ECI Telecom Deploys SDH Cross Border Telecommunications Links Between Germany and Neighboring Countries.

PETAH TIKVA, Israel--(BUSINESS WIRE)--July 9, 1998--

Cross Border Links Connected to Deutsche Telekom's SDH 

International Backbone Network (ITN-D) Supplied By ECI Telecom 

Contract Value including Deutsche Telekom's ITN-D network:

DM 25 million

ECI Telecom Ltd. (NASDAQ/NM symbol: ECILF) announced the opening of SDH cross-border telecommunications links between Deutsche Telekom and neighboring European countries, supplied by ECI Telecom.

An opening ceremony last month marked the beginning of traffic flow within one of the cross-border networks. ECI Telecom worked closely with the two major service providers from the initial stages of network planning to the commissioning of the network. The cross-border ring-routes form the center piece of the global network installed in a ring topology that consists of ECI Telecom SDM-16 systems, configured as 2.5 Gbit/s Add/Drop Multiplexers and regenerators.

Mr. Jonathan Neuberger, General Manager of ECI Telecom GmbH said: "We are very pleased that our strategic partnership with Deutsche Telekom has been expanded to encompass backbone networks and to deliver SDH based solutions to neighboring major European operators".

The German side of the cross border network is an integral part of Deutsche Telekom's German RINGNET supplied by ECI Telecom under a contract valued at DM 18 million.

First customers were connected to Deutsche Telekom's RINGNET ITN-D in December last year. Consisting of ECI Telecom's SDM-16 2.5Gbit/s Add and Drop Multiplexers (ADM), the ITN-D distributes all incoming and outgoing international traffic for Germany.

Special optical solutions were specifically designed and developed by ECI Telecom for Deutsche Telekom and are installed throughout the ITN-D network and the cross-border link network to enable transmission of traffic over long distances of up to 110 km, eliminating the need for regenerators and optical power booster equipment between each ADM. The SDM-16 enables direct access of 2Mbit/s bandwidth from 2.5Gbit/s fiber.

The ITN-D and the cross border ring are managed by ECI Telecom's Network Management System(eNM) in the WN-ITC international network management center of Deutsche Telekom in Frankfurt.

ECI Telecom's SDH activity in Germany additionally includes major projects such as Deutsche Telekom's VISYON network, which comprises a large installed base of SDM-1, SDM-4 and SDM-16 terminals, Add/Drop and local cross connect multiplexers in ring and mesh topology throughout Germany.

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 Company, is now available on ECI TELECOM's site on the World Wide Web: 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, 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 the Company's filings with the Securities and Exchange Commission.

CONTACT: ECI Telecom Ltd., Petah Tikva

Doron Inbar

Tel: [phone]

Fax: [phone]

or

ECI Telecom Ltd, Fort Lauderdale

Leo Hinkley

Tel: [phone]

email: [e-mail]