Tiscali International Network Chooses ECI Telecom's Enstara Platform for Pan-European IP/MPLS Network Upgrade; First Major Customer Since ECI-Chiaro Networks Partnership Announcement

Business Wire, April 7, 2005

MILAN, Italy & PETAH TIKVA, Israel & RICHARDSON, Texas -- Tiscali International Network, the carrier arm of Tiscali S.p.A., has chosen the innovative next-generation Enstara(R) platform from ECI Telecom Ltd. (NASDAQ:ECIL) to upgrade its international IP/MPLS backbone. The announcement was made today by ECI, a global provider of advanced telecommunications solutions, and their partner, Chiaro Networks, the developer of the Enstara infrastructure-class IP/MPLS platform.

Tiscali International Network's IP/MPLS infrastructure is one of the most extensive carrier networks, stretching from Czech Republic to the West Coast of the United States, from Norway to Spain and Greece. Its global network consists of approximately 120 locations in more than 15 European countries and in the United States. The Enstara(R) platform is part of a network capacity upgrade driven by broadband traffic growth.

"To cope with continuing IP traffic growth, Tiscali International Network is renewing its commitment as a market innovator by selecting the Enstara, a truly innovative next-generation IP/MPLS platform," commented Tiscali International Network's CEO Paolo Susnik. "We have chosen the Enstara platform because of its excellent quality and cost proposition and we are confident it will prove to be a high-performing and scalable solution."

The Enstara IP/MPLS router completed extensive laboratory and production-network validation including interoperability of routing protocols in a multi-vendor network. Based on its industry-leading high availability, proven multi-chassis architecture and ability to scale to support new services and network growth, the Enstara platform was selected.

"Tiscali International's selection of the Enstara platform is a leading indicator of the value providers are now placing on five-nines availability, scalability and enhanced L2/L3 VPN functionality," said Ken Lewis, Chiaro's Chief Executive Officer.

This win closely follows the strategic partnership agreement announced in December, 2004, between ECI Telecom and Chiaro. Under this agreement, ECI exclusively distributes Chiaro's Enstara IP/MPLS platform worldwide and also took part in Chiaro's funding. "That a major pan-European carrier like Tiscali International Network has chosen the Enstara platform is a signal that ECI-Chiaro's new partnership is already paying dividends," said principal analyst Jennifer Liscom of the Gartner Group.

"This win demonstrates ECI's strategy to bring IP solutions to meet carriers evolving needs for advanced IP networks," said Doron Inbar, President and CEO of ECI Telecom.

About Tiscali International Network

Tiscali International Network is a subsidiary of Tiscali S.p.A. (Nuovo Mercato, Milan: TIS, Nouveau Marche, Paris: 005773), delivering leading IP Transit, Remote Peering, clear channel and Voice services to the wholesale market of Carriers and xSPs in Europe and the USA. Tiscali International Network's state-of-the-art backbone is based on 15.000 km of long distance fibre and covers 15 countries in Europe plus the USA. Tiscali tier-1 IP/MPLS network, running over our 10 Gbps DWDM network in Europe, is one of the most extended networks and largest European AS number. Tiscali International Network employs 85 people and has been consistently achieving its financial objectives for the last four years, demonstrating the value of its unique business model in a troubled industry like the wholesale carriers arena. Tiscali's AS3257 was twice ranked best performing Autonomous System in Europe. News and information are available at www.tiscali.net.

About ECI Telecom

ECI Telecom (NASDAQ:ECIL) provides advanced telecommunications solutions to leading carriers and service providers, worldwide. By translating a deep understanding of its customers' needs into innovative, technologically excellent solutions, ECI enables its customers to increase the value of their networks and reduce operating expenses. ECI's platforms enable carriers and service providers to introduce new revenue-generating services easily. ECI has pioneered key technologies including voice compression, SONET/SDH and DSL and has enabled the establishment of global networks. ECI specializes in metro optical networks, broadband access, bandwidth management and carrier-class VoIP solutions.

About Chiaro Networks

Chiaro Networks is the provider of the Enstara(R) router, the industry's first highly available infrastructure-class IP/MPLS platform. Chiaro has recently signed an exclusive worldwide distribution agreement with ECI Telecom (NASDAQ: ECIL), a global provider of advanced telecommunications solutions to leading carriers and service providers. With strong support from the venture capitalist and technology communities, Chiaro has secured funding from backers such as Intel Capital, Siemens Ventures, CenterPoint Ventures, InterWest Partners, Pitango Venture Capital, Rho Management, Sevin Rosen Funds and STAR Ventures. The company also boasts a Technology Advisory Board that comprises business leaders and academics from MIT and Stanford University. For more information on the company, visit www.chiaro.com.