BT Renews ECI Telecom's HDSL Sole Supplier Agreement; New Agreement Includes X.21 Data Interface Capabilities; Framework Agreement Valued Over US $33 Million.

PETAH TIKVA, Israel--(BUSINESS WIRE)--Feb. 4, 1999--ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) announced today that BT has extended ECI Telecom's CWSS (Copper Wideband Serving Section) sole supplier contract for HDSL stand alone solutions. The new contract additionally includes ECI Telecom's HDSL systems featuring new integrated X.21 and G.703 interface capabilities.

Mr. David Rubner, ECI Telecom's President and CEO said: "This contract further endorses ECI Telecom's position as a leading supplier of copper enhancement solutions in the European market, and emphasizes the confidence of our long term partner, BT, in our solutions and services. We are proud to be maximizing BT's copper networks with tailored solutions that provide voice, fax and data services to BT's commercial customers."

The framework agreement, valid until the end of 2001, is valued over US$ 33 million. The new agreement follows the receipt of a sole supplier contract for stand-alone HDSL solutions in 1995, whereby thousands of ECI Telecom's HDSL systems were successfully deployed throughout the UK by BT. The new contract will enable BT to continue to provide up to 2Mbit/s voice, fax and data services for leased line applications throughout the UK.

ECI Telecom's new X.21 interface capability enables the supply of n x 64 Kbit/s (n=1-31) services and extends leased line business applications to data services. ECI Telecom's HDSL Access Network transmission system provides 2Mbit/s services over existing unconditioned copper pairs. The system uses the High bit-rate Digital Subscriber Line (HDSL) technique and fully complies with ITU-T HDSL recommendation ETR-152.

ECI Telecom has been a key supplier in providing wide area networking equipment for BT's managed network data services throughout the UK. As a leading supplier of copper enhancement solutions world wide, thousands of ECI Telecom's HDSL systems have been deployed by BT. Additionally, ECI Telecom has supplied multiple contracts of DACS2 pair gain systems to BT and was awarded the BT network 'Product Quality' award for its DACS2 (Digital Access Carrier System) product last year and a recently announced 'Quarterly Supplier' award.

A provider of integrated network solutions, ECI Telecom designs, develops, manufactures and markets digital telecommunications and data transmission systems, enabling network operators to deliver cost-effective services. ECI Telecom's systems provide capacity expansion, flexibility and management functions to more effectively utilize existing networks for voice, data, wide area and integrated networks.

This press release and additional information about the Company, is now available on ECI TELECOM's site on the World Wide Web: http://www.ecitele.com.

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Certain statements contained in this release, may contain forward-looking information with respect to plans, projections or future performance of the Company, the occurrence of which involves 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.