Alvarion Reaches Agreement with Principal Lender to Modify Terms of Its Three-Year Loan

Alvarion Ltd. (NASDAQ: ALVR) today announced it was granted a temporary forbearance of its breached covenants and reached a general agreement with its principal lender to modify the terms of the loan, which the company entered into to finance the acquisition of Wavion Inc. The agreement will include a modest increase in the interest rate and the repayment of approximately $7 million of principal on the loan.

The current outstanding balance under the $30 million three-year loan is approximately $28.6 million, reflecting regular principal and interest payments made to date. The loan modification agreement provides that Alvarion will repay approximately $7 million of principal in addition to its normal loan payments by July 2012, after which the outstanding balance of the loan is expected to be approximately $20 million.

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