ECI Telecom Company, Inovia Telecoms, Chosen For an Additional Three Years as a Major Supplier Of xDSL Equipment to France Telecom in France.

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--Jan. 14, 2002

ECI Telecom Company, (NASDAQ/NM symbol: ECIL) Inovia Telecoms a leader in the multi service access gateway market, announced today that it has been chosen by France Telecom as a major supplier of xDSL-based solutions in France for an additional three year period.

Inovia's multi service access gateway, Hi-FOCuS(TM), will continue to be deployed by France Telecom to deliver fast Internet, Leased Line services and other broadband services to both residential and business subscribers in France.

France Telecom chose ECI's Inovia Hi-FOCuS solution following a competitive bidding process that involved approximately 20 xDSL equipment vendors. France Telecom has one of the most ambitious plans for mass deployment of broadband services over xDSL infrastructure in Europe. In France, the operator has a goal to connect 1.3 million xDSL subscribers by the end of 2002, and to cover 80% of the population with xDSL Web Access by 2003.

According to France Telecom, during the past two years, ECI's Inovia has succeeded to handle and manage this type of ambitious turn-key project.

Raphael Berdah, President of ECI Telecom France, said: "We are honoured that ECI's Inovia Telecoms has been selected once again by France Telecom, one of the most important carriers worldwide. This selection is a further endorsement of Inovia's leadership in this field, and its ability to deliver and manage such a large-scale xDSL deployment. As part of our strategy, we are focused on partnering with leading operators for large-scale xDSL deployments such as with France Telecom".

About Hi-FOCuS

With the surging demand for broadband services, Inovia's Hi-FOCuS system presents an optimised solution for mass deployment, focused on reducing the initial and ongoing operational costs involved in the delivery of broadband services.

Inovia's multi-service access gateway, Hi-FOCuS(TM), is a high-density, high-end access gateway that handles thousands of subscriber lines of any type (ADSL/SDSL/VDSL/POTS/ISDN), with advanced functionalities including multi-level multicast, integrated voice gateway, FTTx and more. Our field proven platform improves the value of carriers' infrastructure by providing simultaneous access for voice, data, video and next generation applications. The modular system with interchangeable line-cards answers the carrier's need for density, QoS provisioning, scalable and mass deployable solutions. Today, our cost-effective Hi-FOCuS(TM) is the preferred solution for mass deployment by leading providers worldwide.

About Inovia Telecoms

An ECI Telecom Company, Inovia's technological excellence is derived from years of experience in the telecommunications market. Inovia's solutions for the multi-service access gateway market enhance the value of carriers' infrastructure to support robust, value-added services, including video channel streaming, multicasting, Video-on-Demand, Fast Internet and TV Commerce. Suited for any network topology, Inovia's modular access gateway is the preferred solution for mass deployment by leading providers worldwide. Inovia has an extensive worldwide sales network, supported by subsidiaries in the U.S., Europe, Asia, and Latin America.

Inovia has already delivered over a million xDSL lines to operators around the world.

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, maximise 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.

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, the ability to complete transactions with investors, product and market acceptance risks, the impact of competitive pricing, product development, commercialisation and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.

About France Telecom

France Telecom is one of the world's leading telecommunications carriers, with over 88 million customers on the five continents (220 countries and territories) and consolidated operating revenues of 33.7 billion euros for 2000 (31.6 billion at September 30, 2001). Through its major international brands, including Orange, Wanadoo, Equant and GlobeCast, France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, wireless, Internet, multimedia, data, broadcast and cable TV services.

France Telecom is the second-largest wireless operator and the number three Internet access provider in Europe, and a world leader in telecommunications solutions for multinational corporations. France Telecom (NYSE: FTE) is listed on the Paris and New York stock exchanges.