ECI Telecom Awarded New SDH Metropolitan Network Contract in Russia.

PETAH TIKVA, Israel--(BUSINESS WIRE)--Dec. 16, 1997--

Contract Valued Over US $10 Million

ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) announced the receipt of a new framework agreement valued over US $ 10 million from the MTU Inform Company, Moscow, to expand the existing city wide SDH network, supplied by ECI Telecom during the past year.

Under the terms of the agreement, ECI Telecom will supply SDM-16 2.5 Gbit/s Add and Drop Multiplexers and SDM-4 622 Mbit/s Add and Drop Multiplexers to facilitate the distribution of telecommunications services to the 12 million residents in the Moscow region. Two orders amounting to US $6.5 million have already been received by ECI under this new contract. ECI Telecom expects to complete delivery of the equipment for this new contract by first half of 1998.

The receipt of the new framework agreement follows the successful implementation of the SDH Moscow Metropolitan Network earlier this year, which includes ECI Telecom's SDM-16 systems as part of the backbone, and SDM-4 systems installed in multi-ring configurations. These multiplexers already support live traffic and are managed by ECI Telecom's eNM management system. Several SDM-4 systems have additionally been upgraded without traffic interruption to SDM-16 systems to support further capacity requirements.

Mr. Levi Zelkind, President of ECI Telecom CEE and CIS Region said: "During the past two years, ECI has become a major supplier of SDH and Access equipment to several countries in the CIS and CEE region. We are very pleased to contribute to the progress of sophisticated telecommunications in this area and are happy to be working hand in hand with local service providers to further enhance their networks".

ECI Telecom has deployed major SDH projects within the Moscow region, including the successful implementation of an SDH network for Vimpelcom's BeeLine Cellular Network, a complete SDH Trunk/Access turn-key project contracted by Sprint/Global ONE and the Moscow Metropolitan Trunk Network of the MTU Inform Company. Additionally, ECI Telecom's SDH solutions are operational throughout numerous regional networks in the CIS region including Moscow, Novogrod, Irkutsk, Izevsk, Siberia, Belarus, Georgia, Azerbaijan, and Kyrgizstan.

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.

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.

CONTACT: Doron Inbar Lippert/Heilshorn & Associates Inc.

ECI Telecom Ltd. Jody Burfening/Jennifer Agatston

30 Hasivim Street, 212 838 3777 (ext. 106 or ext. 128)

Petah Tikva, 49133 [e-mail]

Tel: [phone] [e-mail]

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