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KPN Selects Ceragon for Next Generation Mobile Network

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Ceragon Networks Ltd.
24 Raoul Wallenberg Street
Tel-Aviv, 69719
Israel



Press release date: February 26, 2008

FibeAir(R) IP-MAX2 High-Capacity Wireless IP Solution Will Ensure Fast and Secure Data Transmissions for KPN's Next Generation Packet Networks

TEL AVIV, Israel, February 26 / / - Ceragon Networks Ltd. (NASDAQ: CRNT) (TASE: CRNT), a leading provider of high-capacity Ethernet and TDM wireless backhaul solutions, today announced that KPN, the leading telecommunications provider in the Netherlands, has again selected Ceragon for high-capacity mobile backhaul applications. Ceragon's solutions are utilized to support KPN's HSDPA network expansion by providing fiber-like data rates to rural cell-sites in which fiber connections are either unavailable or are too expensive to deploy. The financial value of this expansion is about $1 million.

Supporting both native-SDH and native-Ethernet in one single platform, Ceragon's FibeAir IP-MAX2 allows smooth migration to all-IP networks and eliminates the need for replacing or upgrading the switching and radio equipment. The solution employs the highly efficient Adaptive Modulation technology which enables the increase of service coverage of wireless backhaul networks while allowing the use of smaller antennas to reduce capital expenditure.

The rapidly growing demand for KPN's business and consumer services, including VoIP, Internet, and video applications, drives the operator to increase the capacity of its mobile network. Ceragon's FibeAir IP-MAX2 gives KPN the opportunity to expand their network's reach quickly, cost effectively and without compromising on quality and capacity. Moreover, because it supports both native SDH and native Ethernet, FibeAir IP-MAX2 fits in perfectly with KPN's network migration plans.

"Mobile operators across the world are turning to IP/Ethernet in order to cope with the surge in data traffic, which in some regions already exceeds that of voice," said Ira Palti, President and CEO of Ceragon Networks Ltd. "We are happy to extend our relationship with KPN, a leading European carrier, and assist them in providing their customers with a range of value added mobile services."

About KPN

KPN is the leading telecommunications and ICT service provider in the Netherlands, offering wireline and wireless telephony, internet- and TV to consumers and end-to-end telecom and ICT services to business customers. KPN's subsidiary Getronic operates a global ICT services company with a market leading position in the Benelux, offering end-to-end solutions in infrastructure and network-related IT. In Germany and Belgium, KPN pursues a multi-brand strategy in its mobile operations and holds number three market positions through E-Plus and BASE. KPN provides wholesale network services to third parties and operates an efficient IP-based infrastructure with global scale in international wholesale through iBasis.

At December 31, 2007, KPN served over 35 million customers, of which 27 million in wireless services, 5.4 million in wireline voice, 2.4 million in broadband internet and 0.5 million in TV. With 25,500 FTEs (43,531 FTEs including Getronics). KPN posted revenues of EUR 12.6bn in 2007, with an EBITDA of EUR 4.9bn. KPN was incorporated in 1989 and is listed on the Amsterdam, New York, London and Frankfurt stock exchanges.

About Ceragon Networks Ltd.

Ceragon Networks Ltd. (NASDAQ and TASE: CRNT) is a leading provider of high capacity wireless backhaul solutions that enable fiber-like connectivity for SONET/SDH networks, next generation IP-based networks and hybrid networks. Ceragon's FibeAir(R) family of products support all wired and wireless access technologies and address Service Providers' need to cost-effectively build-out and scale their networks to meet increasing demands for bandwidth and premium services. Ceragon's solutions are deployed by more than 150 service providers of all sizes, as well as in hundreds of private networks, in 85 countries. More information is available at http://www.ceragon.com.

Ceragon Networks(R), CeraView(R), FibeAir(R) and the FibeAir(R) design mark are registered trademarks of Ceragon Networks Ltd., and Ceragon(TM), PolyView(TM), ConfigAir(TM), CeraMon(TM), EtherAir(TM), QuickAir(TM), QuickAir Partner Program(TM), QuickAir Partner Certification Program(TM), QuickAir Partner Zone(TM), EncryptAir(TM) and Microwave Fiber(TM) are trademarks of Ceragon Networks Ltd.

Source: Ceragon Networks Ltd

Company Contact: Yoel Knoll, Ceragon Networks Ltd., +972-3-766-6419, yoelk@ceragon.com.

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