ECI Telecom Chosen as Sole Supplier of SDH Solutions for "CAT2000 Project", Thailand; Contract Value: US $5.2 Million.

PETAH TIKVA, ISRAEL--(BUSINESS WIRE)--

May 10, 1999, ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) announced that it has been selected as exclusive supplier of SDH solutions for the "CAT2000 network", contracted by the Communication Authority of Thailand.

Designed to accommodate future growth and the development of Thailand's telecommunications needs, the Communication Authority of Thailand's CAT2000 network will form an over 2000 km long backbone that will link CAT Telecom Centers to the satellite earth station in the north eastern part of the country. The project will provide a diversity link to the "China to South East Asia" telecommunications network.

Following a competitive bidding process, ECI Telecom was awarded a US $5.2 million sole supplier SDH order. The contract includes the supply of ECI Telecom's SDM-16 Add/Drop Multiplexers, which enable direct access of 2Mbit/s bandwidth from 2.5Gbit/s fiber and SDM-1 155 Mbit/s Add/Drop Multiplexers. The new network's capabilities will be further enhanced by ECI Telecom's eNM network management solutions that will centrally manage and monitor the entire access and backbone network. Additionally ECI Telecom has offered special optical solutions that enable the transmission of traffic over long distances of over 100km, substantially reducing the number of regenerators needed within the network.

Mr. Amos Talmor Hubschmann, ECI Telecom's Corporate Vice President and General Manager of the Asia Pacific Region said: "We are very pleased to have been chosen by the Communications Authority of Thailand, to help build one of the country's most significant networks. Our proven experience in the field of innovative transmission solutions, together with our comprehensive understanding of the market's needs have made us a most suitable candidate for supplying such a project and we look forward to working together with CAT to build Thailand's telecommunications networks of the future."

A provider of integrated network solutions, ECI Telecom designs, manufactures and markets end-to-end digital telecommunications solutions for today's new services and converging networks. ECI Telecom's advanced solutions create bandwidth, maximize revenues for network operators, expand capacity, improve performance, and enable new revenue producing services. Enhancing the capabilities of existing networks to support voice, data, video and multimedia services, ECI Telecom's equipment is supporting traffic in more than 300 service networks in over 145 countries throughout the world.

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.