Airspan Networks To Provide Telefonica Subscribers In Peru With High-Speed Internet and Wireless Voice Services

The Agreement Is Part of An OEM Partnership With Ericsson For Broadband Fixed Access Deployment Throughout Latin America

Sunrise, Fla. - April 23, 2001 - Airspan Networks, Inc. (NASDAQ: AIRN), a leading worldwide provider of fixed wireless DSL networks, today announced that it has signed an OEM agreement with Ericsson whereby Ericsson and Airspan will implement a multiservice broadband access platform for Telefonica, S.A. in its Peru network.

Through the agreement, Telefonica will be able to deploy a fixed wireless access solution for the first time on a large scale in urban areas. The addition of Airspan's AS4000 wireless DSL platform will enable Telefonica to deliver both wireless voice and high-speed data to residential subscribers and small-to-medium enterprises throughout the capital city of Lima, including the Cerro Grande, San Juan, San Jose, Vitrate, Pachacamac, El Retablo and Washington regions during the project's first phase. Later phases will encompass the entire country.

"This OEM agreement with Ericsson allows Airspan to enter into the Latin American region for the first time, opening up a promising new sales channel for our wireless DSL solutions," said Gary Gooderum, Vice President and General Manager of Airspan's Latin American unit. "Having such highly regarded partners by our side will be instrumental in our continued success throughout the region."

Telefonica will purchase central office and radio site infrastructure equipment and an initial tranche of subscriber terminals for these seven locations as part of a three-phase agreement worth up to $10 million over a 2 to 3-year period. Since the platform also supports high speed internet and corporate IP and leased line capabilities, it is anticipated that additional voice and data terminals will also be purchased over time to meet the growing demand for telecom services throughout Peru. The total capacity being delivered in phase 1 is in excess of 8,500 lines. Telefonica is one of the most committed carriers to fixed broadband wireless access, which makes its decision to go with Airspan Network's solutions a significant development. "Airspan has both the commercial experience and the superior strategy for deploying a fixed wireless network for our customers," said Peder Asplund, Ericsson's General Manager in Peru. "They clearly understand the challenges that operators are facing when confronting how to deploy voice and high-speed data throughout the final mile." With more than 65 million customers throughout Latin America, Telefonica is poised to bring Internet services to small businesses throughout the region and this initial deal gives Airspan Networks an opportunity to become an integral player in that service rollout.

About Telefonica
Telefónica, S.A. is the world's leading telecoms operator in Spanish- and Portuguese-speaking countries, where it has a potential market of over 550 million people, of whom more than 65 million are already clients. With revenues of €28,485.5 million in 2000, it is Spain's top multinational in market capitalization and one of the world's biggest telecoms companies. Telefónica provides services in 41 countries, through subsidiaries in Latin America, Europe, the United States, Africa and Asia.

About Ericsson
Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.

About Airspan Networks
Airspan provides wireless DSL systems and solutions to operators around the world with licenses in frequency bands between 900 MHz to 4 GHz, including both PCS and MMDS. The company has deployments with more than 50 operators in more than 40 countries. Airspan's systems are based on radio technology that delivers wide area coverage, security and resistance to fading. Airspan's systems can be deployed rapidly and cost effectively, providing 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. More information on Airspan can be found at http://www.airspan.com

This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. These statements are only predictions and actual results could differ materially from those anticipated in these statements based on those factors identified in the company's filings with the SEC. The words "believe", "expect", "intend", "anticipate", variations of such words and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward looking. Forward-looking statements in this press release include, without limitation, the statements that the Latin American region will develop into a promising sales channel and the agreement with Telefonica will be instrumental in Airspan's continued success throughout the Latin American region These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.

For media inquiries, contact:

Airspan Networks:

Al Quintana
Senior Director, Marketing Communications
Tel: +1 954 851 1665
Fax: +1 954 851 1661
Email: aquintana@airspan.com

Europe:

Miller Shandwick Technologies (UK)
Danelle White/Monika Fried
Tel: (+44) (0) 20 7240 8666
Fax: (+44) (0) 20 7240 8668
Email: dwhitel@shandwick.com
mfried@shandwick.com

Americas:

The KMC Group
Beth Mayer
The KMC Group
Tel: +1 425 450 9965 x117
Fax: +1 425 450 9963
Email: bethm@kmcgroup.com

Asia:

Phang & Naughton
Jennifer Phang
Tel: +852 2527 1127
Fax:+852 2866 7940
Email: jenn@phangnaughton.com


For Investment inquiries, contact:

Airspan Networks:
Peter Aronstam
Chief Financial Officer
Tel: +1 954 851- 1680
Fax: +1 954 851- 1661
Email: paronstam@airspan.com