BT 21st Century Network's First Customer Connections Use ECI Telecom's Fibre to the Premises Solution; First residential users successfully connected for VoIP traffic.

BASINGSTOKE, U.K. -- ECI Telecom (NASDAQ: ECIL) announced that its Fibre to the Premises (FTTP) equipment is now carrying live traffic in BT's 21st Century Network (21CN) trials. The first residential users have been successfully connected for High Speed Data and Packetised Voice.

ECI provided the FTTP technology and equipment for the trial. The ECI solution was strategically selected as it cost-effectively integrates voice and data services from a single, highly flexible platform. The Hi-FOCuS4(TM) broadband platform, which is used at both the customer premises and at the exchange, supports multiple subscriber interfaces from the same platform, in any combination and without restriction, allowing BT flexibility to migrate services from their present network platforms to 21CN.

BT's 21CN initiative was launched only a few months ago with the goal to be one of the first to lead the marketplace with an advanced network infrastructure for the delivery of new broadband services to residential and business customers. "The last few months have been very exciting for ECI and BT as we have work closely together to have the first homes connected, on time, to plan and ahead of the market," said Ben Thomas, Managing Director, ECI (UK).

Ian Lawrence, head of access bearer and technology, for BT's 21CN programme, said: "The 21CN programme is creating a truly converged IP network and the FTTP trials will help inform our strategic thinking on how access fibre might play a part in the 21CN access network. We set demanding timescales for the trials and ECI have responded with real engagement, showing flexibility to adapt as the requirements of the trial evolved and the scope was finalised."

About ECI Telecom

ECI Telecom 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 easily introduce new revenue-generating services. ECI has pioneered key technologies including voice compression, SDH, DSL, and has enabled the establishment of global networks. ECI specializes in metro optical networks, broadband access, bandwidth management and carrier-class VoIP solutions.

Certain statements contained in this release may contain forward-looking information with respect to plans, projections, or future performance (including guidance on future financial performance) of the Company. By their nature, forward-looking statements involve certain risks and uncertainties including, but not limited to, actual revenues earned from announced contracts, the possibility of future net losses, rapid technological change in our markets, competitive factors, price erosion in the market for certain of our products, dependence on large customers, fluctuations in our quarterly and annual results, potential inability to raise additional funds, if needed, on favorable terms, risks associated with international sales, risks relating to our intellectual property, substantial outstanding line of credit and related loan to one of our customers and its affiliate, unexpected tax demands, currency fluctuations, potentially disruptive acquisitions, dependence on limited suppliers and subcontractors, as well as risks related to operations in Israel, and other risks detailed in the Company's annual report on Form 20-F for the year ended December 31, 2003 and other filings with the Securities and Exchange Commission.