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A new vertical handoff decision algorithm is proposed to maximize the system benefit in heterogeneous wireless networks which comprise cellular networks and wireless local area networks (WLANs). Firstly the block probability, the drop probability and the number of users in the heterogeneous networks are calculated in the channel-guard call admission method, and a function of the system benefit which is based on the new call arrival rate and the handoff call arrival rate is proposed. Then the optimal radius of WLAN is obtained by using simulation annealing (SA) method to maximize the benefit. All the nodes should handoff from cellular network to WLAN if they enter WLAN's scope and handoff from WLAN to cellular network if they leave the scope. Finally, the algorithm in different new call arrival rates and handoff call arrival rates is analyzed and results show that it can achieve good effects.