ECI Telecom Chosen by ntl Telecommunications to be Prime Contractor of Turn-Key Digital TV Distribution and Telecommunications Network in Australia.

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--Oct. 23, 2000

Contract Value: AUS $140 million

ECI Telecom Ltd. (NASDAQ/NM symbol: ECIL) announced today that it has been selected by ntl Telecommunications to be the prime contractor and overall project manager for the initial rollout of ntl's Australian digital distribution and telecommunications network.

ECI Telecom was chosen to provide a full turn-key solution including video distribution equipment, ATM switches, SDH radio systems, infrastructure equipment and services for ntl Telecommunications' digital TV and telecommunications network.

The first three phases of the network build will have an investment of A$140 million, with additional stages being subject to customer's needs. The network will have over 100 points of presence covering New South Wales, Queensland, Victoria, Tasmania and the ACT and will include regional towns such as Toowoomba, Tamworth, Dubbo, Griffith, Albury-Wodonga and Mildura.

David Green, Managing Director for ntl Telecommunications in Australia, said, "ECI Telecom will manage the delivery of the ntl Telecommunications network enabling the core network to be launched for June 2001. This is a network designed for the demanding standards of Australian broadcasters."

"In choosing ECI Telecom, ntl has the guarantee of timely delivery, the benefit of one company being ultimately responsible and the inherent reliability from having best-of-breed suppliers," said Green.

Commenting on the history of ntl working with ECI, Green said, "ntl has successfully worked with ECI in the UK on a number of projects; we worked together on ntl's first microwave carrier grade network back in 1992 and this has continued throughout our UK fibre rollout."

Commenting on the win for ECI Telecom, Doron Inbar, President and CEO of ECI Telecom, said, "ECI Telecom's Integrated Network Solutions (INS) division's experience in implementing turn-key solutions will certainly contribute to the success of this project. We are extremely pleased to have been chosen by ntl Telecommunications as a partner in the expansion and growth of its network, to provide our video over radio SDH network solutions which will cover the vast majority of the business centers and population in Australia".

About ntl Telecommunications in Australia:

ntl Telecommunications Pty Ltd is a joint venture with WIN Television and Southern Cross Broadcasting and ntl Australia Pty Ltd. ntl Australia Pty Ltd is owned by ntl Inc (NASDAQ: NTLI).

ntl Telecommunications will offer distribution and contribution services to broadcasters, wholesale bandwidth to telecoms carriers and ISPs throughout regional Australia and the capital cities. ntl Telecommunications will use fibre and microwave configured in SDH ring topography with an ATM platform to provide a carrier grade network.

The network will have over 100 points of presence covering New South Wales, Queensland, Victoria and the ACT and will include regional towns such as Toowoomba, Tamworth, Dubbo, Griffith, Albury-Wodonga and Mildura. ntl Telecommunications will provide distribution solutions for Southern Cross Broadcasting and WIN Television for a contracted period of 10 years.

About ECI Telecom:

ECI Telecom Ltd. is a provider of integrated network solutions for digital communications and data transmission systems. The Company designs, develops, manufactures, markets and supports end-to-end digital telecommunications solutions for today's new services and converging networks. The Company's products create bandwidth, maximize revenues for network operators, expand capacity, improve performance and enable new revenue-producing services. In doing so, they enhance the capabilities of existing networks to support voice, data, video and multimedia services. ECI Telecom's equipment supports traffic in more than 500 service networks in over 145 countries.

This press release and additional information about the Company, are available on ECI Telecom's web site: 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. 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.