CERAGON NETWORKS REPORTS FOURTH QUARTER AND YEAR-END 2008 FINANCIAL RESULTS

TEL AVIV, Israel, February 4, 2009 - Ceragon Networks Ltd. (NASDAQ and TASE: CRNT), a leading provider of high-capacity wireless backhaul solutions, today reported results for the fourth quarter and year which ended December 31, 2008.

Revenues for the fourth quarter of 2008 were $56.8 million, up 23.0% from $46.1 million for the fourth quarter of 2007 and down 2.3% from $58.1 million in the third quarter of 2008.

Net income in accordance with US Generally Accepted Accounting Principles (GAAP) for the fourth quarter of 2008 was $2.7 million or $0.07 per basic and diluted share, compared to net income of $4.4 million in the fourth quarter of 2007, or $0.13 per basic share and $0.12 per diluted share.

On a non-GAAP basis, net income for the fourth quarter, excluding $594,000 of equity-based compensation expenses, was $3.3 million, or $0.09 per basic and diluted share. Non-GAAP net income for the fourth quarter of 2007 was $4.9 million, or $0.15 per basic share and $0.14 per diluted share (please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP).

Revenues for the full year of 2008 were $217.3 million, up 34.2% from $161.9 million in 2007. Net income on a GAAP basis for 2008 was $26 million or $0.70 per basic share and $0.68 per diluted share including $11.2 million of tax benefit relates to the initial creation of deferred tax asset in the second quarter of 2008. Net income for the year 2007 was $13.1 million or $0.44 per basic share and $0.41 per diluted share.

On a non-GAAP basis, net income for 2008 was $17.3 million, or $0.47 per basic share and $0.45 per diluted share compared to a non-GAAP net income of $15.3 million, or $0.52 per basic share and $0.48 per diluted share for 2007.

Gross margin on a GAAP basis in the fourth quarter of 2008 was 33.4% of revenues. Gross margin on a non-GAAP basis in the fourth quarter of 2008 was 33.5% of revenues.

Cash and cash investments at the end of the quarter were $97.8 million.

“In 2008 we continued to achieve excellent growth based on the strong foundation we’ve been building for several years” Said Ira Palti, President and CEO of Ceragon. The underlying drivers of our business, such as growth in mobile data usage and mobile subscriber growth, are part of long term trends expected to continue for several years. Meanwhile, we lack short term visibility as customers focus on maintaining flexibility, reducing inventory and conserving cash in response to the spreading global financial crisis. We will manage through this period by staying close to our customers, capitalizing on our strong position, and preparing to take the company to the next level once economic conditions improve.”

A conference call discussing Ceragon’s results for the fourth quarter of 2008, will take place today, February 4, 2009, at 9:00 a.m. (ET). Investors are invited to join the Company’s teleconference by calling (800) 230-1093 or international (612) 332-0228 at 8:50 a.m. ET. The call-in lines will be available on a first-come, first-serve basis.

If you are unable to join us live, the replay numbers are: (800) 475-6701 or international (320) 365-3844, Access code 980455.

A replay of both the call and the webcast will be available through March 4, 2009.

About Ceragon Networks Ltd.

Ceragon Networks Ltd. (NASDAQ and TASE: CRNT) is a leading provider of high capacity wireless backhaul solutions that enable wireless service providers to deliver voice and premium data services, such as Internet browsing, music and video applications. Ceragon’s wireless backhaul solutions use microwave technology to transfer large amounts of network traffic between base stations and the infrastructure at the core of the mobile network. Ceragon designs solutions to provide fiber-like connectivity for circuit-switched, or SONET/SDH, networks, next generation Ethernet/Internet Protocol, or IP-based, networks, and hybrid networks that combine circuit-switched and IP-based networks. Ceragon’s solutions support all wireless access technologies, including GSM, CDMA, EV-DO and WiMAX. These solutions address wireless service providers’ need to cost-effectively build-out and scale their infrastructure to meet the increasing demands placed on their networks by growing numbers of subscribers and the increasing demand for premium data services. Ceragon also provides its solutions to businesses and public institutions that operate their own private communications networks. Ceragon’s solutions are deployed by more than 150 service providers of all sizes, as well as in hundreds of private networks, in nearly 100 countries. More information is available at www.ceragon.com

Ceragon Networks®, CeraView®, FibeAir® the FibeAir® design mark and Native² are registered trademarks of Ceragon Network s Ltd., and Ceragon™, PolyView™, ConfigAir™, CeraMon™, EtherAir™, QuickAir™, QuickAir Partner Program™, QuickAir Partner Certification Program™, QuickAir Partner Zone™, EncryptAir™ and Microwave Fiber™ are trademarks of Ceragon Networks Ltd.

This press release may contain statements concerning Ceragon’s future prospects that are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections that involve a number of risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates. These are important factors that could cause actual results to differ materially from forecasts and estimates. These risks and uncertainties, as well as others, are discussed in greater detail in Ceragon’s Annual Report on Form 20-F and Ceragon’s other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and Ceragon undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made.

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CERAGON NETWORKS REPORTS FOURTH QUARTER AND YEAR-END 2008 FINANCIAL RESULTS