Telemach to Deploy ECI Telecom's Optical Network Solutions Throughout Slovenia; ECI Telecom Receives New $15 Million Contract to Supply DWDM, and SDH Equipment

Business Wire, July 6, 2000

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--July 6, 2000

ECI Telecom Ltd. (NASDAQ/NM symbol: ECIL) announced today a new contract for Optical Networking Solutions with Slovenian National Operator and Service Provider, Telemach. The new contract further positions ECI Telecom as a leading supplier of Optical Networking Solutions.

ECI Telecom's Optical Solutions will be deployed to form an optical backbone broadband network. This network will enable the utilization of the unified transport layer (IP) and IP over fiber network infrastructure and will facilitate the delivery of a broad range of quality services including voice, data, Internet and Video. ECI Telecom's sophisticated eNM management solutions will centrally monitor and manage the entire network.

"As Telemach is becoming an International operator and service provider, we are expanding our networks to accommodate the rapidly growing demands for advanced solutions for traffic over our network. Telemach follows its vision in building a new broadband network environment to offer subscribers high quality telecommunication services. ECI Telecom's Optical Networking solutions are enabling us to accommodate these demands", says Telemach's Executive Vice-President of the Board of Directors, Ms. Violeta Bulc.

Commenting on the contract, Levy Zelkind, President of ECI Telecom's Eastern European Regional Business Unit said: "We are extremely pleased to be part of this strategic project, which signifies a further step in the deployment of our next generation optical products within Central Eastern Europe."

Telemach has chosen ECI Telecom's DWDM and video over SDH solution for building robust optical backbone and universal distribution system which allows flawless and cost-effective transmission of data, video and audio information throughout the country. Suitable for all types of broadband transmission applications, ECI Telecom's LumiNet(TM) and Optical Networking solutions are cost effective, future proof, upgradable and flexible solutions.

"ECI Telecom's strategic decision to focus on the delivery of next generation optical networking solutions has resulted in overwhelming demand for our integrated DWDM and SDH solutions and Optical Add/Drop Multiplexers", explains Eran Dariel, ECI Telecom's Corporate Vice Presiden and General Manager of the Network Systems Business Unit. "We are most excited to be contributing to the development of this market" he continued.

ECI Telecom expects that under this agreement it will complete delivery of equipment to Telemach by the end of the year 2000.

About Telemach

Telemach is an emerging Operator and Service Provider in Slovenia. It began as a Cable TV Operator, and is now expanding its' services and infrastructure. Deregulation of telephony services in Slovenia is scheduled to take place early next year. Telemach's position will be that of an alternative operator to the incumbent - Telekom Slovenje. Their services can be split into two basic groups: cable television with radio or the Internet.

About ECI Telecom

ECI Telecom Ltd is a provider of integrated network solutions for digital communications and data transmission systems. The Company designs, develops, manufactures, markets and supports end-to-end digital telecommunications solutions for today's new services and converging networks. The Company's products create bandwidth, maximize revenues for networking operators, expand capacity, improve performance and enable new revenue-producing services. In doing so, they enhance the capablities of existing networks to support voice, data, video and multimedia services. ECI Telecom's equipment supports traffic in more than 500 service networks in over 145 countries.

This press release and additional information about the Company, are now available on ECI TELECOM's site on the World Wide Web: http://www.ecitele.com.

If you would like to receive future news releases electronically, please forwards your email address to: corporate.marketing@ecitele.com.

Certain statements contained in this release may contain forward-looking information with respect to plans, projections or future performance of the Company. By their nature, forward-looking statements involve certain risks and uncertainties including, but not limited to, product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.