ECI Telecom Company, Lightscape Networks, to Supply Next-Generation Optical Networking Equipment to China Unicom.

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--Feb. 28, 2002

XDM(TM) optical platform to be deployed as part of GSM network

expansion plan

Lightscape Networks, an ECI Telecom company (ECI Telecom: NASDAQ:ECIL) and leading innovator in optical networking, has signed a contract with a subsidiary of China Unicom, China's second largest mobile communications company.

Zhejiang Unicom, which has approximately 1.3 million subscribers throughout the Chinese province of Zhejiang and accounts for ten per cent of China Unicom's business, is expanding its GSM network using Lightscape Networks' highly scalable XDM(TM) optical platform.

Zhejiang Unicom's GSM mobile communications operation, launched in 1995, is responsible for telecommunications infrastructure as well as network and business operations. The cellular operator is investing in next-generation optical networking equipment in the metropolitan area network (MAN) to meet growing demand for data, long distance and other value-added communications services.

Under the new agreement, Lightscape Networks' XDM platforms will be deployed in the nodes of all existing MSC (Mobile Switching Centres) across Zhejiang Unicom's GSM network, using their built-in DXC (Digital Cross Connect) and multi-ADM (Add Drop Multiplexing) functionalities, thus significantly increasing the networks' capacity for voice traffic. Eventually, the network will expand to provide full cover for three cities in Zhejiang, including Hangzhou, Taizhou and Jiaxing. One of the key objectives for the programme is to develop a highly scalable infrastructure capable of fully supporting existing customers, accommodating new subscribers and offering a migration path to next-generation services as and when required.

Lightscape Networks' XDM solution is a pioneering, next-generation optical networking platform featuring powerful digital cross connects (DXC), flexible ADM operating systems and high-capacity WDM (Wavelength Division Multiplexing) within a single device. The XDM's excellent IP, ATM and narrowband connections, its ability to ease network bottlenecks and to interoperate with equipment from multiple vendors were all key reasons behind its selection by Zhejiang Unicom for this project. Through strategic deployment of the XDM platform, carriers can easily meet with the growing demand of mobile telecommunications services by simply expanding the corresponding modules without the need of adding any equipment, thus enhancing network performance and functionality and minimising risk.

"The successful deployment of XDM into Zhejiang Telecom's GSM network provides a strong basis for its future development," said Anthony Chow, General Manager of Lightscape Networks' joint venture company HETC. "We are delighted that Zhejiang Telecom has selected Lightscape Networks' XDM platform as a foundation for the on-going development of its network applications.

"The XDM platform's innovative single architecture approach has been welcomed by metropolitan area network operators the world over," said Eran Dariel, President & CEO of Lightscape Networks. "Significantly, Zhejiang Unicom joins a growing list of mobile communications companies in the Asia-Pacific region to select the XDM as a cost-effective solution that meets their immediate bandwidth expansion requirements and prepares them for migration to optical networking over time."

About Zhejiang Unicom

Zhejiang Unicom, founded in 1995, is a subsidiary of China Unicom in the Zhejiang province and is primarily responsible for the construction of telecommunications infrastructure as well as network operations and business development. Zhejiang Unicom currently operates offices in Hangzhou, Ningbo, Wenzhou, Taizhou, Huzhou, Jiaxing, Jinhua, Shaoxing, Zhoushan, Lishui and Quzhou. Zhejiang Unicom is instrumental in accelerating the development of data communications, long distance calls and other value-added telecommunications services in China. Zhejiang Unicom has approximately 1.3 million subscribers since launching its GSM mobile telecommunications business in 1995. For more information on Zhejiang Unicom, please visit www.zj165.com

About China Unicom

Founded in 1994, China Unicom is the only large-scale, state-owned telecommunications operator approved by the State Council in China. China Unicom offers basic and value-added telecommunications services including wireless mobile telecommunications, data communications, international and domestic long distance calls, local calls, wireless paging, satellite communications, value-added telecommunications services and other associated businesses.

About Lightscape Networks

Lightscape Networks is a leading innovator of next generation intelligent optical networking solutions. Leveraging more than 10 years of global experience, Lightscape Networks offers advanced optical platforms that combine instant provisioning with on-demand network scalability. The Company's highly dense, multi-service XDM is used by carriers to build flexible network topologies that cost-effectively scale to future demands. Lightscape Networks' solutions are deployed in 45 countries worldwide and serve both major carriers and emerging service providers at all stages of optical network implementation. The Company has corporate headquarters in Petah Tikva, Israel and regional offices across Europe and Asia Pacific. In the USA the regional headquarters are in Herndon, Virginia. Lightscape Networks is a wholly owned subsidiary of ECI Telecom Ltd. For more information on Lightscape Networks, please visit www.lightscapenetworks.com

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 networking 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. Additional information about ECI Telecom is available on the Company's Website: 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. 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, commercialisation and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.