Celtro Delivers Cellular Backhaul Switching Solutions to the U.S. Mobile Market; Celtro's Field-Proven DynaMate Products Address 3G and 3.5G Bandwidth and Service Delivery Challenges.

PETAH TIKVA, Israel -- Celtro, a pioneer and leading global supplier of cellular backhaul switching solutions, today announced expansion into the U.S. mobile market. Celtro's expansion is driven by the growing challenges mobile operators face with bandwidth and service delivery in the cellular backhaul and transmission infrastructure. These bandwidth and service delivery issues are fueled by the rollout of WCDMA, future migration to HSDPA radio technologies, and new broadband mobile services.

Celtro's DynaMate cellular backhaul switching solutions are based on Celtro's unique Cellular Traffic Switching technology and integration with TDM/ATM/IP switching. The cellular backhaul switching solutions multiply the effective network capacity and maximize network efficiency and flexibility. For operators, the resulting benefits are increased revenues, improved customer satisfaction, and savings on network expenses.

Since 2004, DynaMate products have been deployed by 10 leading mobile operators serving more than 100 million subscribers in Europe, Africa and Latin America. The field-proven 2G/3G converged backhaul solutions have been deployed in rapidly expanding networks to support a growing subscriber base, new mobile data services (i.e. GPRS, EDGE) and rollout of new 3G technology.

GeoResults Inc., an Atlanta-based telecom database marketing and consulting firm estimates that approximately 24% of cellular carrier revenue is spent on transport costs, and GeoResults equates this to a $2 billion annual expenditure on cell site backhaul for U.S. mobile operators. GeoResults also projects that mobile operators will spend an estimated $31 billion on cellular backhaul over the next five years.

"U.S. mobile operators will need to address the cellular backhaul network or they will not be able to realize the additional revenue they're expecting from subscriber growth fueled by the delivery of new broadband services," said Ron Zor, chairman and chief executive officer of Celtro. "Celtro's converged cellular backhaul switching solutions maximize capacity in the backhaul while enabling the rollout of new services. The result for operators is significant savings in operating costs combined with new revenue-generating opportunities."

The Celtro management team includes seasoned technologists and business leaders with many years of successful experience in the wireless transmission industry and with mobile operators. Celtro targets the mobile market through its direct sales force and global network of agents and distributors, as well as joint sales opportunities with leading global mobile and transmission vendors.

About Celtro

Celtro provides innovative cellular backhaul switching solutions for mobile operators worldwide that improve service delivery and increase network efficiency. The resulting benefits to the operators are increased revenues and improved customer satisfaction, as well as reduced capital and operational expenses. Celtro was established in 2001 as a business unit within ECI Telecom, and in September 2003 was spun-off as an independent, privately owned company and became a member of the ECI Group.