Welcome to the major leagues of debt. Collateralized debt obligations, almost always referred to as a CDOs, are horrendously complicated deals that often leave anyone without a MBA wondering what was put into these CDOs.

The first thing to understand about bonds, (aka debt) is that bonds are often backed by something else. Think about your home mortgage. If you don't pay your mortgage, the bank can take the house. You end up homeless, and the bank sells the house to pay off the rest of that mortgage. There is something "backing" that mortgage; something lender can fall back on, if you don't pay your bills like a good human being. That's called collateral.

CDOs are one flavor of an entire sector of investing called structured finance, and they are also backed. CDOs, in the simplest concept, are just bonds backed by something else. In most cases, a CDO is backed by a collection of various types of debt. CDOs can be home mortgages, or other types of debt like credit cards, auto loans, and personal loans. Most of these types of debt are usually considered a bit more risky and they don't have the backing that a home loan does. So, if you think it through, you can imagine that CDOs are usually considered a risky investment.

To take a step further, understand that CDOs have multiple flavors within each CDO. These flavors are called tranches. If you've taken French, you might recognize the word, it means "slice" or "portion." Each slice of that CDO you invest in is a little different and carries different amounts of risk.

You could invest in the lowest risk tranche of the CDO, which would provide you lower risk. But, you don't get a good return on that investment. Or, you can be the heroic adventurer of bonds and invest in the lowest-grade tranche of the CDO. You'll make an amazing return, but if the economy even looks at you wrong, you might lose the entire investment.

CDOs aren¿t easy, and are almost always invested in by mutual funds, insurance companies and hedge funds. As an individual investor, you will probably not come across a CDO you can participate in.

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Wednesday, June 25, 2008

Ceragon Receives $5 Million Follow-on Order From a Leading Mobile Operator in Mexico

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TEL AVIV, Israel, June 25, 2008 /PRNewswire-FirstCall via COMTEX/ ----Ceragon Networks Ltd. (NASDAQ: CRNT)(TASE: CRNT), a leading provider of high-capacity wireless backhaul solutions, today announced that it was awarded a $5 million follow-on equipment order from one of the leading mobile operators in Mexico. Ceragon's equipment will be used as part of a large-scale infrastructure expansion that includes capacity upgrades for an existing 2.5G network as well as preparation to support advanced 3G services in the near future. This order is the recent addition to an ongoing relationship between Ceragon and its esteemed Mexican customer since the year 2000.

Mexico is fast growing mobile communications market. According to a report from BuddeComm Mexico's mobile industry is growing at a yearly rate of around 22%, driven by a booming GSM market.

Ceragon's FibeAir(R) solutions will be used to deliver high capacity mobile backhauling in a 2xSTM-1 configuration. The advanced microwave systems are capable of operating in the 6 to 38 GHz frequency bands. Using single or dual independent, hot-swappable carriers with a cross-polar interference canceller (XPIC) mechanism, Ceragon solutions offer unmatched flexibility and reliability.

"We continue to strengthen our relations with our business partners in all regions of the world," said Ira Palti, President and CEO of Ceragon Networks. "This selection by a leading operator in a significant mobile market is another vote of confidence in our technological innovation, high quality service and customer-focused support."

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 http://www.ceragon.com.

Ceragon Networks(R), CeraView(R), FibeAir(R) and the FibeAir(R) design mark are registered trademarks of Ceragon Networks 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.

 Company Contact: Yoel Knoll
   Ceragon Networks Ltd. +972-3-766-6419 yoelk@ceragon.com Investor Contact: Vered Shaked Ceragon Networks Ltd. +972-3-645-5513
   ir@ceragon.com

SOURCE Ceragon Networks Ltd

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