ECI Telecom Chosen to Supply SDH Solutions for City Network in the West of China; Contract Value: US$ 5.3 million.

PETAH TIKVA, Israel--(BUSINESS WIRE)--May 19, 1998--ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) announced today that it has been chosen by the PTB of Kunming, the capital of China's Yunan province, to supply its SDH solutions for Kunming's city network. The project was developed as part of Kunming's PTB Telecom network modernization plan.

Under this $US 5.3 million contract, ECI Telecom will deliver a comprehensive package of its SDH solutions including SDM-16 (2.5 Gbit/s) Add/Drop multiplexers, and eNM, network management solutions. The Yunan City Network will be deployed in multi-ring configurations, distributing voice and data to the 6 million residents of Kunming.

ECI Telecom's SDM-16 Add/Drop multiplexers provide high capacity transmission, supporting two 2.5 Gbit/s optical aggregate line interfaces and enables access to 2 Mbit/s tributary signals. The system supports a wide range of services and interfaces including telephony, data and video, and allows easy integration with existing and future networks. ECI Telecom's eNM network management solutions will monitor and manage Kunming's network, performing end to end service management operations from a central operator station.

Mr. Hezi Lapid, ECI Telecom's Corporate Vice President and General Manager, Network Systems Business Unit said: "ECI Telecom is rapidly becoming one of the largest suppliers of SDH solutions to China as we continue to add to our well-established track record in China. We are pleased to be working with Kunming on the modernization of their Telecom networks."

Based on ECI Telecom's system flexibility and management system performance, ECI Telecom was chosen out of eight vendors participating in Kunming's PTB competitive bidding process.

The Kunming City Network is expected to be put into operation in June 98.

Amongst other significant ECI Telecom SDH projects in China are: The longest SDH backbone network in the world supplied by ECI Telecom covering 7,298km in Inner Mongolia. Additionally, ECI Telecom and Hunan Post and Telecom Administration (HPTA) have repeatedly worked together to build the infrastructure of the Hunan Province of China. ECI Telecom's SDH activity in Hunan includes a recently announced US$31 million SDH contract to distribute voice, data, and video to the millions of residents of the Hunan province. ECI Telecom has also supplied major SDM-16 projects to the provinces of Inner Mongolia, Anhui, and Zhejiang.

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 ECI Telecom, 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 ECI Telecom, 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 ECI Telecom's filings with the Securities and Exchange Commission.

CONTACT: Doron Inbar

ECI Telecom Ltd.

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Leo Hinkley

ECI Telecom Ltd.

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