TEL AVIV, Israel, July 21, 2008 /PRNewswire-FirstCall via COMTEX/ ----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 +1-800-230-1059 or international +1-612-332-0107 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: +1-800-475-6701 or international +1-320-365-3844, 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(R), CeraView(R), FibeAir(R) and the FibeAir(R) design mark are registered trademarks of Ceragon Network s Ltd., and Ceragon(TM), PolyView(TM), ConfigAir(TM), CeraMon(TM), EtherAir(TM), QuickAir(TM), QuickAir Partner Program(TM), QuickAir Partner Certification Program(TM), QuickAir Partner Zone(TM), EncryptAir(TM) and Microwave Fiber(TM) 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.

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S.
   dollars in thousands, except share and per share data) (Unaudited) Six months ended Three months ended June 30 June 30, 2008
   2007 2008 2007 Revenues $ 102,402 $ 71,273 $ 55,226 $ 37,337 Cost of revenues 67,019 45,462 36,504 23,835 Gross profit 35,383
   25,811 18,722 13,502 Operating expenses: Research and 9,958 6,950 development 5,139 3,460 Selling and marketing 15,124 11,465
   8,098 6,215 General and 3,217 2,134 administrative 1,856 1,015 Total operating $ 28,299 $ 20,549 expenses $ 15,093 $ 10,690
   Operating profit 7,084 5,262 3,629 2,812 Financial income, net 1,625 222 807 49 Income before taxes 8,709 5,484 4,436 2,861
   Tax benefit 11,048 - 11,048 - Net Income $ 19,757 $ 5,484 $ 15,484 $ 2,861 Basic net earnings per $ 0.53 $ 0.20 $ 0.42 $ 0.10
   share Diluted net earnings $ 0.51 $ 0.18 $ 0.40 $ 0.09 per share Weighted average 36,959,822 28,047,219 36,976,800 28,488,649
   number of shares used in computing basic net earnings per share Weighted average 38,870,505 29,934,518 38,910,727 30,715,442
   number of shares used in computing diluted net earnings per share CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands)
   (Unaudited) June 30, December 2008 31, 2007 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 40,498 $ 58,650 Short-term
   bank deposits 23,467 25,997 Marketable securities 9,725 6,399 Trade receivables, net 57,438 40,533 Deferred taxes 6,267 -
   Other accounts receivable and prepaid expenses 11,302 10,888 Inventories 36,926 36,763 Total current assets $ 185,623 $ 179,230
   LONG-TERM INVESTMENTS: Long-term bank deposits 9,199 12,030 Long-term marketable securities 25,389 18,665 Severance pay funds
   4,289 3,268 Deferred taxes 5,765 - Total long-term investments 44,642 33,963 PROPERTY AND EQUIPMENT, NET 6,419 4,447 Total
   assets $ 236,684 $ 217,640 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 35,830 $ 25,173 Deferred
   revenues 2,806 6,702 Other accounts payable and accrued expenses 8,717 14,935 Total current liabilities $ 47,353 $ 46,810
   LONG-TERM LIABILITIES Accrued severance pay 6,646 5,286 Other payables - 4,650 Total long-term liabilities $ 6,646 $ 9,936
   SHAREHOLDERS' EQUITY: Share capital: Ordinary shares 91 91 Additional paid-in capital 283,462 281,086 Other comprehensive
   income (loss) (62) 280 Accumulated deficits (100,806) (120,563) Total shareholders' equity 182,685 160,894 Total liabilities
   and shareholders' equity $ 236,684 $ 217,640 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (U.S. dollars, in thousands) (Unaudited)
   Three months ended Six months ended June 30, June 30, 2008 2007 2008 2007 Cash flow from operating activities: Net income
   $ 15,484 $ 2,861 $ 19,757 $ 5,484 Adjustments to reconcile net income to net cash used in operating activities: Depreciation
   464 315 856 635 Stock-based 654 432 1,298 822 compensation expense Decrease (increase) (18,527) 1,506 (17,599) 1,026 in trade
   and other receivables, net Increase in inventory (2,758) (3,859) (163) (8,670) Increase in trade 8,162 868 3,696 371 payables
   and accrued liabilities Increase (decrease) (1,822) (2,394) (3,896) 1,447 in deferred revenues Increase in deferred (11,207)
   - (11,207) - tax asset Decrease in long (2,232) (38) (4,650) (2,015) term payable Other adjustments 179 3 160 (34) Net cash
   used in $ (11,603) $ (306) $ (11,748) $ (934) operating activities Cash flow from investing activities: Purchase of property
   (805) (499) (1,839) (973) and equipment ,net Investment in short (20,365) - (33,574) - and long-term bank deposit Proceeds
   from short 22,957 482 39,014 3,819 and long-term bank deposits Investment in - - (14,000) (1,200) held-to-maturity marketable
   securities Proceeds from 1,950 855 4,050 4,239 maturities of held-to-maturity marketable securities Net cash provided by $
   3,737 $ 838 $ (6,349) $ 5,885 (used in) investing activities Cash flow from financing activities: Proceeds from 66 4,155 275
   5,318 exercise of options Issuance costs - - (330) - Net cash provided $ 66 $ 4,155 $ (55) $ 5,318 by (used in) financing
   activities Increase (decrease) $ (7,800) $ 4,687 $ (18,152) $ 10,269 in cash and cash equivalents Cash and cash 48,298 15,752
   58,650 10,170 equivalents at the beginning of the period Cash and cash $ 40,498 $ 20,439 $ 40,498 $ 20,439 equivalents at
   the end of the period RECONCILIATION OF NON-GAAP FINANCIAL RESULTS U.S. dollars in thousands, except share and per share data
   Three months ended June 30, 2008 2007 GAAP (as reported) Adjustments Non-GAAP Non-GAAP Revenues $ 55,226 $ 55,226 $ 37,337
   Cost of revenues 36,504 68 (*) 36,436 23,802 Gross profit 18,722 18,790 13,535 Operating expenses: Research and development
   5,139 124 (*) 5,015 3,393 Selling and marketing 8,098 291 (*) 7,807 6,060 General and administrative 1,856 171 (*) 1,685 838
   Total operating expenses $ 15,093 $ 14,507 $ 10,291 Operating profit 3,629 4,283 3,244 Financial income, net 807 807 49 Income
   before taxes 4,436 5,090 3,293 Tax benefit (tax on income) 11,048 11,207 (**) (159) - Net income $ 15,484 $ 4,931 $ 3,293
   Basic net earnings per share $ 0.42 $ 0.13 $ 0.12 Diluted net earnings per share $ 0.40 $ 0.13 $ 0.11 Weighted average number
   of 36,976,800 36,976,800 28,488,649 shares used in computing basic net earnings per share Weighted average number of 38,910,727
   38,910,727 30,715,442 shares used in computing diluted net earnings per share Total adjustments 10,553 (*) Adjustments related
   to equity based compensation expenses according to SFAS 123 (R) (**)Adjustment related to creation of deferred tax asset .
   RECONCILIATION OF NON-GAAP FINANCIAL RESULTS U.S. dollars in thousands, except share and per share data Six months ended June
   30 2008 2007 GAAP (as reported) Adjustments Non-GAAP Non-GAAP Revenues $ 102,402 $ 102,402 $ 71,273 Cost of revenues 67,019
   137 (*) 66,882 45,400 Gross profit 35,383 35,520 25,873 Operating expenses: Research and development 9,958 284 (*) 9,674 6,821
   Selling and marketing 15,124 570 (*) 14,554 11,162 General and administrative 3,217 307 (*) 2,910 1,806 Total operating expenses
   $ 28,299 $ 27,138 $ 19,789 Operating profit 7,084 8,382 6,084 Financial income, net 1,625 1,625 222 Income before taxes 8,709
   10,007 6,306 Tax benefit (tax on income) 11,048 11,207 (**) (159) - Net Income $ 19,757 $ 9,848 $ 6,306 Basic net earnings
   per share $ 0.53 $ 0.27 $ 0.22 Diluted net earnings per $ 0.51 $ 0.25 $ 0.21 share Weighted average number of 36,959,822 36,959,822
   28,047,219 shares used in computing basic net earnings per share Weighted average number 38,870,505 38,870,505 29,934,518
   of shares used in computing diluted net earnings per share Total adjustments 9,909 (*) Adjustments related to equity based
   compensation expenses according to SFAS 123 (R) (**)Adjustment related to creation of deferred tax asset . Contact: Vered
   Shaked Investor Relations Manager Ceragon Networks Ltd. Int'l +972-52-573 -5513 US +1-201-853 0228 vereds@ceragon.com 

SOURCE Ceragon Networks Ltd

Copyright (C) 2008 PR Newswire. All rights reserved **********************************************************************
   As of Thursday, 07-17-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a
   DOWNTREND on 06-10-2008 for CRNT @ $8.92. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com
   SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights
   reserved.