Beijing Unicom Deploys ECI Telecom's XDM Optical Platform.

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--Dec. 8, 2003

ECI's Optical Networking Equipment Installed as Milestone Project

to Expand and Optimise Beijing Unicom's Transmission Network

ECI Telecom (NASDAQ:ECIL) today announced that China United Telecommunications Corporation (China Unicom), China's leading telecom network provider, has deployed its XDM(R) MultiService Provisioning Platform (MSPP) within its Beijing Branch. As part of a wider network expansion project, ECI's XDM platforms have been installed and are running live traffic throughout the local networks of the Beijing Branch and surrounding suburbs. Further network development is expected to continue throughout 2004 and beyond.

"Rapid growth in demand for cellular services has provided Beijing Unicom with a unique opportunity to expand its network capability, extend its services portfolio and increase its revenues and customer base," commented Ido Gur, VP sales and marketing, ECI's Optical Networks Division. "This is the first time the XDM has been deployed within China Unicom's Beijing Branch and we are delighted to provide it with a state-of-the-art network solution that will enable it to meet the service requirements of its customers now and into the future. ECI Telecom's XDM equipment provides Beijing Unicom with a field-proven, mature solution that is both flexible and cost-effective, enabling it to generate new revenues now and remain ahead of the competition."

ECI's XDM platforms have been installed within the local network of China Unicom's Beijing Branch to build and extend the downtown and suburb rings in the access and consolidation layers. The enhanced network infrastructure will enable the Beijing Branch to maintain a highly reliable, flexible and cost-effective transmission network for the delivery of next generation services to its customer base. The XDM MSPP converges intelligent optical networking capabilities with advanced data functionality including ATM and Ethernet Layer 2 over SDH/SONET, CWDM and DWDM. Further discussions between ECI and Beijing Unicom are currently underway regarding the development of pure optical metro networks for the future.

China Unicom was founded in 1994 and now has more than 300 divisions over 31 provinces, municipalities and autonomous regions. It is one of the key 44 state-owned corporations of China and the only domestic organisation listed on the Shanghai, Hong Kong and New York stock exchanges. With nearly 1,000 employees in the Beijing Branch alone, China Unicom provides CDMA and GSM cellular communications for more than two million customers. In addition, the company provides international and domestic long distance telephone services, data communications such as Internet and IP telephony, radio paging services and other value-added services including lease line, VPDN, ATM, FR and video teleconferencing.

"ECI has been working closely with China Unicom for several years now and has installed numerous XDMs within the country's major cellular networks," stated Motti Harkabi, general manager of ECI's Optical Networks Division joint venture company HETC. "China Unicom's Beijing Branch is of major strategic importance to our business in China representing a significant penetration of the China capital public telecom network. We are delighted the company has recognised the versatile qualities of the XDM platform as the best solution for this project. Customers around the world are now selecting the XDM for its revolutionary single architecture approach to help them plan for future growth through the modular expansion it offers."

About China United Telecommunications Corporation

Founded in 1994, China Unicom is the only large-scale, state-owned telecommunications operator approved by the State Council in China. China Unicom offers basic and value-added telecommunications services including wireless mobile telecommunications, data communications, international and domestic long distance calls, local calls, wireless paging, satellite communications, value-added telecommunications services and other associated businesses.

About ECI Telecom

ECI 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 specialises 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 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, commercialisation and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.