1105542--3/12/2008--AIRSPAN_NETWORKS

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{customer, product, revenue}

{operation, international, foreign}

{acquisition, growth, future}

{property, intellectual, protect}

{stock, price, operating}

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We may continue to incur substantial losses and negative operating cash flows and may not succeed in achieving or maintaining profitability in the future. If we are unable to develop and successfully sell WiMAX certified mobile products in a timely fashion, our business will be materially adversely affected. Any reduction in expenditures by communications service providers could have a negative impact on our results of operations. Since our revenues may vary from quarter to quarter and a significant percentage of our expenses are fixed and do not vary with revenues, our quarterly operating results are volatile and difficult to predict, which may negatively affect our stock price. If we are not able to implement a program to reduce product costs over time, introduce new products or increase sales volume to respond to declines in the average selling prices of our products, our gross margin may decline. If we are unable to compensate for declining sales of obsolescent products with sales of new WiMAX products, our revenues will continue to decline. Since we incur most of our operating expenses and a portion of our cost of goods sold in foreign currencies, fluctuations in the values of foreign currencies could have a negative impact on our profitability. Rapid technological changes and evolving industry standards, frequent new product introductions and short product life cycles may adversely affect our results of operations. The adoption of open standards in the broadband wireless communications industry has resulted in increased competition. If we are not able to implement a program to conform our products to industry standards, our revenues may decline Competition from larger, better-capitalized or emerging competitors could result in price reductions, reduced gross margins and loss of or diminished growth of market share. An inability to overcome competition from alternative communication systems could adversely affect our results of operations. We currently depend on a few key customers for substantially all of our sales. A loss of one or more of those customers could cause a significant decrease in our net revenue. Many of our customers execute short-term purchase orders or contracts that allow our customers to terminate without significant penalties. Changes in telecommunications regulation or delays in receiving licenses could adversely affect many of our customers and may lead to lower sales. Our sales cycle is typically long and unpredictable, making it difficult to accurately predict inventory requirements, forecast revenues and control expenses. We make estimates relating to customer demand and errors in our estimates may have negative effects on our inventory levels, revenues and results of operations. Our international sales may be difficult and costly as a result of the political, economic and regulatory risks in those regions. We may not be able to establish or expand our relationships with major system integrators and telecommunications equipment OEMs, which would harm our ability to generate revenue. Our operations in Israel may be disrupted by political and military tensions in Israel and the Middle East. Our dependence on key suppliers may result in product delivery delays if they do not have components in stock or terminate their non-exclusive arrangements with us. Our dependence on contract manufacturers may result in a material adverse effect on our business if they are unable to fill our orders on a timely basis or if they terminate their non-exclusive agreements with us. If we lose Eric Stonestrom, our Chief Executive Officer, or any of our other executive officers, we may encounter difficulty replacing their expertise, which could impair our ability to implement our business plan successfully. We may not have adequate protection for our intellectual property, which may make it easier for others to misappropriate our technology and enable our competitors to sell competing products at lower prices and harm our business. Our products may infringe on the intellectual property rights of third parties, which may result in lawsuits that could be costly to defend and prohibit us from selling our products. A material defect in our products that either delays the commencement of services or affects customer networks could seriously harm our credibility and our business, and we may not have sufficient insurance to cover any potential liability. We have made, and may continue to make, strategic acquisitions or enter into joint ventures. If we are not successful in operating or integrating these acquisitions or joint ventures, our business, results of operations and financial condition may be materially and adversely affected. Our use of the Credit Facility from Silicon Valley Bank presents certain risks. If our stock price falls below $1.00 per share, our common stock may be de-listed from the NASDAQ Global Market. Our projected demand for capital in future periods may increase and our ability to access capital on acceptable terms could decrease significantly and may adversely affect our results of operations and/or business prospects. Our projected demand for capital in future periods may change quickly and may adversely affect our results of operations and/or prospects. We have a significant shareholder whose interests may conflict with other shareholders of the Company.

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1105542--3/12/2008--AIRSPAN_NETWORKS_INC