ECI TELECOM chosen by BT as sole source for HDSL transmissions systems; Framework Agreement is Valued at Approximately $18 million

Business Wire, Jan 22, 1996

PETAH TIKVA, Israel--(BUSINESS WIRE)--January 22, 1995--ECI TELECOM LTD. (NASDAQ/NM Symbol: ECILF) announced today that British Telecommunications Plc. (NYSE: BTY) ( "BT") has named the Company its sole supplier of HDSL (High bit rate Digital Subscriber Line) transmission systems and awarded it a framework agreement valued by BT at 12 million (approximately $18 million). The award followed a competitive bid and lengthy technical evaluation.

ECI TELECOM will supply BT with the ExLine2 access product which extends the range of 2 Mbit/s transmission services over existing unconditioned twisted copper-pair wiring without the need for repeaters. ExLine2 extends the range of standard 2 Mbit/s transmission networks by up to three times the normal distance and is used for connecting G.703 networks such as telephone exchanges, ISDN-PA (primary access), PABXs, computer and data communications, local area networks (LANS), video conferencing, and cellular base stations. By deploying the ExLine2, BT will be able to immediately supply their customers with 2 Mbit/s transmission networks without having to install fiber optic cable.

ECI TELECOM is among the first companies to deploy HDSL in Europe. HDSL is a coding scheme which extends the range of standard transmission networks from 1-1.5 kms to up to 5 kms by eliminating the need for repeaters. The ExLine2 operates on standard, unconditioned copper phone lines. The remote unit can be powered locally or from the central office. Both units are available in a compact desk-top enclosure or in a standard ETSI 19" subrack. In addition, the ExLine2 features a powerful, user-friendly network management system for locating faults and is fully compliant with the ETSI RTR/TM - 3038/36 standard for HDSL. By reducing the amount of equipment used in the network, ExLine2 allows customers to significantly reduce the cost of deployment as well as the ongoing costs of maintenance.

Commenting on the award, Uri Kashti, Vice President and General Manager of ECI's Access Network Business Unit, said, "We are very proud of being selected by BT as its sole supplier of HDSL equipment. This new order is the second award given to ECI TELECOM by BT for HDSL and demonstrates BT's confidence in our products."

A provider of integrated network solutions, ECI TELECOM designs, develops, manufactures and markets digital telecommunications and data transmission systems, enabling network operators to deliver cost-effective services. ECI TELECOM's systems provide capacity expansion, flexibility and management functions to better utilize existing and new telecommunications, wide area and integrated networks.

CONTACT: Lippert/Heilshorn & Associates, Inc.

Bharti Malkani/Jean O'Dea, 212-838-3777

or

ECI Telecom Ltd.

Mannie Olswang, 972-3-9266503