ECI Telecom Chosen by PLDT, Philippines, to Supply Toll Quality Compression Equipment for Microwave Network Expansion.

PETAH TIKVA, ISRAEL--(BUSINESS WIRE)--Nov. 24, 1998--

First Commercial Sales For ECI Telecom's New QuadCoder 300E(tm)

ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) announced today the receipt of an order to supply its new QuadCoder 300E(tm) compression equipment to PLDT, Philippines.

PLDT, Philippines' largest Operator, selected ECI Telecom's QuadCoder 300E systems, to connect several toll switches within the Philippines. The new QuadCoder 300E(tm) is an enhanced version of ECI Telecom's QuadCoder product line, ideal for inter-city applications. PLDT will deploy the new systems to deliver 4:1 Toll Quality Compression of voice and fax traffic over its existing networks.

Delivery of equipment is expected towards the end of the year, and traffic flow will be initiated in early 1999.

Mr. Felizardo P. Dela Merced, PLDT Vice President for Program Planning and Engineering said : "ECI Telecom's QuadCoder 300E systems present an ideal solution for the expansion of traffic carrying capabilities with minimal investment in resources. PLDT has been purchasing ECI Telecom's Toll Quality compression equipment since 1992 with complete satisfaction, and therefore selecting this solution for immediate network expansion was a natural choice for us."

Mr. Amos Talmor, ECI Telecom's Corporate Vice President and General Manager of the Asia Pacific Regional Business Unit said: "Selecting ECI Telecom's QuadCoder 300E systems to support the increase in traffic between the islands in the Philippines, demonstrates the commercial and technological viability of this system. Once again our product provides an economic Toll Quality solution with a fraction of the cost of establishing a completely new network."

ECI Telecom's QuadCoder product line provides a 4 to 1 compression of Toll Quality voice and Voice-Band Data transmission. Featuring the LD-CELP Compression algorithm, the QuadCoder 300 achieves Toll Quality voice compression and Fax Demodulation techniques that provide full support of standard as well as non-standard facsimile protocols. Customers around the world have selected the QuadCoder 300 as a preferred Toll Quality compression solution for domestic and cellular applications.

"We look forward to working on this project with PLDT, a valued customer of ECI Telecom and to continue to supply cost-saving solutions for its networks" continued Mr. Talmor.

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.