ECI Telecom Chosen to Supply Long-Haul Optical Solutions to India's Gas Authority Network; Deal Demonstrates ECI's Continued Versatility in Providing Optical Telecom Solutions for Utility Companies Becoming Active in Providing Telecom Services.

PETAH TIKVA, ISRAEL -- ECI Telecom (NASDAQ:ECIL) today announced that GAIL (India) Limited, the Gas Authority of India, has selected ECI's optical networking solutions for the expansion of its nationwide Gail-Tel South Expansion network. ECI's equipment will support this long-haul SDH regional network that will span thousands of kilometers and increase GAIL's capacity to deliver services as a carrier of carriers.

This contract establishes the versatility of ECI's optical transmission solutions and its success in addressing the needs of alternative telecom carriers such as utility companies. This partnership with GAIL also furthers ECI's strong presence in India and its key role in supplying the most advanced telecommunications equipment to this rapidly developing market.

"We were very impressed with ECI's success in working with other major networks in India," said Mr. Rajesh Vedvyas, General Manager (Telecom), GAILTEL. "ECI's solution is not only most cost-effective, but it also brings immense flexibility and operational value to our telecom expansion."

GAIL will deploy ECI's converged optical solution, which includes the XDM(R) Multi-Service Provisioning Platform, the BroadGate(TM)-40 platform for bandwidth management utilization and LightSoft(R), ECI's advanced network management system. This solution was selected based on ECI's abilities to support diverse and complex environments with its optical solutions, providing GAIL with the ability to grow and expand its network.

"GAIL is not only a leader in the Indian business market but also a pioneer in the adoption of advanced technologies," said Aviel Tenenbaum, President of ECI Telecom's Asia Pacific Regional Business Unit. "We look forward to working with GAIL to help implement a cost-effective and scalable solution for their telecom network expansion."

About GAIL (India) Limited

GAIL, a natural gas major, is focused on all aspects of the gas value chain including Exploration and Production, Gas Marketing and Transmission, Gas Processing, LPG Production, Petrochemicals and telecom. The company has also extended its presence in power, LNG re-gasification, city gas distribution and E & P through Equity/JV participations.

About ECI Telecom

ECI provides advanced telecommunications solutions to leading carriers and service providers worldwide. By translating a deep understanding of their needs into innovative, technologically advanced solutions, ECI enables its customers to increase the value of the infrastructure of their networks and reduce operating expenses. ECI's platforms provide carriers and service providers with carrier-grade solutions for easily introducing new revenue-generating services.

ECI provides innovative IP service delivery solutions to the converged telecom networks encompassing Broadband access gateways, Service Edge Routers, Optical transport, NGN VoIP and multimedia applications and services. ECI maintains a global sales, marketing and customer support network, as well as a host of strategic channel relationships worldwide.

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.