Korea Telecom Selects ECI Telecom as Sole Supplier of Edge Routers for Metro Ethernet Network; Carrier Uses ECI's Solutions to Provide Business Customers with Very High Speed Connectivity and Advanced Services

Business Wire, July 31, 2006

PETAH TIKVA, Israel -- ECI Telecom (NASDAQ:ECIL) announced today that KT Corporation (formerly Korea Telecom), Korea's leading telephone and Internet service provider, is deploying ECI's service edge routers on its metro Ethernet network. The routers are provided by ECI's Data Networking Division, formerly Laurel Networks. ECI plans to install additional ST(TM)200 routers in Q3 2006.

KT will now be able to offer its enterprise customers up to 1 Gigabit per second Ethernet connectivity and advanced services, creating new revenue generating opportunities and increasing KT's Average Revenue per User (ARPU). The deployment will gradually replace older switches, allowing KT to create highly efficient managed networks.

For the metro Ethernet network (KORNET) bid process, KT developed a competitive benchmark test that included thorough testing of IP routing, forwarding performance, quality of service, security and denial of service prevention. KT chose ECI after the ST200 Service Edge Router won its extensive benchmark test.

"We have chosen ECI as a consistent supplier, having recognized the outstanding stability and versatility of these routers and the fact that they allow us to upgrade our network to high capacity in the most cost-effective way," said Lim, Tae-Sung, Director of Internet Planning Division at KT. "Having used these service edge routers since 2003, we are very familiar with their advanced features and high reliability."

ECI Telecom has been an increasingly important supplier of networking equipment in Korea. "As KT is one of the most sophisticated telecom companies in the world, it is a special honor that KT has selected our edge routers for their prestigious KORNET network," said Aviel Tenenbaum, President of ECI Telecom's Asia Pacific Regional Business Unit. "We have been working with KT since the early '90s and are particularly pleased to expand this relationship into data networking applications."

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, 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.