Telecom Italia Deploys ECI Telecom for Network Expansion in Rural and Saturated Areas

Business Wire, Oct 1, 2007

-Hi-FOCuS[TM] MiniCAB solution selected for outside plant DSL deployment-

PETAH TIKVA, Israel -- ECI Telecom, a global provider of networking infrastructure equipment, announced today that its Broadband Access solution has been deployed by Telecom Italia Group (NYSE:TI) to expand its outside plant broadband network, to cost-effectively deliver DSL (Digital Subscriber Line) services and reach new business and residential subscribers.

ECI's Hi-FOCuS[TM] MiniCAB outdoor broadband solution provides Telecom Italia with the ability to provision services rapidly and remotely, while the platform is completely integrated into Telecom Italia's domestic network. It enables Telecom Italia to deploy broadband at any location, including new urban areas, saturated regions and rural areas, thus expanding considerably the DSL service coverage in Italy. ECI's solution enables Telecom Italia to provide their subscribers with the broadband bandwidth necessary to support next-generation triple play services such as IPTV.

Because the MiniCAB is a self-enclosed, ruggedized unit, it can be deployed even where there is no street cabinet or previous installation, or when the street cabinet is full, and even under harsh environmental conditions. The platform can be remotely powered using copper lines, allowing for service even in those areas where external power is not available.

"In our continuous efforts to expand the delivery of advanced broadband services to our customers, we found ECI's MiniCAB to be the most innovative solution for hard-to-serve areas," said Stefano Pileri, CTO, Telecom Italia. "ECI and the MiniCAB were the first vendor and equipment to be successfully integrated into Telecom Italia's innovative next-generation operation & support system (OSS) management network."

"Being selected by Telecom Italia, one of the technology leaders among European carriers, as its DSL outside plant supplier is a major milestone for ECI," said Rafi Maor, President and CEO of ECI Telecom. "This win reiterates the superiority and versatility of our solutions and underscores our success in partnering with large, Tier-1 operators to efficiently expand their networks."

About Telecom Italia

Telecom Italia today serves around 24 million fixed-line customers and 34.3 million mobile customers in Italy, over 10.5 million broadband connections in Europe, and 27.5 million mobile customers in Brazil. Telecom Italia is Italy's Information and Communication Technology leader and one of Europe's most dependable blue-chip companies. The Group is striving to consolidate and strengthen its position through a strategy built upon customer service, technological excellence, innovation and profitability. Operations are closely focused on fixed-line, wireless telecommunications and on growth businesses such as the Internet.

About ECI Telecom

ECI Telecom delivers innovative communications platforms to carriers and service providers worldwide. ECI provides efficient platforms and solutions that enable customers to rapidly deploy cost-effective, revenue-generating services.

Founded in 1961, Israel-based ECI has consistently delivered customer-focused networking solutions to the world's largest carriers. The Company is also a market leader in many emerging markets. ECI provides scalable broadband access, transport and data networking infrastructure that provides the foundation for the communications of tomorrow, including next-generation voice, IPTV, mobility and other business solutions. For more information, please visit www.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 as well as other risks.