Ceragon Networks The Premier Wireless Backhaul SpecialistCompany Presentation February 2011

Safe Harbor

Statements contained in this presentation that are not historical facts, including statements regarding the consummation of the transaction, and the timing thereof, the expected benefits of the transaction, the future market for the companies' products, future financial and operating results, plans, objectives, expectations and intentions, including plans with respect to future products and the continued support of Nera customers after the closing of the transaction, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. Many of these risks and uncertainties cannot be predicted with accuracy and some might not even be anticipated. Some of the factors that could significantly impact the forward-looking statements in this press release include the risk that the businesses will not be integrated successfully; the risk that any synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers, the risk that Nera business may not perform as expected, and other risks, some of which are discussed in Ceragons annual reports on Form 20-F filed with the Securities and Exchange Commission under the caption Risk Factors. Any forward-looking statement is qualified by reference to these risks factors. These risks and factors are not exclusive, and Ceragon undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release. Ceragons public filings are available from the Securities and Exchange Commissions website at www.sec.gov or may be obtained on Ceragons website at www.ceragon.com

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Proprietary and Confidential

Ceragon and Nera a combination that delivers MORENera Networks Incorporation: 1947 Revenues in 2009: $292 M A wholly owned subsidiary of Eltek ASA, traded on the Oslo Stock Exchange under [ELT] Leadership in long-haul products Established project management capabilities

Ceragon Networks Incorporation: 1996 Revenues in 2010: $184 M NASDAQ: CRNT Leadership in short-haul products

Combination creates the Premier Wireless Backhaul Specialist

Proprietary and Confidential

Why Premier Wireless Backhaul Specialist?Capacity Cost-Efficiency Innovation Integration Attention

Specialist

Generalist

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Proprietary and Confidential

MORE Market ShareGlobal Total Microwave Revenue$1,200,000 300,000

Global Total Microwave Shipments

$1,000,000

250,000

$800,000

200,000

$600,000

150,000

$400,000

100,000

$200,000

50,000

$

Rolling 4 Quarter 4Q 09 - 3Q 10 [source: SLR]

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Proprietary and Confidential

MORE ScaleStronger presence in every region

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Proprietary and Confidential

MORE Customers

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Proprietary and Confidential

Two Product Lines Pre MergerShort HaulNetMaster Network Management System

Long HaulEvolution Long Haul by NERA

Evolution by NERA

LH All Indoor

LH Split mount Evolution IP LH (XPAND-IP / Metro)

XPAND-IP / Metro

PolyView Network Management System

FibeAir by CERAGON

FibeAir Long Haul by CERAGON

LH All Indoor IP -10 / 1500R

LH Split mount FibeAir LH (IP-10 / 3200T)

Long HaulLong Experience Base by Nera

SDH Long Haul radios since 1993 More than 60,000 TRX installed base Patented technologies results inOPEX savings

Common platform concept withunique flexibility with SDH/SONET or Native Ethernet

Turn Key specialists with extensivesystem design and services expertise

Services ExpertiseProprietary and Confidential

Short HaulMore IP capabilities with Ceragon

Ethernet High Capacity radios since 2000 More than 120,000 IP-10 installed base Culture of innovation Risk free migration to LTE/4G Exceptional Reliability >112 Years Highest possible capacities Operational Excellence for mass volume production Reliable

IP CapabilitiesProprietary and Confidential

Comprehensive Products & SolutionsShort Haul Access Aggregation Long Haul Trunk

High Volume Cost Efficiency & Operational Excellence

Turn-Key, Services Experience & Project Management Expertise

Network Management System FibeAir IP-10 E-series & G-seriesEthernet or Eth+TDM

Evolution IP Long HaulEthernet or Eth+TDM

FibeAir 1500RSDH / SONET

IP-10 CLHCompact LH 1+1/ 2+2 Split Mount/ All-Indoor All-Indoor

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Proprietary and Confidential

NMS - Network Management SystemPolyView NetMaster

FibeAir Network

Evolution Network

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Proprietary and Confidential

MORE ServicesStrong Project Management & Turnkey Capabilities

Plan

Deliver

Build

Operate

Maintain

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Proprietary and Confidential

Global OrganizationPresident & CEO Ira Palti

EVP PMI Per Arne Henaes

EVP Global Business Eran Westman VP Projects & After Sale Ole Lars Oye VP Channel & KAM Trevor Gordon

EVP LH Eyal Assa

EVP SH Hagai Zyss

EVP Marketing & BD Udi Gordon

EVP Operations Gil Solovey

EVP HR Sharon Ganot

EVP & CFO Tsipi Kagan

VP Product Strategy Eirik Nesse

VP Legal & General Counsel Donna Gershowitz VP Finance Uzi Sharabi

IndiaRam Prakash Tripathi

APAC Peter Humphreys

Europe Thomas Knudsson

AfricaJohn Early

North AmericaJayne Leighton

Latin AmericaBilly Cain

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Proprietary and Confidential

Why CeragonComplete and innovative product portfolio: All packet microwave radio Optional risk free migration from TDM to Ethernet Integrated networking functions, TDM and Ethernet Highest possible capacities Exceptional system gain and spectral efficiency Company: Widely deployed largest microwave specialist Proven turnkey project expertise Culture of innovation A range of channel and solution partnerships Financially sound and rapidly growing

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Proprietary and Confidential

Portfolio Overview and Technology

Making 3G/4G Broadband Profitable

3 simple steps for successful wireless transport design1. Squeeze maximum capacity from available spectrum- Maximize return on investment

2. Focus on Quality of Experience- Differentiated services for differentiated revenues

3. Choose a modular risk-free approach- Keep revenue generating services

Proprietary and Confidential

One Platform, More BenefitsLess is MORE

LatencyMORE

MORE

Synchronization OptionsMORE

CapacityMORE FibeAir IP-10

Redundancy OptionsMORE

System GainMORE

Service Management Capabilities

MORE

Migration Options

Carrier Ethernet Functionality

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Proprietary and Confidential

Evolution IP-10 Fully Meets Any Network Scenario

Provides optimal and flexible solution for operators network strategyProprietary and Confidential

Unique Features for Microwave Backhaul Increasing Capacity & spectral efficiency Increasing QoS, reducing latency Improving E2E synchronizationEnhanced QoS Packet Cut Through Sync Optimized Transport

Adaptive Bandwidth Recovery (ABR)

Asymmetrical Links

Advanced Multi Radio

Adaptive Power ACM

Enhanced Header Compression

Payload Compression

Building Blocks for enhanced Network Performance20Proprietary and Confidential

Capacity: Efficiency at All Levels

Spectral

Modulation Spectrum classes Packet compression Latency/PDV System gain Adaptive Power ACM QoS mechanism Resiliency (ABR, ) Asymmetricity

link

Wireless Network

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Proprietary and Confidential

Enhanced Compression Techniques Multi-Layer Header Compression Payload compression

Header

Payload

Header

Payload

CH

Compressed Payload

CH

Compressed Payload

CHCH = Compressed Header

Compressed Payload

CH

Compressed Payload

Up to 150% more capacityProprietary and Confidential

Enhanced packet compression mechanism Improved Ethernet throughput over the radio link No affect on user trafficBand width (MHz) Modulation Radio Capacity (Mbps) Ethernet Capacity L2 Header Compression (Mbps) 64 Byte 58 78 111 151 188 229 255 268 Traffic Model 2 * 48 64 92 124 155 189 210 221 Ethernet Capacity Multilayer Header and Payload Compression (Mbps) Traffic 64 Byte Model 2 * 113 55 152 74 220 106 295 144 365 179 447 218 495 242 529 256

Average Packet Size ETSI 28 ETSI 28 ETSI 28 ETSI 28 ETSI 28 ETSI 28 ETSI 28 ETSI 28 QPSK 8 PSK 16 QAM 32 QAM 64 QAM 128 QAM 256 QAM 256 QAM 41 55 78 105 130 158 176 186

* ITU G.8261 Traffic Model 2 in collaboration with 3GPP 60% of the load, size packets (1518 octets) 30% of the load, size packets (64 octets) 10% of the load, size packets (576 octets)

~40% gain

Proprietary and Confidential

Asymmetric Bandwidth CapabilityCapacity

Allocate more capacity to downlink traffic Uniquely available from Ceragon within an existing Point-toPoint FDD frequency planning environment

Download

Upload

Asymmetric channel within FDD frequency planBTS

Aggregation Network Aggregation / Hub site

50% More Downlink Capacity - at no extra cost!24Proprietary and Confidential

Asymmetrical links PMP like in any bandsFor better DL burst capability We use one 28MHz channel: Transmit to 4 directions (same information), and receive 4 flows of 7MHz from each direction (28MHz channel divided to 4 frequencies). f2LTE7MHz

UL

1 Sector Antenna or 4 Antennas

f1

LTE

7MHz

UL DL28 MHz

Mediation device

LTE7MHz

UL

7MHz

LTE7MHz

UL

Average 50Mbps for each LTE site, but we allow burst of up to 200Mbps (before compression)

At the UL side, each tail have capacity of 7MHz (up to ~50Mbps) At the DL we get a bandwidth allowing rates of up to 200Mbps to any site

Better spectral utilization25Proprietary and Confidential

IP-10 based Wireless Native2 ringsNative2

1+0Native2FibeAir IP-10

1+0Native2

Tail site #1

1+0

FibeAir IP-10

Ring site #1FibeAir IP-10

Packet or TDM based fiber aggregation network or leased lines

FibeAir IP-10

Native2

Tail site #2

1+0

Wireless Native2 RingNative2

Fiber siteNative2RNC / BSC

1+0FibeAir IP-10

1+0

Ring site #2

Native2

1+0

FibeAir IP-10

Ring site #3FibeAir IP-10

Tail site #3

Redundancy And Network Level ResiliencyProprietary and Confidential

Doubles the Ring CapacityProtected-ABR uses Standby Capacity for EthernetTDM Voice500 450 400 350 300 250 200 150 100 50 0

Ethernet Data

Calculation assumptions:

Normal operation: up to 6 times higher Ethernet capacity

1) 2) 3) 4)

Assuming a 28 Mhz wireless ring. All 72 E1s are delivered at all times 64 bytes frame size In terms of additional capacity for Ethernet traffic 5) Worst case and best case with SNCP 1+1 is the same 6) In SNCP 1+1 no difference between normal and failure states

SNCP 1:1 in normal operation with Protected-ABR

SNCP 1+1 in normal operation or worst case for SNCP 1:1 with Protected-ABR

Double the capacity for data

No impact on TDM in failure state

Proprietary and Confidential

Radio Technology Leader Unique RFIC Technology

IP-10

MTBF > 112 years Highly integrated RFIC All SMT Very low component count Very easy manufacturing (excellent yield) RFU-C

Technological Breakthrough - The most complex RFIC in the world

Proprietary and Confidential

RF UnitsBase-band unit can work with one of the following:

RFU-HP

RFU-HP / Sp.Div

RFU-C Outdoor Standard Power 6-38 GHz

Indoor or Outdoor High Power 6-11 GHz

Proprietary and Confidential

Base-band unitsEthernet OnlyIP-10 E-Series IP-10Q

Ethernet + TDMIP-10 G-Series

Access Carrier Eth switch Nx FE, Nx GbE Scalable for multi carriers

AggregationFull GE pipes Ultra-high density 4 carriers at 1RU

Access & AggregationCarrier Eth switch Nx FE, Nx GbE Scalable for multi carriers Full redundancy nxE1/DS1, ch-STM-1/OC3 T1 Cross Connect

Optimized Offering for Different Market SegmentsProprietary and Confidential

Evolution IP-10 G-SeriesT-Card slot Fans drawer

Craft Terminal (DB9)

External Alarms (DB9) User Channel (optional) (RJ45)

16 x E1/DS1s (optional) Protection Interface (RJ45) 2 x GE combo ports Electrical (RJ45) or Optical (SFP) 5 x FE Electrical (RJ45)

Engineering order-wire (optional)

RFU interface (N-Type)

GND Power -48V DC (dual-feed option)

Split-mount architecture - Compatible with all RFUs. Dimensions: Height - 1RU , width < 19" , Depth < 12" (ETSI)Proprietary and Confidential

T-Cards for IP-10 G-Series Optional add-on cards

STM1/OC3 Mux T-Card

16 x E1/DS1 T-Card

Proprietary and Confidential

Evolution IP-10 Integrated Nodal Solution Same 1RU IP-10 unit can be used for terminal and nodal solution The solution is stackable and modular Forms a single unified nodal device Common Ethernet Switch Common E1/DS1s Cross Connect Single IP address Single element to manage

Proprietary and Confidential

IP-10 - Carrier Ethernet functionalityStandardized services MEF-9 & MEF-14 certified for all service types (EPL, EVPL and E-LAN)

Scalability

Quality of Service Advanced CoS classification Advanced traffic policing/rate-limiting CoS based packet queuing/buffering with 8 queues support Hierarchical scheduling schemes Traffic shaping Tail-drop or WRED Color-awareness (CIR/EIR support)

Reliability

Service Management Extensive multilayer management capabilities Ethernet service OA&M 802.1ag and Y.1731. Advanced Ethernet statistics

Up to 1Gbps per radio carrier Up to 2Gbps per channel (with XPIC) Multi-Radio Integrated non-blocking switch with 4K VLANs 802.1ad provider bridges (QinQ) Scalable nodal solution Scalable networks (1000s of NEs)

Highly reliable & integrated design Fully redundant 1+1/2+2 HSB & nodal configurations Hit-less ACM (QPSK 256QAM) for enhanced radio link availability RSTP/MSTP Wireless Ethernet Ring/Mesh support 802.3ad link aggregation Fast link state propagation