Airspan Investor Presentation

May 2009
1
Safe Harbor Statement

This presentation contains forward looking statements reflecting the beliefs and
assumptions
i off management based
b d on currentlyl available
il bl information.
i f i Th Company
The C
can make no assurance that there will not be a decrease in the demand for its products
or that there will not be a continued or accelerated global economic slowdown that
would interfere with such p predictions. Investors are therefore cautioned not to pplace
undue reliance on such statements as they are not a guarantee to future performance,
and remain subject to a number of uncertainties and other factors that could cause
actual results to differ materially from their forecast. The Company is subject to the
risks and uncertainties
ncertainties described in its filings withith the Securities
Sec rities and Exchange
E change
Commission, including its Annual Report on Form 10-K for the year ended December
31, 2008 and in the Company's 2009 Quarterly Reports. You should read those factors
as beingg applicable
pp to all related forward-looking
g statements wherever theyy appear
pp in
this press release. We do not assume any obligation to update any forward-looking
statements.

2
 Company Profile

• U.S. based provider of Wireless Access Systems to carriers since 1995 (Ticker: AIRN)
• 200 people in 12 offices worldwide
• Delivered to more than 500 customers in more than 100 countries
• Delivering WiMAX Systems since 2005
• >$180 million in WiMAX sales to date

140 Non-Wimax
120
0 Wimax

100
#2 Position in WiMAX Pure Play
80
In M US $
60
Source: 12 months 2008 Public Filings
40 AIRN ALVR REDL
20
0
2005 2006 2007 2008
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Airspan Mission

• Airspan will set the pace for broadband and carrier-class data and voice
wireless access. Specializing in fixed and mobile WiMAX technologies,
Airspan offers the broadest variety of highly featured equipment in the
widest range of licensed and unlicensed frequencies, enabling the rapid
deployment of profitable, sustainable voice and data businesses for every
market.
k

4
Airspan All About Connectivity

5
Why wireless

• Rapid deployment time I believe that America

should lead the world in
• Low-cost-of-entry broadband penetration and
Internet access…

• Pay
Pay-as-you-grow
as you grow To get true broadband deployed
in every community in America,
we need to reform the Universal
• No need for digging to place infrastructure Service Fund, make better use of
the nation's wireless spectrum,

• Solutions for urban, suburban or rural promote next-generation

technologies and applications,
and provide new tax and loan
• Overcome difficult terrain or weather incentives.

­ Barack Obama, US President Elect

6
Why WiMAX

• Available NOW and in demand

• Worldwide underserved,
underserved rural and emerging market growth

• Major opportunities - license activity and government broadband initiatives

• Example: FCC made 3.65GHz frequency band publicly available in US

• DSL replacement – reaches all corners

• True mobility
• High-speed connectivity
• Industry guidelines and a standard ecosystem
• Triple
T i l Pl
Play - voice,
i video
id and
dbbroadband
db d iinternet

7
Industry Promise and Confidence

• "WiMAX has gained such momentum across so many regions that it is no longer sensible to suggest that WiMAX growth will be
flattened by the emergence of LTE in the next few years. In populous countries with poor national telecom infrastructure, such
as India, Brazil, and Africa, there is a lack of broadband services, and even of basic voice services, which is a significant driver for
WiMAX adoption. In many developing countries, with India being the prime example, WiMAX is showing promising signs of
becoming the primary broadband infrastructure and a prominent 3G mobile technology.” Richard Webb, directing analyst at
Infonetics
• "In a year from now you'll have tens of millions of subscribers - you'll move to hundreds of millions two years after that. We see
Wimax as the most cost-effective way to deliver high-bandwidth wireless broadband." Paul Otellini, Intel Chief executive (BBC
interview)
• BWA/WiMAX subscribers worldwide reached 2.3 million in second quarter 2008 - a 19 percent growth over the first quarter and
a 70 percent increase
i over second
d quarter 2007, according
di to the
h 5th
h issue
i off the
h WiMAXCounts.
i C
• "The overall structure of the telecommunications industry is on a more solid footing at the onset of this economic crisis than
was the case for the prior Internet/telecommunications collapse." Robert Syputa, senior analyst Maravedis Inc.
• “With unparalleled spectrum resources, next generation technology that is commercialized today, key distribution partners and
substantial financing, we believe Clearwire will be set to unleash a new way to Internet by offering a true mobile broadband
experience for our customers.” Ben Wolff, CEO Clearwire
• We are committed to using commercially reasonable efforts to deploy wireless broadband networks based solely on mobile
WiMAX technology once that technology meets certain specified performance criteria, even if there are alternative
technologies available in the future that are technologically superior or more cost effective. Clearwire-Sprint

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Major License Activity and Broadband Government Initiatives

Sweden
Norway $40M
U.K. 2.6 GHz
Digital Divide
2 5 GHz
2.5 Bahrain
B h i Japan
1.5 GHz 2.5 GHz

Portugal
2.5 GHz Thailand
2.5 GHz

U.S./Mexico New Zealand

3.65 GHz 2.5 GHz

Brazilil 3
B 3.5
5 IIndia
di 33.3
3
Italy 3.5
GHz Auction GHz Auction
GHz Auction
9
 Projected WiMAX Market Growth
ons)

ns)
bers (Million
Revenue (US$ Billio

Subscrib
Compiled from Skylight Research and Senza Fili Consulting
10
Airspan Market Experience

• Leading and driving role in the broadband industry

• Over 15 years providing equipment to Telco's worldwide

• Extensive development and implementation experience

• More fixed WiMAX installations than any other vendor

• Unrivaled understanding of carrier class business models and

deployments needs

• Worldwide deployments – Over 500 customers in over 100 countries

• Long history with carrier-class wireless voice solutions

• E
Experience
i b
bringing
i i new wireless
i l access ttechnologies
h l i tto market
k t

• Strongly developed strategic OEM partnerships

• Significant
Si ifi t R&D experience
i and
d resources

11
Product Flexibility

• Airspan’s product portfolio covers the widest range of frequencies in the industry
• 700 MHz,
MHz 11.5
5 GHz,
GHz 2.3
2 3 GHz
GHz, 2
2.5
5 GHz
GHz, 3
3.3-3.8
3-3 8 GHz,
GHz 44.9
9 GHz,
GHz 5.1-5.9
5 1-5 9 GHz

• Combination of products enable most cost-effective and feature-rich offering

• Fixed,, nomadic,, portable
p and fully-mobile
y WiMAX

• Voice and Data capabilities

• Integrated Wi-Fi support enables instant hot spot

• Proven Fixed-to-Mobile upgradeable

• Eco-friendly with lowest power, smallest all outdoor base station packaging

• Carriers benefit from low cost of purchase,

purchase deployment and operation

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Technology

• Airspan has established a leading role in the broadband wireless industry with many
industry "firsts"

• Offers cutting edge experience in carrier-class voice and IP technologies

• Proven expertise in all-IP broadband technologies including microwave backhaul,

consumer and enterprise radio modems, network management software and
system integration

• Award-winning devices

• Deep
D R&D b
bench
h maintains
i t i lleadership
d hi status
t t – wellll over h
half
lf th
the company iin R&D

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Airspan Platforms - A Complete Network Solution
Airspan Base Stations Airspan Subscriber Units

Internet

Fixed and Mobile Enterprise Class Devices

Macro-Cells

www

WiMAX
ASN Gateway and
AAA
Mobile MacroMAXe USB / Embedded Devices

Micro/Pico-Cells Consumer Self-Install Devices

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Optimizing WiMAX
 Airspan’s value-proposition enables differentiation for Customers
 Core technologies which translate to Customer advantage:

Software Defined Radio Smart Antenna Systems Carrier-Quality Voice Leadership in CPE

• Differentiated DSP • Enhanced coverage • Enhanced voice • Industry First – self

solution = and capacity = quality = install multi-band
CPE =
• Upgradeable
pg with • Improved
p carrier • Maximum revenue
minimum business case per subscriber • Mobile worldwide
disruptions roaming

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Mobile WiMAX

• Leadership implementing advanced technology – “Wave 2”

• Strategic Partnerships – Best in Class

• Ecosystem – Starent ASN, Bridgewater AAA, Intel, Sequans
• Contract Manufacturing – Flextronics / ASUS / USI

• Results so far
• WiMAX Forum® Wave II certification received for Mobile WiMAX USB (MiMAX)
• MiMAX CPE – Only quad-band Wave-2 subscriber device (Awarded Best of WiMAX World
USA)
• MacroMAXe Base Station– Industry Leading Cost, Capacity, Coverage (Awarded Best of
WiMAX World Germany)
• Strongly referenced solution in 2.5Ghz, 2.3GHz and 3.5GHz

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Airspan MacroMAXe - All Outdoor Mobile Base Station

• Industry’s longest range, highest capacity, smallest footprint

• Go green - smallest, most power-efficient mobile base station on the market
• Multiple
M l i l commercial
i l trials
i l underway
d

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WiMAX Customer Base – 100+ and Growing

Airspan s customer base of medium and large carriers is

Airspan’s
characterized by well thought-out business plans and a desire for
longstanding vendor relationships
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Geographic Revenue Diversity

WiMAX Embraced Globally

North America
18% Latin America
25%

Asia
12%
Europe, Africa
Middle East
45%

Airspan 12 Months 2008 revenues

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Wireless Applications

Application Representative Customer Opportunity

• Displacement
p of copper
pp
• Cost effective new build & reach expansion
Displacement • “Option” on Next-Gen Mobile
• Existing budgets
• Flexible network scaling

• Expand cellular coverage to wireless/DSL service

Extension • Expand capacity of cellular network with Mobile WiMAX
• Flexible scaling and leverages cellular footprint

• Entire Next-Gen network build-out

Greenfield
• Large
g Greenfield deployments
p y

• Remote monitoring and control

Verticals • Automation to real-time activities and processes
• Value-added services

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 Market Spotlight – Dominating the 3.65GHz Market in the U.S.

June 2007 FCC opens 3.65 GHz frequency spectrum

• Every operator can get a license
Airspan US Mark
A

• $210 application fee, online application on the FCC website

• The 3.65GHz band can only be used for wireless broadband services

November 2007 First operators register, 410 applicants to date

• Wireless ISPs, Regional TelCos, Municipality WiMAX, Backhaul,
Campus/Enterprise, Security Surveillance, Oil/Gas/Utilities
ket Pene

December 2007 Airspan receives FCC approval on HiperMAX base station

Airspan received FCC approval on compact MicroMAX base

etration

April 2007
station and full suite of subscriber units

TODAY Airspan has the largest market share in this

band in the United States
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Scalable Distribution Strategy

Diverse and expanding market opportunity addressed by established direct and

indirect channels – enables lower cost “force multiplier” for extra revenue

Direct Sale OEM Partners

Resellers Strategic Development Partners

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Focus Return on Investment

• Right products to address growing market

• Focus on Stimulus initiatives
• Expanded selling through more channels
• Exploit huge drive for broadband connectivity in international developing markets
(DSL for the next 5M people)
• Enter Mobile WIMAX market with best-in-class differentiated products, top flight
f
reference d Tier
accounts and Ti 1 partners
• Operating cost reduction
• Streamline product portfolio
• Improve R&D efficiency

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Key Takeaways

• Solid market share – with the right products to grow revenues

• Improving well managed business fundamentals
• Sell into worldwide WiMAX market growth
• Fully leverage broad customer base

• Location centric market continuing to provide global growth opportunities

• Mobile market addressed by fully featured Wave 2 solutions from Airspan’s

• Demonstrated product leadership and differentiation

• Leveraging expertise to become a dominant wireless systems provider

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End-to-End WiMAX Innovation

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