ECI Telecom Expands Optical Platform with 10 Gigabit LAN Transport over Optical Transport Networks.

Delivers Full QoS for 10Gbps Ethernet over Standard DWDM/OTN without Compromising Either Environment

PETAH TIKVA, Israel -- ECI Telecom (NASDAQ:ECIL) today announced a standards-based solution for 10G LAN transport over DWDM. It enables superior functionality by adding Ethernet and IP over DWDM and Optical Transport Networks (OTN) with full QoS support, without compromising either environment. Operators gain bandwidth performance for triple-play aggregation, business data services and IP backbone connectivity with guaranteed quality of service.

ECI's new offering has been well received, with successful deployments in multiple networks including RCS & RDS (Romania), Bezeq (Israel), and additional carriers in Eastern Europe, India and Korea. "We are experiencing a growing demand for 10G LAN over DWDM services, both for connecting our core IP routers and as a service for high profile business customers," said Michel Hivert, VP Engineering and Planning Division of Bezeq. "ECI's solution enables us to offer new services today, and to seamlessly introduce up to 40G connectivity when necessary."

More and more carriers worldwide embrace Optical Transport Networks (OTN) as a universal infrastructure to carry next-generation Ethernet and IP services, as well as legacy SONET/SDH services, over high capacity and resilient WDM networks. However, ITU-T has yet to standardize the mapping of 10Gbps LAN to Optical Transport Networks. Compared to other solutions in the market, ECI's 10G LAN solution is unique in that it transparently maps full rate 10G LAN signals to full OTN line rate, without compromising the Ethernet transmission by not overriding important bytes and without limiting the effective rate.

The 10G LAN transponder is another configuration provided by the XDM's[R] unique universal base card that is used with the various platforms in the XDM family, targeting access, metro and long haul. This unique card design enables in-field configuration to support any service both at the line side and client side, rendering the XDM easy to deploy, operate and maintain.

The 10G LAN card is part of the XDM's comprehensive suite of next generation WDM capabilities, including full OTN mapping and multiplexing, multi-degree WSS ROADM, all-range[TM] reach from access to long haul and ease of operation, complemented by a state-of-the art wavelength management suite offered by the latest version (V3) of LightSoft[R] Network Management System.

The new 10G LAN card has already been successfully tested for interoperability with leading core IP routers.

"10G LAN is already a widely used interface for Ethernet and IP equipment, and our solution uniquely provides full QoS support without any compromises for both Ethernet and DWDM/OTN," said Eyal Shaked, Executive Vice President and General Manager of ECI Telecom's Optical Networks Division. "The market reaction to this new card exceeds our expectations, as seen in our shipping and intake records. It's another example of ECI's leadership in next generation optical networks, giving our customers the edge they need to stay competitive."

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.