ECI Telecom Announces First Mini MSPP with Built-in Ethernet Switch and DS0 Cross-Connect - Enables Remote Management from Base Station or Sub-stations.

PETAH TIKVA, Israel -- Optimized for Metro access and WANs, the BroadGate-40's Ethernet capabilities enable cellular operators and utility companies to offer new services

ECI Telecom (NASDAQ: ECIL) today announced its BroadGate(TM)-40, a miniature Multi-Service Provisioning Platform (MSPP), designed for metro access and Wide Area Networks (WANs). The scalable architecture of the BroadGate-40 allows for the provisioning of new carrier-class Ethernet services over SDH to meet the needs of medium and large enterprises, utility companies and cellular operators.

Unique to ECI's BroadGate-40 MSPP is the narrowband cross-connect integrated in the platform, which includes low bit rate interfaces such as voice channels and V24/V35 for data services. These capabilities enable cellular operators as well as utilities to remotely control various types of equipment sets in a unified manner from the Base Station Transmitter (BTS) or sub-stations. This eliminates the need for multiple conversion units and delivers both CapEx and OpEx savings.

The BroadGate-40 supports powerful Layer 1 and Layer 2 Ethernet capabilities allowing carriers such as fixed line and utility operators - railway, electricity and gas - to offer new revenue-generating data services like L2 VPNs, Virtual Private LAN Service (VPLS) and enhanced Ethernet connectivity.

The BroadGate-40 provides a highly flexible platform enabling service providers to easily install and then expand for additional services as needed. The BroadGate-40 supports standard TDM services starting from 64Kbps (DS0) through DS3/E3 and up to STM1 and STM4. Complete with ECI's network management system, the BroadGate-40 delivers full remote management from the same box with support for multiple interfaces and traffic types reducing capital and operational expenditures. The current BroadGate-40 release supports SDH transmission only.

"Adding this latest miniature MSPP to our optical product portfolio gives the XDM platform ultimate breadth and depth. It allows ECI to extend its MSPP capabilities from metro access to regional and right to the core of optical networks," said Eran Dariel, Executive Vice President and General Manager of ECI Telecom's Optical Division. "We believe the BroadGate-40 will greatly benefit utilities and cellular operators looking to increase their revenue streams while reducing costs."

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 specializes 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, commercialization and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.