• $17.8 million in revenues for third quarter 2008
• Cash, cash equivalents, short-term investments and restricted cash amounted to $31.1 million at the end of the quarter
• Cost reduction target achieved with continuing focus on attaining profitability
• Significant traction in the U.S. in the 3.65 GHz frequency band -- including FairPoint through Nortel
• Successfully demonstrated a mobile multi-band, interoperable WiMAX network

"We have focused our efforts on achieving our planned cost reductions and we will continue to extend our efforts in the light of the current economic environment. Our goal is to accelerate our efforts to achieve profitability while maintaining critical R&D activity and serving our customer base.

"Targeted operating cost savings have been achieved. However, we are continuing to reduce our operating costs to reflect the challenging economic environment. We have seen the worldwide credit crisis impacting some of our customers' availability of funds, which has contributed to a reduction of our reported revenue for the quarter. We also expect continued short term challenges on the demand side as capital expenditure budgets of our customers face further reductions. However, we remain confident in Airspan's technology and the viability of WiMAX as an alternative to traditional broadband access. Our top priority is the creation of a profitable business from product lines that we have developed," commented Eric Stonestrom, Airspan's President and Chief Executive Officer.

"Commercial activity in the quarter included new contracts and expansion orders with telecom service providers, significant growth in the 3.65 GHz product deployments, and new distribution agreements with vertical segment systems integration partners in defense and the oil and gas sectors. Working together with our partner Nortel, we were also awarded a significant U.S. WiMAX project by FairPoint, a large U.S. telephone operator. This deployment will provide high speed internet service throughout the North-eastern U.S. in a more cost competitive mode than the wireline alternatives and it underscores the potential for WiMAX in providing broadband connectivity on a mass scale," continued Mr. Stonestrom.

Third Quarter Financial Details

Total third quarter revenues decreased year over year by 21% to $17.8 million compared with $22.5 million in the third quarter of 2007. Compared to revenues in the second quarter 2008 of $21.4 million, third quarter revenues decreased by 17%, due primarily to a decrease in non-WiMAX revenues, which amounted to $5.9 million in the third quarter. WiMAX revenues were down by 5% to $12.1 million in the third quarter of 2008, compared to $12.7 million in the second quarter 2008 and by 25% compared to the $16.1 million of WiMAX revenue recorded in the third quarter of 2007. The sequential quarter decrease in WiMAX revenues resulted primarily from several shipments on hold pending receipt of letters of credit. The year over year decrease in WiMAX revenues results primarily from shipments on hold and lower average value shipments to larger customers in the 2008 period.

Gross margin at 31% was slightly lower than the 32% recorded in the second quarter 2008. Gross margin was at 35% in the third quarter of 2007. Total operating expenses for the third quarter of 2008 were $13.5 million, a 14% decrease over the second quarter of 2008, and a 3% decrease compared to the third quarter 2007.

Net loss attributable to common stockholders was $7.8 million or $0.13 per share for the third quarter of 2008, compared with a loss of $8.8 million or $0.15 per share in the second quarter of 2008, and $9.9 million or $0.24 per share in the third quarter of 2007.

Geographically, in the third quarter of 2008, approximately 26% of revenue was derived from customers in Mexico, Latin America and the Caribbean, 27% from customers in Europe, 11% from customers in Africa and the Middle East, 22% from customers in the United States and Canada and 14% from customers in Asia.

Cash, cash equivalents, short-term investments, and restricted cash amounted to $31.1 million compared to $33.1 million at June 29, 2008. As a result of our renegotiated debt facility with Silicon Valley Bank, during the quarter we made an additional drawdown under this credit line of $5.0 million. Days Sales Outstanding (DSOs) were 77 at the end of the third quarter.

"We reached our cost cutting target in the third quarter. We plan to continue reducing overall operating expenditures in light of the general economic uncertainty, while not sacrificing our key commercial and R&D activities. We believe that this focus will allow us to realize additional cost savings in 2009, lowering the quarterly revenue run rate required to achieve breakeven," commented David Brant, Airspan's Chief Financial Officer.

Outlook

The capital expenditure environment has tightened in the last few months and as a result, we are revising our full year revenue outlook to around $80 million. We expect to have more visibility into 2009 in the next conference call.

Investors may also register for the audio webcast of the conference call under the 'financial calendar' tab of the Investor Relations section of the Airspan Web site at http://www.visualwebcaster.com/event.asp?id=52543

Airspan is the industry's leading WiMAX pure player, ranked #1 for IEEE802.16-2004 WiMAX revenue in 2007 and has now been selected for some of the world's largest mobile WiMAX deployments. With direct sales offices throughout Asia, EMEA and the Americas, a worldwide network of resellers and agents, and partnership alliances with major OEMs, Airspan boasts over 100 commercial WiMAX deployments worldwide. www.airspan.com .

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