Airspan Networks and ArelNet Sign Definitive Merger Agreement

March 29, 2005

Airspan Networks, Inc. (Nasdaq: AIRN) and ArelNet Ltd. (TASE: ARNT) announced today that the companies have signed a definitive purchase agreement under which Airspan will acquire all of the outstanding shares of ArelNet for $8.7 million.

Completion of the transaction remains subject to receipt of the approval of ArelNet's shareholders, the District Court of Tel Aviv and other customary regulatory approvals. At closing, Airspan will pay the purchase price of $8.7 million, comprised of $4.0 million of cash and $4.7 million of common stock of Airspan.

Airspan Networks is a leading provider of broadband wireless access solutions for both licensed and unlicensed operators worldwide. A founding member of the WiMAX Forum, Airspan has a broad portfolio of wireless access products, including its recently-announced new AS.MAX product family that is compliant with the IEEE 802.16-2004 standard (WiMAX) and upgradeable to the 802.16e version of the standard. The product portfolio also supports the Voice over Internet Protocol (VoIP). Airspan has deployed network equipment with a capacity exceeding 1 million lines in more than 95 countries.

ArelNet Ltd. is a pioneer in VoIP network infrastructure equipment and solutions, including soft switches and gateways supporting all major VoIP standards. ArelNet has extensive experience worldwide, having installed network equipment with a capacity exceeding two billion minutes per year.

Upon completion of the transaction, Airspan expects its leadership position in wireless VoIP and WiMAX to be considerably strengthened. More specifically, Airspan anticipates that ArelNet's switching and gateway technologies will enable it to develop carrier-grade voice telephony solutions for WiMAX systems. For operators using WiMAX voice will be an important feature and Airspan expects to be able to offer operators an end-to-end solution with quality of service at a level consistent with that provided by traditional telephone company voice services.