Issued Real World News

[Georgia Bard]

(NASDAQ: FLRE), Floware's BWA System Selected By Vivendi-Hungary; Two Hungarian Carriers to
Deploy Floware's WALKair


Business Editors

OR YEHUDA, Israel--(BUSINESS WIRE)--July 12, 2001--Floware
Wireless Systems (NASDAQ: FLRE), a leading provider of Broadband
Wireless Access (BWA) solutions, today announced that a leading
Hungarian telecommunications operator, Vivendi Telecom Hungary (VTH),
has chosen Floware's WALKair BWA system for new wireless networks in
Hungary.
This is the second Hungarian telecommunications operator to select
Floware products. During Q2 2001, Floware received initial purchase
orders valued at approximately $1,000,000 from its partner Siemens
Information and Communication Networks Group (ICN) in Hungary and
shipped equipment for these operators.
Vivendi-Hungary received a national license in Hungary's wireless
frequency auction, which was completed in early June this year.
Organized by the Budapest Telecommunication Authority (BHF), the
auction resulted in license grants in the 3.5GHz band to five
operators. Vivendi-Hungary is a subsidiary of the French's
Vivendi-Universal. It plans to install the network and to deliver
services starting this year.
Vivendi-Hungary will use Floware's BWA products in the "last mile"
to connect business subscribers to its telecommunications backbone,
thereby quickly deploying new infrastructure and providing advanced
data and voice services to small- and medium-sized enterprises (SME)
customers, initially in the Budapest metropolitan area, and later in
other areas.
Commenting on the news, Amnon Yacoby, CEO of Floware, said, "With
large investments in telecom infrastructure in Eastern Europe to help
overcome inadequate infrastructure, fixed wireless is a logical choice
for many operators to speed up network installation, and to
cost-effectively meet the growing needs of business customers. We are
pleased that our advanced system has been chosen by two Hungarian
operators, just a few weeks after the close of Hungary's frequency
auction. The choice of Floware by Vivendi-Hungary validates the BWA
business case, and demonstrates WALKair's technological advantage."

About Vivendi-Hungary

The Vivendi Telecom Hungary (VTH) Group, the second largest wire
telecommunications company in Hungary, is the Hungarian arm of Vivendi
Universal, a French-based international giant which owns Universal
Studios, Canal+ (France), Cegetel, several mobile operators in France
and other regions, and other holdings. Since June 2000, it has served
the inhabitants, enterprises and institutional clients of 9 primary
Hungarian regions. In 2000, Vivendi Universal had revenues of 52.5
billion euros. It manages V-fon, a local utility telephone service
provider company covering six Hungarian counties, V-com enterprise
offering nationwide data transmission services and V-net, a nationwide
Internet service provider to be launched in the near future. The
company has invested US $550 million in Hungary and employs a staff of
approximately 1,250. For more information visit www.vivendi.hu

About Siemens ICN

Siemens Information and Communication Networks Group (ICN) is a
leading provider of integrated voice and data networks for
enterprises, carriers and service providers. Its comprehensive
portfolio comprises, in particular, IP-based convergence solutions,
and a full range of products for broadband access, optical transport
networks as well as the integration, services and applications
business. The Siemens Group thus provides complete solutions from a
single source for the infrastructure of the Next Generation Internet,
a prerequisite for mobile business. In fiscal year 2000 (year ended
September 30), ICN posted sales of 11.4 billion euro, and earnings
before interest and taxes (EBIT) of 692 million euro. ICN employs
53,000 people worldwide. Further information about ICN is available
at: http://www.ic.siemens.com/networks

About Floware

Floware Wireless Systems Ltd. is a leading provider of
point-to-multipoint fixed broadband wireless access (BWA) systems.
These systems are used mainly by new carriers, that connect business
customers in the "last mile." Floware's WALKair system enables
carriers to provide high-speed Internet access, as well as a wide
range of voice and data services on the 3.5, 10.5, and 26 GHz radio
frequency bands. Floware currently has more than 60 deployments
worldwide. On April 5, 2001, Floware entered into an agreement and
plan of merger with BreezeCOM Ltd., pursuant to which, upon
satisfaction of certain conditions, Floware will merge into BreezeCOM.
For more information, visit Floware's website at www.floware.com.
This press release and statements by Floware in shareholder
reports and public filings, as well as in oral public statements by
Floware's representatives, may contain forward looking statements.
Such statements are subjected to certain facts, risks, and
uncertainties that may cause actual results, events, and performance
to differ materially from those referred to in such statements. The
risks are identified in Floware's registration statement on Form F-1
(Registration Statement No. 333-12290) filed with the Securities and
Exchange Commission.

--30--mem/ny*

CONTACT: Citigate Dewe Rogerson, New York
Eric Burkard, 212/419-4240
E-mail: [e-mail]
or
Floware Wireless Systems
Tali Idan, ([phone]
E-mail: [e-mail]


:=) Gary Swancey