Connex Romania Deploys ECI Telecom's XDM For SDH Network Backbone; ECI's Converged Optical Platforms Installed In Network Connecting Major Urban Centres In Eastern Romania.

Business Editors/High-Tech Writers

PETAH TIKVA, Israel--(BUSINESS WIRE)--Jan. 13, 2004

ECI Telecom (NASDAQ:ECIL) today announced that Connex, a leading GSM operator in Romania, has deployed the XDM(R) MultiService Provisioning Platform (MSPP) for development of a new SDH backbone network in Eastern Romania. XDM platforms are already installed and running live traffic in Bucharest, Brashov, Constanta and other locations in Romania enabling Connex to provide business and residential customers with a wide range of GSM, GPRS, voice, data and internet services.

Partially owned by Vodafone UK and Canadian telco Telesystem International Wireless (TIW), Connex is a pioneer in the European mobile telecommunications market and the telecom market leader in Romania. Launched in 1997, the Connex GSM network was the first of its kind in Romania. Now in its seventh year, the company holds a 50 percent marketshare with subscriber numbers reaching a total of 3 million (October 2003). Connex is continuously extending its services portfolio in order to remain ahead of the competition and selected optical transmission equipment from ECI Telecom to strengthen its foothold in the Romanian market.

Connex's existing network is based on SDH transmission infrastructure which covers 95 percent of the Romanian population and offers roaming in 107 territories through 244 operators. ECI's three-year frame agreement with Connex involved the deployment of ECI's XDM multiservice metro optical platforms across major urban centres in the Eastern part of Romania.

The XDM installation enables Connex to develop its presence in this region, whilst at the same time offering a cost-effective way of connecting multi-service broadband subscribers to the transport backbone by avoiding the traditional need to invest in numerous systems. The XDM MSPP converges intelligent optical networking capabilities with advanced data functionality including ATM and Ethernet Layer 2 over SDH/SONET and DWDM.

"Romania is the second largest telecoms market in Central and Eastern Europe and presents significant potential for new revenue generation," commented Ido Gur, VP sales and marketing, ECI's Optical Networks Division. "We feel privileged to be selected for this optical transmission project, leveraging our past successes with the Vodafone Group."

"With a history of industry firsts, Connex is renowned for being a technical innovator in the Romanian cellular market. Our XDM equipment is ideally suited to the requirements of this sector and we look forward to partnering with Connex on future projects for the further advancement of its GSM network," Gur Continued.

About Connex

Connex leads the mobile communications market in Romania with 3,000,000 customers, as of October 6, 2003. Connex is a trademark of MobiFon S.A., a subsidiary of Telesystem International Wireless Inc. (NASDAQ:TIWI; TSX: TIW). Connex's major shareholders are Telesystem International Wireless (TIW), Canada, and Vodafone, UK.

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.