ECI Telecom and Megahertz-NKO, Inc. - A Division of Clariti Telecommunications International - Signs Memorandum of Understanding for IP Telephony Cooperative Agreement

Business Wire, June 9, 1999

PETAH TIKVA, Israel & PHILADELPHIA--(BUSINESS WIRE)--June 9, 1999--

ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) and MegaHertz-NKO, a division of Clariti Telecommunications International (OTC symbol: CLRI), announced today the signing of an IP Telephony Marketing Cooperation Memorandum of Understanding Agreement to present MegaHertz-NKO's network interconnectivity, operational management and support services and ECI Telecom's ITX IP Telephony network solutions to potential customers.

Under the agreement, ECI Telecom will co-market MegaHertz- NKO's network design and monitoring services, system and database support, as well as inter-exchange and clearing house services.

The ECI Telecom ITX IP Telephony product line includes IP Telephony Gateways, Gatekeepers, as well as management, client and back-office service applications. As the world's leading Toll-Quality compression equipment manufacturer, ECI Telecom is experienced in delivering reliable, high-quality, high capacity, carrier class systems with superior voice and fax features.

MegaHertz-NKO operates and maintains NKOnet Global Backbone, a world-wide network using ECI Telecom's ITX solutions. NKOnet provides global connectivity for its business partners with a complete suite of back-office facilities to provide end- to-end network management and administrative services.

Mr. Israel Zohar, Associate Vice President and General Manager of ECI Telecom's IP Telephony Business Unit said "We are delighted that MegaHertz-NKO is aligned with our equipment to provide an additional level of service support to ECI Telecom's ITX IP Telephony system customers. ECI Telecom continues to show its leadership in the Internet telephony market by working with companies like MegaHertz-NKO, demonstrating to service providers that voice over IP is a technologically viable, revenue- generating potential that offers both customers and providers a host of new and exciting services and opportunities."

Eric Fixler, CEO of MegaHertz-NKO said, "Many potential business partners, who are interested in using ECI Telecom's ITX technology to offer IP Telephony solutions in their respective countries and world regions, have approached MegaHertz-NKO. Our services and support offerings enable network partners to connect to the NKOnet and take advantage of our expertise in managing, provisioning and controlling a global IP Telephony network.

Mr. Fixler added, "The MegaHertz-NKO network supports a wide range of services, including VoiceJet, FaxJet, DataJet, pre-paid calling cards, and Internet and Hosting services. It's this integration of services within a single platform that makes us unique from all other IP Telephony Service Providers."

Currently providing VoIP services to over 1,000 international customers over its managed bandwidth global backbone, MegaHertz-NKO's systems integrate regional networks into managed IP networks providing customers with global connectivity.

This new cooperative agreement enables MegaHertz-NKO's affiliates worldwide to supplement ECI Telecom's ITX IP Telephony solutions with immediate operational, planning and support services from MegaHertz-NKO.

About Clariti Telecommunications

Clariti Telecommunications International, Ltd., is a diversified international telecommunications company headquartered in Philadelphia. In addition to M-NKO, Clariti has two other divisions- GlobalFirst and Clariti Wireless Messaging. GlobalFirst provides diversified telecommunications services, including domestic and international long-distance, pre-paid mobile phones and calling cards, primarily in the United Kingdom and France. The Clariti Wireless Messaging division is currently developing the ClariCAST(TM) Digital Wireless Voicemail System, a low-cost wireless system that can automatically send voicemail messages to a device the size of a pager using digital audio sound. This patented communications technology uses FM subcarrier frequencies, so it can be quickly and inexpensively installed in any city where FM radio towers exist. Clariti plans to market its wireless voice messaging service worldwide, including rapidly growing wireless telecom markets such as Europe, Latin America and the U.S. More information on Clariti and the ClariCAST(TM) Digital Wireless Voicemail System can be found on the World Wide Web at http://www.clariti.com

About ECI Telecom

A provider of integrated network solutions, ECI Telecom designs, manufactures and markets end-to-end digital telecommunications solutions for today's new services and converging networks. ECI Telecom's advanced solutions create bandwidth, maximize revenues for network operators, expand capacity, improve performance, and enable new revenue producing services. Enhancing the capabilities of existing networks to support voice, data, video and multimedia services, ECI Telecom's equipment is supporting traffic in more than 300 service networks in over 145 countries throughout the world.

Special Note Regarding Forward-Looking Statements: This press release contains certain forward-looking statements, including statements about Clariti's growth prospects, the ability to expand its telecom business and market share at a lower cost, the use of M-NKO's infrastructure, the synergies and advantages of the M-NKO acquisition, that involve risks and uncertainties. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, changes in telecommunications regulations, changes in consumer demand for telecommunications products, the continued growth in the Internet demand and usage, acceptance of Internet Telephony, and various other factors beyond the control of the companies. This includes such factors as described from time to time in the SEC reports filed by Clariti Telecommunications International, Ltd., including the most recently filed Form 10-KSB.