ECI Telecom Chosen by MGTS, Moscow, to Supply Largest Metropolitan Network in Russia; Contract Value: US $20 Million.

PETAH TIKVA, Israel--(BUSINESS WIRE)--Feb. 11, 1998--ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) announced today the signing of a contract with MGTS, Moscow City Telephone Network, valued at US $20 million for the supply of SDH equipment. This is one of the largest SDH orders to be received in Russia.

Under the contract terms, ECI Telecom will supply MGTS with its SDM-16 (2.5 Gbit/s) Add/Drop Multiplexers, SDM-4 (622 Mbit/s) Add/Drop Multiplexers together with ECI's network management equipment featuring high level management (eCNM) and full maintenance of the network. The new Metropolitan network will interconnect different regions around Moscow, providing service to the residents of Moscow. ECI has been selected by MGTS as supplier of SDH solutions following a competitive tender between different suppliers of SDH equipment.

At the contract signing, Mr. Lagutin, General Manager of MGTS said: "With the signing of this contract, ECI has joined the ranks of leading suppliers of SDH solutions to Russia".

Mr. Levi Zelkind, President of ECI Telecom CEE and CIS region added: "We are pleased and feel privileged that ECI's solutions are paving the way for the development of sophisticated telecommunications services in Moscow and throughout the region."

ECI Telecom's SDH network solutions incorporate the full range of field-proven equipment and support necessary for backbone, trunk and SDH Access applications transmitting at the STM-1, STM-4, STM-16 and 10 Gbit/s rates.

ECI has supplied customized SDH networks to dozens of operators around the world. Many of these incorporate ECI's integrated solutions and Turn-key services.

The long list of ECI-supplied SDH projects in Russia includes: the recently announced MTU Inform contract, Vimplecom BeeLine Cellular network, Global ONE's SDH network, MMT (Moscow Long-Distance and International Telephone Company) SDH network and projects in several other cities around Russia. Additionally, ECI has supplied SDH projects in the cities of Novogrod, Irkutsk and Izevsk, Kirov, as well as in other CIS countries such as 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. -0-

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: ECI Telecom Ltd.

Doron Inbar

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ECI Telecom Ltd.

Leo Hinkley

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Lippert/Heilshorn & Ass. Inc.

Jody Burfening/Jennifer Agatston

212/838-3777 (ext.106/128)

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