Airspan Intent to Acquire ArelNet

December 30, 2004

Boca Raton, Florida-based Airspan Networks (Nasdaq:AIRN) a leading provider of broadband wireless access solutions for both licensed and unlicensed operators worldwide including WiMAX standard systems, announced an intent to purchase ArelNet, a pioneer in VoIP network infrastructure equipment and solutions for an aggregate purchase price of $8.7 Million today.

Upon completion of the transaction, subject to approval of ArelNet’s shareholders as well as the District Court of Tel Aviv, Airspan's leadership position in wireless VoIP and WiMAX will be reinforced by enabling the development of carrier-grade voice telephony solutions using ArelNet's switching and gateway technologies in the new WiMAX broadband data system. Voice service is an important WiMAX system for operators, and with the merger Airspan expects that their network quality of service in their end-to-end solution will be comparable with traditional telco voice services. Last week Airspan announced that it will deploy their WipLL Network in Afghanistan.

Airspan's President and CEO, Eric Stonestrom, stated: "We believe that voice services are a significant part of the overall WiMAX business case for operators, and our focus in this acquisition is to be able to offer the strongest Voice-Enabled product portfolio in the industry."