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CERAGON NETWORKS REPORTS SECOND QUARTER 2008 FINANCIAL RESULTS

TEL AVIV, Israel, July 21, 2008 - Ceragon Networks Ltd. (NASDAQ and TASE: CRNT), a leading provider of high-capacity Ethernet and TDM wireless backhaul solutions, today reported results for the second quarter which ended June 30, 2008.

Revenues for the second quarter of 2008 were $55.2 million, up 47.9% from $37.3 million for the second quarter of 2007 and 17% from $47.2 million in the first quarter of 2008.

Net income in accordance with US Generally Accepted Accounting Principles (GAAP) for the second quarter of 2008 was $15.5 million or $0.42 per basic share and $0.40 per diluted share, compared to net income of $2.9 million in the second quarter of 2007, or $0.10 per basic share and $0.09 per diluted share.

Net income in the second quarter of 2008, included a tax benefit of $11.2 million, reflecting mainly the future benefit of the Company’s net operating losses. As a result of having established a pattern of profitability, accounting rules required the Company to create a deferred tax asset in the same amount, which will be utilized over time as taxes on income.

On a non-GAAP basis, net income for the second quarter, excluding $654,000 of equity-based compensation expenses and a tax benefit of $11.2 million, was $4.9 million, or $0.13 per basic and diluted share. Non-GAAP net income for the second quarter of 2007 was $3.3 million, or $0.12 per basic share and $0.11 per diluted share. The growth in non-GAAP net income in the second quarter of 2008 was 50% when compared to the second quarter of 2007 (please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP).

Gross margin on a GAAP basis in the second quarter of 2008 was 33.9% of revenues. Gross margin on a non-GAAP basis in the second quarter of 2008 was 34.0% of revenues.

Cash and cash investments at the end of the quarter were $108 million. During the second quarter $7.4 million was paid to the Israeli Office of the Chief Scientist ("OCS") to retire all the debt remaining from the arrangement reached with the OCS in December 2006.

“The global trends driving our business continue to strengthen,” said Ira Palti, President and CEO of Ceragon. “Q2 revenues exceeded expectations, setting another new record. Q2 results reflected the growth in the Asia Pacific region as well as excellent demand from our OEM customers. Our book-to-bill ratio for the quarter continues to be above one, which puts us on track to grow more than 35% in 2008. We are also encouraged by the increasing interest in our IP solutions, which is building faster that we expected. We are working on numerous opportunities, including both migration to IP and new IP-based networks.”

A conference call discussing Ceragon’s results for the second quarter of 2008, business conditions, outlook and guidance, will take place today, July 21, 2008, at 9:00 a.m. (EDT). Investors can join the Company’s teleconference by calling (800) 230-1059 or international (612) 332-0107 at 8:50 a.m. EDT.

Investors are also invited to listen to the call live via the Internet by accessing Ceragon Networks’ website at the investors’ page: http://www.ceragon.com/ir_events.asp selecting the webcast link, and following the registration instructions.

If you are unable to join us live, the replay numbers are: (800) 475-6701 or international (320) 365-3844, Access code 931228.

A replay of both the call and the webcast will be available through August 21, 2008.

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® and the FibeAir® design mark 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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