ECI Telecom Again Chosen by Deutsche Telekom as Major Supplier of ISDN Network Terminators.

PETAH TIKVA, Israel--(BUSINESS WIRE)--Feb. 17, 1999--ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) announced today the award of an additional major supplier contract from Deutsche Telekom to provide BRI ISDN Network Termination Units (NTBA).

Under the new contract, ECI Telecom will supply over 840,000 PRONTO units (ISDN Network Terminators) to connect residential and SOHO (Small Office/Home Office) customers throughout Germany to ISDN services. ECI Telecom's PRONTO was chosen for the two year contract following a competitive bidding process involving many different vendors. With the high demand and rapid penetration of ISDN services in Germany, ECI Telecom estimates the new contract to exceed US $30 million, within the two year period. ECI Telecom's Network Terminators have become the first choice of leading service providers who aim to rapidly deploy sophisticated ISDN services within their countries.

Mr. David Rubner, President and CEO, ECI Telecom, said: "We are pleased to be chosen for the second time by our long standing customer, Deutsche Telekom, to supply ISDN Network Termination equipment. Deutsche Telekom is a world leader in ISDN service deployment. ECI Telecom has recently received many significant contracts to supply ISDN Network Terminators and has become a leader in this market."

Mr. Jehonatan Neuberger, General Manager of ECI Telecom, Germany added: ECI Telecom is committed to working together with Deutsche Telekom, to provide solutions for its ISDN requirements and expedite fast delivery schedules. The new contract with Deutsche Telekom strengthens our position in this dynamic market."

Providing digital communications technology for enhanced business and residential online communications, ECI Telecom's PRONTO systems enable direct, cost-effective ISDN connectivity of up to 128Kbit/s. The PRONTO series supports an array of advanced service capabilities, such as high-speed access to the Internet, reliable data transfer, high-quality video conferencing and digital telephony, fast file transfer and electronic mail.

ECI Telecom has already supplied its network termination solutions in Germany, Italy and Israel delivered over 550,000 network termination units in 1998. Continued growth in quantities is expected for 1999 following new contracts with leading operators including a recently announced sole supplier contract with TeleDanmark, Belgacom and Matav.

ECI Telecom's PRONTO systems are manufactured in cooperation with Uniskor, a Nisko-owned company.

A provider of integrated network solutions, ECI Telecom designs, develops, manufactures and markets digital telecommunications and data transmission systems, enabling network operators to deliver cost-effective services. ECI Telecom's systems provide capacity expansion, flexibility and management functions to more effectively utilize existing networks for voice, data, wide area and integrated networks.

This press release and additional information about the Company, is 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, the occurrence of which involves 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.