Banverket, Sweden, Chooses ECI Telecom's SDH and DWDM Solutions to Transmit Telephony and Data Services Throughout Sweden.

PETAH TIKVA, Israel--(BUSINESS WIRE)--Nov. 17, 1999--

New $30 Million Framework Agreement Includes the Deployment of

ECI Telecom's Recently Launched Optical Add/drop

Multiplexer Solutions

ECI Telecom Ltd., (NASDAQ/NM symbol: ECIL) and Banverket Telecom, the Telecommunications Division of Banverket - Sweden's National Railway Operator announced today another significant step forward in enhancing the existing SDH Backbone network of Banverket, extending its capability to deliver higher bandwidths and wavelengths directly to carriers throughout Sweden.

Under a new 3 year frame agreement, valued at US $30 million , ECI Telecom will supply Banverket with advanced DWDM optical network solutions including OPTICAL Add/Drop multiplexers capable of supporting more than 32 channels at 10 Gbits/s. In addition ECI Telecom will continue to supply Banverket with advanced SDH equipment and a fully integrated network management system.

ECI Telecom's solutions were selected by Banverket out of many optical network vendors that participated in the extensive bidding process.

First deployments of ECI Telecom's solutions, under the new agreement, will form a DWDM ring that spans over 1700km, stretching across Sweden's 3 major cities; Goteborg, Malmo and Stockholm. ECI Telecom's newly launched Optical Add/Drop Multiplexers (OADM), will make up a significant part of this new network configured in 16 channel rings that are upgradeable to 32 channels.

"We have been working together with ECI Telecom for 5 years now, and once again are happy to announce another significant step forward in building and enhancing our networks to deliver high bandwidth and wavelengths directly to our customers. With the growth of telephony and data traffic and the surging demand for high speed services, ECI Telecom's systems are helping us deliver high quality services quickly and efficiently to our customers. The fully managed networks are easily upgradeable enabling us the flexibility to grow as needed", said Lars Goran Bernland, President of Banverket Telecom.

The new agreement also includes ECI Telecom's (mu)SDM-1, 155 Mbit/s miniature Add/Drop Multiplexers and BroadGate broadband access solutions. These products in addition to standard SDH supplied by ECI Telecom will enable Banverket to deliver a comprehensive data service package from the backbone to the access network and even directly to the subscriber.

ECI Telecom's eNM management systems will centrally manage and monitor the entire network that also includes ECI Telecom's SDM-16, 2.5 Gbit/s Add/Drop Multiplexers and SDM-4, 622 Mbit/s Add/Drop Multiplexers. The contract further includes a comprehensive maintenance package and provides for regular upgrades of Banverket's network .

Hezi Lapid, ECI Telecom's Corporate Vice President and General Manager, Network Systems, said: "We are extremely happy to have again been chosen by Banverket to continue to supply innovative Network systems, solutions, and complete turn key projects. Our newly launched OADMs will form a significant part of this new contract and initial implementation is planned to already be fully operational by Q1 of next year. This is an important milestone for us and we look forward to continuing to play a significant role in the sophisticated telecommunications market in Sweden."

Belonging to ECI Telecom's LumiNet(TM) family of optical networking solutions, ECI Telecom's newly launched OADM uniquely delivers a fully managed, flexible, protected and cost effective optical networking solution that improves quality of service, enabling operators to deliver new wavelength services such as STM-4/OC-12, STM-16/OC48, STM-64/OC-192 and Gigabit Ethernet.

About ECI Telecom:

ECI Telecom Ltd. is a provider of integrated network solutions for digital communications and data transmission systems. The Company designs, manufactures, markets and supports end-to-end digital telecommunications for today's new services and converging networks. The Company's products create bandwidth, maximize revenues for network operators, expand capacity, improve performance and enable new revenue-producing services. In doing so, they enhance the capabilities of existing networks to support voice, data, video and multimedia services. ECI Telecom's equipment supports traffic in more than 500 service networks in over 145 countries.

This press release and additional information about the Company are 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. By their nature, forward-looking statements involve certain risks and uncertainties including, 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.