ECI Telecom Positioned by Analyst Firm in Leaders Quadrant in Next Generation SDH Equipment; ECI's Optical Networking Revenues Grew 36% Per Annum over the Last 2 Years

Business Wire, May 9, 2006

PETAH TIKVA, Israel -- ECI Telecom (NASDAQ: ECIL) today announced that it has recently been listed in the "Leaders" quadrant in Gartner's "Next-Generation Synchronous Digital Hierarchy (SDH) Equipment Magic Quadrant for 2006(1)". Gartner, Inc. is a leading provider of research and analysis on the global information technology industry, and its Magic Quadrant report is a graphical representation of a marketplace at and for a specific time period. Gartner's Magic Quadrant evaluated equipment vendors based on completeness of vision as well as their ability to execute.

According to Gartner, companies that are positioned in the "leaders" quadrant are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market.

"We feel that being listed by Gartner in the leaders quadrant is a rewarding confirmation of our commitment to the Next-Generation SDH and optical networking market. This results from our focused R&D and marketing efforts and has been reflected in our 36% compound annual revenue growth in optical networking over the last two years," said Eyal Shaked, Executive Vice President and General Manager of ECI Telecom's Optical Networking Division. "As a global leader, we are focused on providing innovative solutions that help service providers manage their networks more efficiently, leverage their investment in Next-Generation SDH and introduce new services that generate higher revenues."

In today's telecommunications market, the ability to control costs and deliver superior service to customers is essential for the success of metro service providers. It is also critical for providers that their networks have the ability to keep up with the growing demand for data and bandwidth. ECI Telecom offers optical solutions that converge pure optics, next-generation SDH/SONET, and Gigabit Ethernet in a single platform. Its highly scalable products, such as the XDM(R) product line, support both data and transport technologies, offer unprecedented capacity and cost-savings and help carriers move smoothly into future-oriented markets and services.

About the Gartner Magic Quadrant

The Magic Quadrant is copyrighted March 10, 2006 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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 global sales, marketing and customer support networks, 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.

(1) Gartner Research "Magic Quadrant for Next-Generation SDH Equipment, 2006" by Peter Kjeldsen and Todd Hanson, March 10, 2006.