ECI Provides Cellular Operators with Solutions for Next Generation Networks; Migration Path Further Strengthens ECI's Leadership in the Mobile Arena.

PETAH TIKVA, Israel -- ECI Telecom Ltd. (NASDAQ: ECIL) today announced the release of its enhanced Multi Service Provisioning Platform (MSPP), which enables cellular operators to significantly scale up their networks to meet increasing subscriber demand.

The increasing demand for bandwidth and Ethernet-based services drives the need for high-capacity MSPP systems. ECI now offers service providers the largest low-order cross connect on the market together with a smooth migration path from existing next generation SDH networks to advanced Optical Transport Networks (OTN). The new feature set takes the XDM(R) MSPP product line to the next level by enabling operators to support customer needs today while preparing for the future.

Powered by a unique 120Gbps switching fabric and high-density service cards, the XDM allows cellular operators to cost-effectively deploy and grow 3G networks and to efficiently aggregate traffic from the edge to the core. Similarly, ILECs can optimize their network by grooming a mixture of TDM, ATM, Ethernet and IP, to the optical core backbone.

The new feature set makes the XDM the first platform to optimally combine next-generation SDH with OTN networking. It provides advanced software configurable SDH/OTN interfaces that eliminate the need for OTN transponders, thereby reducing capital expenditure by the carrier.

"Our commitment to the next-generation SDH market, together with our strong focus on Optical Transport Networking, guide our efforts to offer our customers the solutions to bridge the gap between the TDM and packet worlds," said Eyal Shaked, Executive Vice President and General Manager of ECI Telecom's Optical Networking Division. "We're seeing enormous demand for these new capabilities and are committed to begin supplying them to several key accounts as early as the second quarter, 2006."

About ECI Telecom

ECI provides advanced telecommunications solutions to leading carriers and service providers worldwide. By translating a deep understanding of their needs into innovative, technologically advanced solutions, ECI enables its customers to increase the value of the infrastructure of their networks and reduce operating expenses. ECI's platforms provide carriers and service providers with carrier-grade solutions for easily introducing new revenue-generating services.

ECI provides innovative IP service delivery solutions to the converged telecom networks encompassing Broadband access gateways, Service Edge Routers, Optical transport, NGN VoIP and multimedia applications and services. ECI maintains a global sales, marketing and customer support network, as well as a host of strategic channel relationships worldwide.

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.