ECI Telecom Announces Breakthrough Into Portuguese Market With REN Contract.

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--March 3, 2004

REN Selects XDM(R) To Upgrade Existing Infrastructure With

SDH/DWDM And Fast Ethernet Capabilities

ECI Telecom (NASDAQ:ECIL) has been awarded a contract to supply the XDM(R) MSPP and comprehensive local support services to Rede Electrica Nacional, S.A., (REN), the Portuguese electricity transmission company. ECI Telecom overcame fierce competition from the world's leading equipment providers to secure a contract to deploy and support ECI Telecom's XDM platforms in over 30 sites nationwide, to create a national transport backbone with SDH/DWDM and next generation Ethernet capabilities.

Established in 1994, REN holds the concession to operate the National Electricity Transmission Network providing a public utility service in mainland Portugal. In February 2002, Portugal's national telecommunications regulatory body awarded REN a license to operate as a telecommunications service provider in Portugal. REN, in an effort to upgrade its existing network, required support from an experienced partner to provide the most appropriate technology that would support today's requirements and allow for future growth. ECI Telecom fulfilled the criteria needed to evolve and adapt along with the company's business model.

"The versatility of ECI's MSPP offering was a major factor in our decision to implement the XDM platform within our network", commented Antonio Manuel Fonseca, director of Information Systems Division at REN. "In addition, the speed of deployment - anticipated to be under two months for the roll out of the first live units - will prove a significant advantage in bringing about a financial return on our investment as quickly as possible."

He continued, "We consider the XDM a reliable investment providing us with the flexibility and scalability to offer next generation services as demand grows. ECI Telecom, together with Omnitecnica, a provider of Telecommunication Solutions for the Portuguese market, are providing us with a comprehensive local support program, which when combined with the superiority of their technology means that we can confidently offer more advanced services."

ECI's XDM MSPP installation serves as a building block for the advancement of REN's existing fibre network into a national transport backbone, marking the first step in a series of ongoing development plans for the Portuguese service provider. The platform's combined SDH/DWDM architecture enables REN to utilise all PDH services, SDH services, DWDM lambda services and next generation Ethernet services simultaneously. The XDM MSPP converges intelligent optical networking capabilities with advanced data functionality including ATM and Ethernet Layer 2 over SDH/SONET, CWDM and DWDM. This converged solution facilitates a smooth and cost-effective migration to a service rich network while introducing significant CAPEX and OPEX savings.

"For ECI Telecom, this project with REN represents a real breakthrough into the Portuguese market," commented Ido Gur, VP sales & marketing for ECI's Optical Networks Division. "We identified enormous potential for the XDM following increased interest from the fixed players, utility operators and cellular operators for a converged architecture solution that would enable them to stay ahead in this highly competitive landscape."

About REN

Rede Electrica Nacional, S.A. holds concession to operate the National Electricity Transmission Network. It provides a public utility service in mainland Portugal, which includes:.

- Managing the technical aspects of the National Electricity System

(SEN) and managing the whole Public Electricity Supply System

(SEP).

- Transmitting electricity and planning, constructing, operating and

maintaining the National Electricity Transmission Network (RNT).

- Identifying the need for new SEP generating centers and drawing up a

list of potential sites.

In fulfilling its joint mission as system operator and market operator, REN is responsible for ensuring the continuous supply of electricity at the lowest possible cost, meeting quality (frequency and voltage) and safety criteria, maintaining the balance between supply and demand and protecting the legitimate interests of different players in the electricity market. In short, REN's main goals are to contribute towards the country's development and well being of its people and to create value for its shareholders. Further information is available on the REN website www.ren.pt.

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.