BayanTel Selects ECI Telecom's Next Generation Solution to Deliver IP Services and Deploy 100 Mbps of High-Speed Residential Access in the Philippines; ECI Provides Infrastructure Layer Enabling VoIP and IPTV Service Leadership

Business Wire, Oct 26, 2005

PETAH TIKVA, Israel -- ECI Telecom (NASDAQ: ECIL) today announced that Bayan Telecommunications (BayanTel), one of the first telecommunication companies to deliver residential VoIP in the Philippines, has chosen ECI Telecom's optical solution to upgrade its network to deliver advanced IP-based applications such as IPTV, VoIP, Massive Multiplayer Online Role-Playing Game (MMORPG), video streaming and other bandwidth-demanding triple-play services for residential and business customers.

The new network will deliver high-speed bandwidth of up to 100 Mbps to residential and business subscribers. This will support even the most bandwidth-intensive applications, with ECI's optical solution serving as the infrastructure for the network upgrade. The project includes the deployment of new generation metro fiber optic nodes within a few hundred meters of a subscriber's home, providing secure connectivity.

"Upgrading our network with ECI's solutions will give us the bandwidth capacity to address the very strong demand for DSL services and the growth of applications like gaming that require high bandwidth," said Dave Rogers, BayanTel Senior Consultant for Network Management. "High demand for our DSL services is currently putting a strain on our network. But with this expansion, we expect to be at the forefront of meeting the high bandwidth requirements of our customers going online."

The initial phase of the project will cover the Metro Manila Core and street cabinets and is estimated to be completed by the first quarter of 2006. BayanTel is the first carrier to extend the ability to deliver huge bandwidth capability to the residential areas with its implementation of ECI's optical solution, which provides a very scalable architecture for the provisioning of new services. Previously, these services were only available to high-rise buildings in the business districts of Makati and Ortigas.

This new optical network expansion, part of a 3-year upgrade project, is a continuation of the multi-year relationship between BayanTel and ECI Telecom. Previously, BayanTel had partnered with ECI to expand the National Digital Transmission Network (NDTN) to a 10Gbps network. NDTN is majority-owned by BayanTel.

"Existing broadband customers are beginning to outgrow the bandwidth they used to be accustomed to. The broadband connection has changed the way they used the Internet and customer expectations for speed and reliability have increased tremendously," said Joevel Rivera, BayanTel Vice President for Product Development and Management. "This is the reason that we need to continually upgrade the standards of our service. The deployment of this new ECI infrastructure aims to support this commitment to our customers. The new network will ensure that we have sufficient capacity to support customer requirements not only today but for many years to come. We expect that in the next 3 years, broadband penetration will be nearly equal to fixed wire penetration in highly urbanized locations. "

"BayanTel demonstrates that it is truly a leader by deploying this advanced network," said Aviel Tenenbaum, President of ECI Telecom's Asia Pacific Regional Business Unit. "We are honored to be their partner in creating this network that brings next generation IP services and high bandwidth to homes and businesses."

About BayanTel

Bayan Telecommunications Inc. (BayanTel) is a telecommunications company offering an extensive range of traditional voice and data as well as next generation Internet, data and VoIP applications. Its existing service areas in Metro Manila and Bicol and local exchange service areas in the Visayas and Mindanao regions combined cover a population of over 25 million. BayanTel is also a leading provider of data and communications services such as domestic and international leased lines; frame relay; dial up, prepaid and DSL broadband Internet; and managed services like IP VPN.

For more information, please visit www.bayantel.com.ph

About ECI Telecom

ECI provides advanced telecommunications solutions to leading carriers and service providers worldwide. By translating a deep understanding of their needs into innovative, technologically advanced solutions, ECI enables its customers to increase the value of the infrastructure of their networks and reduce operating expenses. ECI's platforms provide carriers and service providers with carrier-grade solutions for easily introducing new revenue-generating services.

ECI provides innovative IP service delivery solutions to the converged telecom networks encompassing Broadband access gateways, Service Edge Routers, Optical transport, Core IP/MPLS routers, NGN VoIP and multimedia applications and services. ECI maintains a global sales, marketing and customer support network, as well as a host of strategic channel relationships worldwide.

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.