[December 30, 2004]

Airspan Networks to Buy ArelNet

BY JOHANNE TORRES

Broadband wireless access network provider Airspan Networks Inc. (news alert) announced that it has plans to acquire ArelNet Ltd. (news - alert) in an $8.7 million cash and stock deal to reinforce its position in the Internet telephone and wireless markets.

Boca Raton, FL-based Airspan agreed to purchase the Israeli Internet telephone infrastructure company for $4 million in cash and $4.7 million in Airspan shares. The company said it still must complete due diligence and the execution of definitive documentation, approval of ArelNet's shareholders and the District Court of Tel Aviv, and customary third party and regulatory approvals.

Airspan said it expects the transaction to add to 2005 earnings with the introduction of its WiMax products. WiMax is a metropolitan-area wireless network standard with a range of up to 30 miles. Analysts surveyed by Thomson First Call expect the company to earn 7 cents per share for 2005.

Arelnet has been providing VoIP ( define - news - alert)-based solutions since 1996. The company offers a carrier grade product line which includes:

- A 24/7 help-desk for services and support

- The company’s i-Tone Softswitch supports H.323 V4 and SIP simultaneously enabling investment preservation

- Scalable solution enabling growth from one E1 up to thousands of ports

- Fully interoperability with 3rd party CPE supporting multi-standard protocols

- Full SS7 integration, supporting all protocol variants

- Dedicated Carrier Class, fully redundant Hardware, Fault tolerant, distributed architecture with No Single Point of Failure

- Class 4 and Class 5 replacements

- A Cost/Performance Prepaid system

- It includes a comprehensive Network Management System

Airspan Networks enables the rapid rollout of bundled services to the SME, SOHO and residential markets. The company says its wide area radio coverage increases market penetration and additional services, including leased line data and ISDN, maximize return on investment.