona India 40k 11g only Ruckus APs in 39 states Low QoS and a lot of technical issues Huge churn, 300k customers dropped to 100k Investors are not happy Not profitable No additional POs for Ruckus over the last year Scanning for alternatives: 2.3 GHz spectrum, LTE, managed services… A bad Wi-Fi example for Indian operators KDDI Japan Was planning 100,000 hotspots by 3/12 A couple of thousand indoor APs only are under installation A new RFI – released yesterday

Limited Actual Field Performances ATI Vietnam Ruckus won the deal in 2010 The project is on hold: Performance does not meet expectations in Hanoi (1st phase) Limited coverage Only LOS Reasonable performance with Ruckus CPEs only WBSn showed superior performances in trials PLDT Ruckus failed the POC – low performance Other limitations ZD – a must, extra cost No good Omni solution – need 3x sectors – expensive and complex!

How to win Ruckus Alvarion radio superiority Business case advantage Much better in metro NLOS Much better in handling interference Much better in indoor signal penetration Business case advantage WCPEn-2400-I – the BWA Ace up the sleeve Leverage on Alvarion Presence, support, distribution Tikona – a failure!

Cisco Systems

Cisco in a nutshell Public company Revenue 2011: ~$1.6B 50% Enterprise WLAN market share HQ: San Jose, CA, USA Solutions: enterprise Wi-Fi, smart cities, carrier 3G/LTE offloading, outdoor/indoor Customers: enterprise, government, carriers Technology: 82.11a/b/g/n, mesh, CleanAir Active WW http://www.infonetics.com/pr/2011/1Q11-Ethernet-Switch-WLAN-and-Enterprise-Router-Market-Highlights.asp http://www.tmcnet.com/usubmit/2011/12/20/6007146.htm http://www.networkworld.com/community/blog/cisco-wlan-market-champion Enterprise WLAN: Cisco (50%), HP(7.5%), Aruba (12%) Consumer WLAN: Netgear, D-Link, TP-Link, Linksys (Cisco)

Cisco Claim to Fame Complete solution Core integration Indoor/outdoor AP Access Controllers Gateways Core integration

Metro Hot-Zone Cost Comparison   Alvarion Cisco Ruckus Comment WBSn-2450 Aironet 1552 ZoneFlex 7762(s) Costs per blanket sq-km coverage in urban area  Unit List Price $3,500-$4,000 depending on configurations AC license: $670 No need for redundancy - distributed architecture $3,000-$3,500 depending on configurations AC: $250-$450, per AP need redundancy $2000, SW upgrades are priced separately AC: $120-$225 per AP need redundancy Price lists (to the best of our knowledge) Units required 8 Better coverage due to superior radios 18 15 Equipment cost (base station and ACs) $35,360 $69,300 $35,250 Installation and backhauling costs $2,800 $6,300 $5,250 BH: $500, 30% of sites Installation and commissioning: $200 per site Maintanace per year $5,314 $11,853 $9,653 Support: 1% of cost Electricity $120/site/Y Rental : $500 /site/Y Total 5Y project cost $64,728 $134,865 $88,763

How to win Cisco Cisco is expensive Alvarion radio superiority Much better at metro NLOS Much better at handling interference Much better at indoor signal penetration Alvarion is flexible and committed Alvarion is big enough to deliver, and small enough to care Leverage on Alvarion Presence, support, distribution COST

BelAir Networks

BelAir in a nutshell Privately held Comcast Venture, T-Mobile venture and others Revenue 2011: $40M-$50M (estimated) HQ in Kanata, Ontario, Canada 200 employees Solutions: small cell HetNet, metro Wi-Fi, outdoor and indoor Customers: Cable and mobile operators, governments and military Technology: 802.11, WiMAX, 3G/LTE, strand-mounting Main partners: Alcatel, Motorola, ip.access, Ericsson? Tessco Main customers: AT&T, Comcast, Cablevision, Time Warner A significant deployment: Times Square, NYC Mainly active in North America Marketing positioning: carrier Wi-Fi and small cell solutions

Alvarion – BelAir Alvarion BelAir Comment WBSn-2450 BelAir 1100 Radio   Alvarion BelAir Comment WBSn-2450 BelAir 1100 Radio Standards 802.11a/b/g/n Field of view Omni, Sector, Omni-sector combinations Spectrum 2.4-2.483 GHz 4.9-5.9 GHz 5.15-5.35 and 5.4705.875 GHz Wider 5 GHz spectrum support with Alvarion Channels 20/40 MHz @ 2.4 GHz 5/10/20/40 MHz @ 5 GHz 20, 40 MHz Better interference avoidance with Alvarion 5 GHz MIMO 3x3 MIMO 2x2 MIMO Stronger MIMO diversity is important for outdoor and large venue installations Data streams 3 data streams 2 data streams Beamforming Two-way spatially adaptive BF Only in uplink (MRC)  Two-way BF is important for large deployments (mandatory in future Wi-Fi standards) Max capacity 900Mbps 600Mbps Interference mitigation HW and SW based: BF, WARA, DIH and automatic channel selection Standard 11n support Alvarion unique interference immunity suite enable best performance in all environments

Alvarion-BelAir Cont. Alvarion BelAir Comment WBSn-2450 BelAir 1100   Alvarion BelAir Comment WBSn-2450 BelAir 1100 Radio cont. Max directed EIRP (including BF gain) O: 43/43 dBm in 2.4/5 GHz S: 48/49 dBm in 2.4/5 GHz S: 32/23.5 dBm @ 2.4/5 GHz O: 29/30 dBm @ 2.4/5 GHz Significant higher power with Alvarion Max sensitivity @ 20 MHz channels 11a/g @ 6 Mbps: -96 dBm 11n 5 GHz @ MCS0: -95 dBm 11n 2.4 GHz @ MCS0: -95 dBm 11a/g @ 6 Mbps: -94/-96 dBm 11n 5 GHz @ MSC0: -94 dBm 11n 2.4 GHz @ MSC0: -96 dBm ~5 dB better uplink budget with better antennas and 3 RX chains MRC Antenna S: 12/14 dBi @ 2.4/5 GHz O: 7.5/8.5 dBi @ 2.4/5 GHz HGDP antenna array S: 8/10.5 dBi @ 2.4/5 GHz O: 5/7 dBi @ 2.4/5 GHz  HGDP antenna array – maximizes the benefits of MIMO in BF in outdoor Networking Virtual AP 16 VAPs 8 VAPs RADIUS Authentication and accounting Tunneling GRE/IPSec (2012) L2TP Access controller Distributed embedded AC External, centralized AC Security WPA, WPA2, 802.11x and EAP methods, ACL, Rouge AP detection (2012), AES encryption Same

Alvarion-BelAir Cont. Alvarion BelAir Comment WBSn-2450 BelAir 1100   Alvarion BelAir Comment WBSn-2450 BelAir 1100 Others Dimensions (LxWxH) Excluding ext .ant. Omni: 38cm x 14cm x 9.5cm Sector: 38cm x 14cm x 39.5cm 19cm x 7.5cm x 29.5cm Outdoor rated IP-68 IP-66 limited robustness Ports GbE PoE GbE LAN for camera/sensor Management Web WavioNet NMS Telnet BelView NMS CLI Company focus Mobile and fix operators An Alvarion company HetNets: 3G/4G, Wi-Fi, DAS Mobile and fix operators, MSO HetNet : 3G/4G, Wi-Fi Presence Worldwide Mainly Americas

BelAir Latest News Launched GigXOne solution in 11/2011 New indoor AP (BelAir1000) New outdoor AP (BelAir 1100, 2x2:2 no BF) New Strand-mounting AP (BelAir3200, 3x3:3, standard BF) New controllers (BelAirCC8000, BelAirHZ4000) Targeting service providers Hot zones, 3G/LTE offloading, campuses

Alvarion cuts the cost by 50% How to Win BelAir Alvarion radio superiority Much better at metro NLOS Much better at handling interference Much better at indoor signal penetration Belair has limited support outside Americas No ETSI certification Belair cellular offloading solution focuses on tunneling, less practical for most operators Leverage on Alvarion Presence, support, distribution Alvarion cuts the cost by 50%

GoNet

GoNet Update 11a/g portfolio has come of age 11n is late, a new portfolio introduction is expected during 2012 Standard (1st generation) 11n 2x2 MIMO, uplink BF (MRC) only no TX BF Fully OEM based (AuteLAN, China, limited support capabilities) Implies limited in-house resources MBW311/312 Indoor MBW 610 Outdoor Access Controllers ACW 5608 (Pizza box) ACW 6810 (rack) 20 dBm low power No BF Standard 2x2 MIMO Singe/dual radios 5.2, 5.3, 5.8 GHz support FIT/FAT IP TR-69, NMMP v2/v3 Dual radio 5 GHz mesh Carrier grade 128 APs to 16k APs From 4096 users to 512k users CAPWAP, SNMP GRE tunneling

Alvarion 11g clearly outperforms GoNet 11g 11g Comparison Tests Field Test Lab Test Alvarion WBS-2400 GoNet MBW 1100 Alvarion 11g clearly outperforms GoNet 11g Alvarion Beamforming GoNet Beam selection 6 radios, spatially adaptive BF per packet, exploits all propagation paths, ensure coherent combinations of signals at receiver’s antenna, 5-10 dB gain 4 radios, beam selection with 14 beam options, no exploitation of multipath, no adaptivity of beam pattern, decreased array gain in end-fire (due to linear array structure), 0-5 dB gain

How To Win GoNet GoNet solution is: Old Low performance compared to Alvarion Expensive Expected GoNet 11n products are inferior Everyone else GoNet

Altai

Company in a Nutshell Privately held Revenue 2011: $10M-$20M (estimated) Based in Hong Kong 200 employees Solutions: BWA, rural, verticals, 3GO Technology: 802.11a/b/g/n, antenna selection Spectrum: 2.4, 3.5, 4.9, 5.x GHz Largest deployment: 150 base stations, in Malaysia Mainly active in Asia, ME, US Marketing positioning: carrier-grade super Wi-Fi Latest PR: provided services on New Year’s Eve. Jan. 2012 based on A8-Ei with Fitel (ISP)

Altai A8 Portfolio Evolution Omni Cumbersome Expensive b/g access + a BH 4 sectors 14 dBi, ant. selection Limited NLOS 6.5 kg, w/o ant. $3,400 (eBay) A8-Ei Launched June/10 Sector 19 dBi b/g access Limited NLOS $1,600 A8i Launched Feb/11 11a (BH) + b/g (access) 8 elements ant. selection, 14 dBi, -3dB at back Ant. section 10.5 kg - heavy A8n Launched June/11 (not on website) Cumbersome 11an (BH) + b/g/n (access) 2x2 MIMO, no BF 4 sectors, ant. section Limited NLOS Expecting (standard) 11n availability in 2012

1st generation 11n equipment Altai A2 and A2e Basic radio solutions 802.11a/n (BH PTP/PTMP) 23 dBm, 5.150-5.825 GHz (partial 5.8) 802.11b/g/n (AP/CPE) 26 dBm, 13 ch. 2x2 MIMO, no BF Flexible field of view (No dual band Omni) IP-67 Ant. Altai A2 Altai A2e 2.4 GHz 5 dBi Omni, ext. 12 dBi panel , ext. 13 dBi, panel, built-in 5 GHz 16 dBi panel, built-in 9 dBi Omni, ext. 20 dBi panel, ext. Alvarion WBSn-2450-OS/S WBSn-2450-SO/S 1st generation 11n equipment

How To Win Altai Alvarion radio superiority Much better at metro NLOS (not LOS) Much better at handling interference Much better at indoor signal penetration Altai 11n is basic and late No BF, 2x2 MIMO Altai is expensive A8/A8n is expensive More base stations per sq-km WCPEn-2400-I – the BWA Ace up the sleeve Limited core integration experience

Summary

Alvarion Wi-Fi Key Differentiators Technology Differentiators Two-way spatially adaptive Beamforming Interference Immunity Suite 900 Mbps per unit, three streams 512 users per unit 3x3 MIMO HGDP antenna Solution Differentiators Very flexible: bands, field-of-view Built-in Access Controller WCPEn-2400-I – best CPE in the market Value Proposition Best coverage and capacity Best interference mitigation Lowest cost per sq. km Best for BWA services Best for large venues Experienced 15+ years of wireless and Wi-Fi

Thank You Name: Lior Mishan E-Mail: lior.mishan@alvarion.com Phone: +972-54-5225756