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Airspan Announces Major Expansion of Dedicado's Uruguayan Wireless Network

BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 4, 2004--Airspan Networks, Inc. (Nasdaq:AIRN), a leading worldwide provider of broadband fixed wireless DSL networks, announced today that it has extended the supply agreement signed with Dedicado of Uruguay in July 2003. Under that contract, Dedicado became one of the first carriers deploying Airspan's AS4020 integrated voice and high-speed data communications systems to provide always-on, high-speed Internet access and traditional voice services in the city of Montevideo. Dedicado originally selected Airspan's wireless DSL technology to overlay an existing network built by competitor, Alvarion.
The original network has operated successfully since December 2003, and demand for its services now outstrips its capacity. Under the contract extension, Airspan will supply additional AS4020, WipLL and WiMAX equipment for a significant network expansion, to enable Dedicado to serve up to 20,000 subscribers with a mix of circuit-switched voice services, always-on, high-speed Internet access and voice-over-IP connections. The contract extension requires the immediate delivery of AS4020 customer premise terminals and WipLL terminals. This equipment will serve the rapidly expanding Dedicado customer base. Additional deliveries throughout 2004 will bring the total number of Airspan customer premise units to approximately 10,000 by year end. WiMAX infrastructure and customer terminals will be delivered in 2005.

Dedicado, a private competitive local exchange carrier offering data, Internet, Local Telephony with Airspan and Ericsson switching, international long distance services and VPN, owns the only 3.5GHz spectrum license in Uruguay and services a greater share of the local data market than incumbent telephone service provider, ANTEL. The company has a market share of 50% of last mile connections.

Arturo Vargas, President and CEO of Dedicado, states: "We have evaluated the range of suppliers for broadband wireless equipment and have concluded that Airspan has the optimum mix of existing products and a roadmap to meet our needs. We have been pleased with the performance of the extensive AS4020 network installed so far, and we look forward to an aggressive expansion in the number of subscribers as we expand our focus beyond the business market. Airspan's leadership in WiMAX development coupled with its ability to deliver current product has been paramount in our decision process to expand our network."

"Airspan is very pleased to expand its relationship with Dedicado, already one of our largest existing customers in Latin America," said Eric Stonestrom, President and CEO of Airspan Networks Inc. "We anticipate that the attractive economics of our product range across the wide base of Dedicado customers will enable Dedicado to grow its market share substantially. We are also pleased to be selected as the WiMAX vendor for the network."

About Dedicado

Dedicado provides communications services over fixed wireless networks that operate in the 900MHz, 3.5GHz, 10.5GHz, and 37GHz frequency bands. Formed in May 2000 with investment from local investors, Dedicado offers International Private Long Distance, Local Telephony, Internet access and Virtual Private Networks (VPN) services to business and residential customers at data rates of 64kbps, 128kbps, 256kbps and higher.

About Airspan Networks Inc.

Airspan Networks provides wireless voice and data systems and solutions, including Voice Over IP (VoIP), to both licensed and unlicensed operators around the world in frequency bands between 700 MHz and 6 GHz, including both PCS and 3.5GHz international bands. Airspan has a strong product evolution roadmap that includes offerings compliant with the new 802.16-2004 standard, and with built-in 802.16e capability. Airspan is on the Board and a founder member of the WiMAX Forum. The Company has deployments with more than 200 operators in more than 70 countries. Airspan's systems are based on radio technology that delivers excellent area coverage, high security and resistance to fading. Airspan's systems can be deployed rapidly and cost effectively, providing an attractive alternative to traditional wired communications networks. Airspan also offers radio planning, network installation, integration, training and support services to facilitate the deployment and operation of its systems. Airspan is headquartered in Boca Raton, Florida with its main operations center in Uxbridge, United Kingdom.

More information on Airspan can be found at http://www.airspan.com

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, including statements regarding our strategy, future operations, financial position, future revenues, projected costs, prospects, plans and objectives of management, may be deemed to be forward-looking statements. The words "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "will," "would" and similar expressions or negative variations thereof are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. Investors and others are therefore cautioned that a variety of factors, including certain risks, may affect our business and cause actual results to differ materially from those set forth in the forward-looking statements. These risk factors include, without limitation, (i) a slowdown of expenditures by communication service providers; (ii) increased competition from alternative communication systems; (iii) the failure of our existing or prospective customers to purchase products as projected; (iv) our inability to successfully implement cost reduction or containment programs; (v) a loss of any of our key customers; (vi) our ability to retain the largest existing customer of Nortel Network's fixed wireless business; (vii) our ability to continue to sell the existing inventory of Nortel Network's fixed wireless business on purchase terms and conditions comparable to those currently utilized, and (viii) Dedicado's ability to pay for and take delivery of the equipment mentioned in this press release, and its ability to successfully sell services using Airspan equipment in future. The Company is also subject to the risks and uncertainties described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2003. You should read those factors as being applicable to all related forward-looking statements wherever they appear in this press release. We do not assume any obligation to update any forward-looking statements.

Contacts


Airspan Networks, Inc., Boca Raton
Peter Aronstam, 561-893-8682, 561-893-8671
Email: paronstam@airspan.com

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