<html>
  <head>
    <title>
</title></head>
  <body bgcolor="#ffffff"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
      STATES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
      D.C. 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM
      8-K</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
      Report pursuant</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
      Section 13 or 15(d) of the</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
      Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      report (Date of earliest event reported): August 1, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AIRSPAN
      NETWORKS, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
      or
      other jurisdiction of incorporation)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="middle" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">000-31031</font></div>
              </td>
              <td valign="middle" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">75-2743995</font></div>
              </td>
            </tr>
            <tr>
              <td valign="middle" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                  file number)</font></div>
              </td>
              <td align="left" valign="middle" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
                  Employer Identification No.)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="middle" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">777
                  Yamato Road, Suite 310, Boca Raton, Florida </font></div>
              </td>
              <td valign="middle" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33431</font></div>
              </td>
            </tr>
            <tr>
              <td valign="middle" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                  of principal executive offices) </font></div>
              </td>
              <td align="left" valign="middle" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                  code)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div align="left">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(561)
      893-8670</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
      telephone number, including area code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>&#160;Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings">o</font>&#160;Soliciting
      material pursuant to
      Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings">o</font>&#160;Pre-commencement
      communications
      pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings">o</font>&#160;Pre-commencement
      communications
      pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
      into a Material Definitive Agreement</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      August
      1, 2006, Airspan Networks, Inc. (the &#8220;Company&#8221;) and its wholly owned subsidiary,
      Airspan Communications Limited, entered into a Loan and Security Agreement
      (the
&#8220;Loan and Security Agreement&#8221;) with Silicon Valley Bank (&#8220;SVB&#8221;), with respect to
      a revolving credit line. For the two year term of the credit line, the Company
      may, subject to certain adjustments, borrow up to the lesser of (i) $10,000,000
      and (ii) 80% of eligible accounts receivable. A certain portion of the credit
      available to the Company under the credit facility may also be utilized to
      secure letters of credit and foreign exchange contracts, if any, issued by
      SVB.
      The Company anticipates being able to commence draws under the credit facility
      later this week once certain administrative funding conditions are
      addressed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      secure
      its obligations under the Loan and Security Agreement, the Company has granted
      SVB a security interest in all of its assets and has established a receivables
      lockbox account at a financial institution affiliated with SVB. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Advances
      under the Loan and Security Agreement bear interest at SVB&#8217;s prime rate plus a
      percentage ranging from 0.25% to 1.5%, depending on certain financial and
      collateral tests. The Company has also agreed to pay SVB (i) a commitment fee
      of
      $90,000; (ii) an unused facility fee in the amount of 0.375% per year; (iii)
      1%
      per year on the face amount of any issued letter of credit; and (iv) an early
      termination fee of 1% or 0.5% of the principal amount of the credit line if
      the
      facility is terminated by the Company within the first or second year,
      respectively. SVB has retained the right, to, upon limited notice, make
      reasonable adjustments to the definition of eligible receivables. SVB has also
      reserved its right to modify the rate (the &#8220;Advance Rate&#8221;) at which advances are
      made against eligible receivables if the Bank determines, after an audit, that
      there are events, contingencies or risks which adversely affect the Company&#8217;s
      assets . </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Loan and Security Agreement, the Company must maintain a certain tangible
      net worth and liquidity coverage. The Company&#8217;s tangible net worth (which is a
      measure of total assets minus total liabilities minus any amounts attributable
      to goodwill, intangible items and obligations owing to the Company from its
      officers and other affiliates) must be at least the sum of $27,000,000 plus
      50%
      of quarterly net income, plus 50% of proceeds of any sale of stock by the
      Company, plus 50% of any subordinated debt incurred by the Company. The Company
      must also maintain a liquidity coverage ratio of at least 1.5:1 or 1.75:1,
      which
      threshold varies from month to month. The liquidity coverage ratio is the ratio
      of (A) the sum of unrestricted cash and cash equivalents maintained at SVB,
      plus
      50% of unrestricted cash and cash equivalents in the United Kingdom over which
      SVB has a fixed or floating charge, plus 80% of eligible accounts, minus the
      funded debt (which is the debt that the Company owes to SVB and certain other
      creditors) to (B) the funded debt. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Loan
      and Security Agreement provides that, with the exception of certain permitted
      indebtedness and liens, the Company may not incur additional indebtedness or
      liens. Permitted indebtedness is defined to include unsecured trade debt and
      currency hedges incurred in the ordinary course business, subordinated debt
      incurred on terms acceptable to SVB, and capitalized lease and purchase money
      indebtedness not exceeding $1,000,000 in any fiscal year. Permitted Liens are
      defined to include, among other things, certain liens for taxes or assessments,
      purchase money liens on property not exceeding $1,000,000, non-exclusive
      licenses of intellectual property incurred in the ordinary course of business,
      and certain liens incurred in the ordinary course of business. The Loan and
      Security Agreement further provides that the Company may not convey, sell,
      transfer or otherwise dispose of property except for inventory in the ordinary
      course of business and other similar dispositions. In addition, the Loan and
      Security Agreement limits the Company&#8217;s right to enter into a merger or
      acquisition, or make investments in other entities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      the Company believes the credit facility will increase the Company&#8217;s financial
      resources and financial flexibility, the Company&#8217;s use of the credit facility
      does present certain risks.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s ability to borrow under the credit facility is a function of, among
      other things, the Company&#8217;s base of eligible accounts receivable and the Advance
      Rate. If the amount or quality of the Company&#8217;s accounts receivable deteriorates
      or the Advance Rate is adjusted downward</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      the
      Company&#8217;s ability to borrow under the credit facility will be directly,
      negatively affected. If there is a downward adjustment in the borrowing base
      at
      a time when the Company is unable to, within three business days, repay SVB
      the
      amount by which the borrowing base has been decreased, the Company will likely
      be in default under the Loan Agreement. In addition, as discussed above, the
      credit facility requires the Company to satisfy certain financial covenants.
      As
      a result, the Company cannot provide any assurances that it will be able to
      borrow under the Loan and Security Agreement at a time when it most needs money
      to fund working capital or other needs. As noted above, the credit facility
      also
      contains various provisions that restrict the Company&#8217;s use of cash and
      operating flexibility. These provisions could have important consequences for
      the Company, including (i) causing the Company to use a portion of its cash
      flow
      from operations for debt repayment and/or service rather than other perceived
      needs, (ii) precluding the Company from incurring additional debt financing
      for
      future working capital or capital expenditures and (iii) impacting the Company&#8217;s
      ability to take advantage of significant, perceived business opportunities,
      such
      as acquisition opportunities or to react to market conditions. The Company&#8217;s
      failure to meet financial and other covenants could give rise to a default
      under
      the Loan and Security Agreement. In the event of an uncured default, the Loan
      Agreement provides that all amounts owed to SVB are immediately due and payable
      and that SVB has the right to enforce it security interest in the Company&#8217;s
      assets.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Form
      8-K contains forward-looking statements within the meaning of Section 27A of
      the
      Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
      All statements, other than statements of historical facts, including statements
      regarding our strategy, future operations, financial position, future revenues,
      projected costs, prospects, plans and objectives of management, may be deemed
      to
      be forward-looking statements. The words &#8220;anticipates,&#8221; &#8220;believes,&#8221; &#8220;estimates,&#8221;
&#8220;expects,&#8221; &#8220;intends,&#8221; &#8220;may,&#8221; &#8220;plans,&#8221; &#8220;projects,&#8221; &#8220;will,&#8221; &#8220;would&#8221; and similar
      expressions or negative variations thereof are intended to identify
      forward-looking statements, although not all forward-looking statements contain
      these identifying words. We may not actually achieve the plans, intentions
      or
      expectations disclosed in our forward-looking statements and you should not
      place undue reliance on our forward-looking statements. There are a number
      of
      important factors that could cause actual results or events to differ materially
      from the plans, intentions and expectations disclosed in the forward-looking
      statements we make. Investors and others are therefore cautioned that a variety
      of factors, including certain risks, may affect our business and cause actual
      results to differ materially from those set forth in the forward-looking
      statements. These risk factors include, without limitation, (i) a slowdown
      of
      expenditures by communication service providers; (ii) increased competition
      from
      alternative communication systems; (iii) the failure of our existing or
      prospective customers to purchase products as projected; (iv) our inability
      to
      successfully implement cost reduction or containment programs; (v) the potential
      loss of Axtel and Yozan as large customers; (vii) the possibility that Yozan
      will materially delay or cancel future equipment orders; or (viii) our inability
      to cancel certain component orders and/or use or sell any excess inventory
      we
      accumulate as a result of the Yozan contract amendment. The Company is subject
      to the risks and uncertainties described in its filings with the Securities
      and
      Exchange Commission, including its Annual Report on Form 10-K for the year
      ended
      December 31, 2005 and its Form 10-Q for the quarter ended April 2, 2006. You
      should read those factors as being applicable to all related forward-looking
      statements wherever they appear in this press release. We do not assume any
      obligation to update any forward-looking statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notice
      of Delisting or Failure to Satisfy a Continued Listing Rule or Standard;
      Transfer of Listing.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      August
      1, 2006, the Company issued a press release announcing that, on August 1, 2006,
      the Company received a letter from the Nasdaq indicating that, in light of
      the
      appointment of Ms. Julianne M. Biagini to the Company&#8217;s Board of Directors and
      Audit Committee, the Company has regained compliance with the audit committee
      composition requirements for continued listing as set forth in Nasdaq
      Marketplace Rule 4350(d)(2) and that this matter is now closed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      copy of
      that release is being furnished as Exhibit 99.1 to this Current Report on Form
      8-K and is incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(d)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loan
      and
      Security Agreement, dated as of August 1, 2006, by and among, Silicon Valley
      Bank, Airspan Networks, Inc., and Airspan Communications Limited.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
      Release dated August 1, 2006.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font size="2">Dated: August 7, 2006</font></td>
            <td width="1%">&#160;</td>
            <td width="49%">&#160;</td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">AIRSPAN
              NETWORKS,
              INC.</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Arthur
              Levine</font></font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Arthur
              Levine</font></font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vice
                  President, Finance and
                  Controller</font></div>
              </div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      TO EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loan
      and
      Security Agreement, dated as of August 1, 2006, by and among, Silicon Valley
      Bank, Airspan Networks, Inc., and Airspan Communications Limited, including
      exhibits thereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 3pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
      Release dated August 1, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
  </body>
</html>
{"company-data": {"conformed-name": "AIRSPAN NETWORKS INC", "cik": "0001105542", "assigned-sic": "3663", "irs-number": "000000000", "state-of-incorporation": "WA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-31031", "film-number": "061009812"}, "business-address": {"street1": "777 YAMATO ROAD", "street2": "SUITE 105", "city": "BOCA RATON", "state": "FL", "zip": "33431", "phone": "561-893-8670"}, "mail-address": {"street1": "777 YAMATO ROAD", "street2": "SUITE 105", "city": "BOCA RATON", "state": "FL", "zip": "33431"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
Current
      Report pursuant
to
      Section 13 or 15(d) of the
Securities
      Exchange Act of 1934
Date
      of
      report (Date of earliest event reported): August 1, 2006
AIRSPAN
      NETWORKS, INC.
(Exact
      name of registrant as specified in its charter)
Washington
(State
      or
      other jurisdiction of incorporation)
000-31031
75-2743995
(Commission
                  file number)
(I.R.S.
                  Employer Identification No.)
777
                  Yamato Road, Suite 310, Boca Raton, Florida
33431
(Address
                  of principal executive offices)
(Zip
                  code)
(561)
      893-8670
(Registrant's
      telephone number, including area code)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions:
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to
      Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
      communications
      pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications
      pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item
      1.01.
Entry
      into a Material Definitive Agreement
On
      August
      1, 2006, Airspan Networks, Inc. (the "Company") and its wholly owned subsidiary,
      Airspan Communications Limited, entered into a Loan and Security Agreement
      (the
"Loan and Security Agreement") with Silicon Valley Bank ("SVB"), with respect to
      a revolving credit line. For the two year term of the credit line, the Company
      may, subject to certain adjustments, borrow up to the lesser of (i) $10,000,000
      and (ii) 80% of eligible accounts receivable. A certain portion of the credit
      available to the Company under the credit facility may also be utilized to
      secure letters of credit and foreign exchange contracts, if any, issued by
      SVB.
      The Company anticipates being able to commence draws under the credit facility
      later this week once certain administrative funding conditions are
      addressed.
To
      secure
      its obligations under the Loan and Security Agreement, the Company has granted
      SVB a security interest in all of its assets and has established a receivables
      lockbox account at a financial institution affiliated with SVB.
Advances
      under the Loan and Security Agreement bear interest at SVB's prime rate plus a
      percentage ranging from 0.25% to 1.5%, depending on certain financial and
      collateral tests. The Company has also agreed to pay SVB (i) a commitment fee
      of
      $90,000; (ii) an unused facility fee in the amount of 0.375% per year; (iii)
      1%
      per year on the face amount of any issued letter of credit; and (iv) an early
      termination fee of 1% or 0.5% of the principal amount of the credit line if
      the
      facility is terminated by the Company within the first or second year,
      respectively. SVB has retained the right, to, upon limited notice, make
      reasonable adjustments to the definition of eligible receivables. SVB has also
      reserved its right to modify the rate (the "Advance Rate") at which advances are
      made against eligible receivables if the Bank determines, after an audit, that
      there are events, contingencies or risks which adversely affect the Company's
      assets .
Pursuant
      to the Loan and Security Agreement, the Company must maintain a certain tangible
      net worth and liquidity coverage. The Company's tangible net worth (which is a
      measure of total assets minus total liabilities minus any amounts attributable
      to goodwill, intangible items and obligations owing to the Company from its
      officers and other affiliates) must be at least the sum of $27,000,000 plus
      50%
      of quarterly net income, plus 50% of proceeds of any sale of stock by the
      Company, plus 50% of any subordinated debt incurred by the Company. The Company
      must also maintain a liquidity coverage ratio of at least 1.5:1 or 1.75:1,
      which
      threshold varies from month to month. The liquidity coverage ratio is the ratio
      of (A) the sum of unrestricted cash and cash equivalents maintained at SVB,
      plus
      50% of unrestricted cash and cash equivalents in the United Kingdom over which
      SVB has a fixed or floating charge, plus 80% of eligible accounts, minus the
      funded debt (which is the debt that the Company owes to SVB and certain other
      creditors) to (B) the funded debt.
The
      Loan
      and Security Agreement provides that, with the exception of certain permitted
      indebtedness and liens, the Company may not incur additional indebtedness or
      liens. Permitted indebtedness is defined to include unsecured trade debt and
      currency hedges incurred in the ordinary course business, subordinated debt
      incurred on terms acceptable to SVB, and capitalized lease and purchase money
      indebtedness not exceeding $1,000,000 in any fiscal year. Permitted Liens are
      defined to include, among other things, certain liens for taxes or assessments,
      purchase money liens on property not exceeding $1,000,000, non-exclusive
      licenses of intellectual property incurred in the ordinary course of business,
      and certain liens incurred in the ordinary course of business. The Loan and
      Security Agreement further provides that the Company may not convey, sell,
      transfer or otherwise dispose of property except for inventory in the ordinary
      course of business and other similar dispositions. In addition, the Loan and
      Security Agreement limits the Company's right to enter into a merger or
      acquisition, or make investments in other entities.
Although
      the Company believes the credit facility will increase the Company's financial
      resources and financial flexibility, the Company's use of the credit facility
      does present certain risks.
The
      Company's ability to borrow under the credit facility is a function of, among
      other things, the Company's base of eligible accounts receivable and the Advance
      Rate. If the amount or quality of the Company's accounts receivable deteriorates
      or the Advance Rate is adjusted downward
,
the
      Company's ability to borrow under the credit facility will be directly,
      negatively affected. If there is a downward adjustment in the borrowing base
      at
      a time when the Company is unable to, within three business days, repay SVB
      the
      amount by which the borrowing base has been decreased, the Company will likely
      be in default under the Loan Agreement. In addition, as discussed above, the
      credit facility requires the Company to satisfy certain financial covenants.
      As
      a result, the Company cannot provide any assurances that it will be able to
      borrow under the Loan and Security Agreement at a time when it most needs money
      to fund working capital or other needs. As noted above, the credit facility
      also
      contains various provisions that restrict the Company's use of cash and
      operating flexibility. These provisions could have important consequences for
      the Company, including (i) causing the Company to use a portion of its cash
      flow
      from operations for debt repayment and/or service rather than other perceived
      needs, (ii) precluding the Company from incurring additional debt financing
      for
      future working capital or capital expenditures and (iii) impacting the Company's
      ability to take advantage of significant, perceived business opportunities,
      such
      as acquisition opportunities or to react to market conditions. The Company's
      failure to meet financial and other covenants could give rise to a default
      under
      the Loan and Security Agreement. In the event of an uncured default, the Loan
      Agreement provides that all amounts owed to SVB are immediately due and payable
      and that SVB has the right to enforce it security interest in the Company's
      assets.
This
      Form
      8-K contains forward-looking statements within the meaning of Section 27A of
      the
      Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
      All statements, other than statements of historical facts, including statements
      regarding our strategy, future operations, financial position, future revenues,
      projected costs, prospects, plans and objectives of management, may be deemed
      to
      be forward-looking statements. The words "anticipates," "believes," "estimates,"
"expects," "intends," "may," "plans," "projects," "will," "would" and similar
      expressions or negative variations thereof are intended to identify
      forward-looking statements, although not all forward-looking statements contain
      these identifying words. We may not actually achieve the plans, intentions
      or
      expectations disclosed in our forward-looking statements and you should not
      place undue reliance on our forward-looking statements. There are a number
      of
      important factors that could cause actual results or events to differ materially
      from the plans, intentions and expectations disclosed in the forward-looking
      statements we make. Investors and others are therefore cautioned that a variety
      of factors, including certain risks, may affect our business and cause actual
      results to differ materially from those set forth in the forward-looking
      statements. These risk factors include, without limitation, (i) a slowdown
      of
      expenditures by communication service providers; (ii) increased competition
      from
      alternative communication systems; (iii) the failure of our existing or
      prospective customers to purchase products as projected; (iv) our inability
      to
      successfully implement cost reduction or containment programs; (v) the potential
      loss of Axtel and Yozan as large customers; (vii) the possibility that Yozan
      will materially delay or cancel future equipment orders; or (viii) our inability
      to cancel certain component orders and/or use or sell any excess inventory
      we
      accumulate as a result of the Yozan contract amendment. The Company is subject
      to the risks and uncertainties described in its filings with the Securities
      and
      Exchange Commission, including its Annual Report on Form 10-K for the year
      ended
      December 31, 2005 and its Form 10-Q for the quarter ended April 2, 2006. You
      should read those factors as being applicable to all related forward-looking
      statements wherever they appear in this press release. We do not assume any
      obligation to update any forward-looking statements.
Item
      3.01
Notice
      of Delisting or Failure to Satisfy a Continued Listing Rule or Standard;
      Transfer of Listing.
On
      August
      1, 2006, the Company issued a press release announcing that, on August 1, 2006,
      the Company received a letter from the Nasdaq indicating that, in light of
      the
      appointment of Ms. Julianne M. Biagini to the Company's Board of Directors and
      Audit Committee, the Company has regained compliance with the audit committee
      composition requirements for continued listing as set forth in Nasdaq
      Marketplace Rule 4350(d)(2) and that this matter is now closed.
A
      copy of
      that release is being furnished as Exhibit 99.1 to this Current Report on Form
      8-K and is incorporated herein by reference.
Item
      9.01.
Exhibits
(d)
Exhibits
10.1
Loan
      and
      Security Agreement, dated as of August 1, 2006, by and among, Silicon Valley
      Bank, Airspan Networks, Inc., and Airspan Communications Limited.
99.1
Press
      Release dated August 1, 2006.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
Dated: August 7, 2006
AIRSPAN
              NETWORKS,
              INC.
By:
/s/
Arthur
              Levine
Arthur
              Levine
Vice
                  President, Finance and
                  Controller
INDEX
      TO EXHIBITS
10.1
Loan
      and
      Security Agreement, dated as of August 1, 2006, by and among, Silicon Valley
      Bank, Airspan Networks, Inc., and Airspan Communications Limited, including
      exhibits thereto.
99.1
Press
      Release dated August 1, 2006.