ECI Telecom Launches ATX-600 - a High-Compression, Toll Quality ATM Media Gateway for Telephony Over ATM.

GENEVA--(BUSINESS WIRE)--Oct. 13, 1999--

ECI Telecom. (NASDAQ/NM symbol: ECIL) acknowledged leading provider of toll-quality compression and voice processing solutions is launching the ATX-600, toll-quality telephony over ATM (AAL2) Media Gateway, as the latest addition to ECI Telecom's xTX family of toll-quality compression and Inter-Networking solutions.

The ATX-600 offers service providers new cost saving opportunities, increased bandwidth efficiency and the ability to provide multiple service convergence (voice, data, fax, video, voice-band data) while ensuring toll quality voice over ATM networks.

Among its important features, ECI Telecom's ATX-600 delivers a toll quality voice traffic compression ratio of up to 20:1, simultaneous support of multiple compression algorithms e.g. CS-ACELP, LD-CELP, real-time Variable Bit Rate (rt-VBR), ATM Adaptation Layer type 2 (AAL2) for compressed voice telephony processing, simple upgradability to future compression algorithms, and VRE Variable Rate Encoding. ECI Telecom's DTX-600 Multi-Service circuit multiplication/concentrator can be easily upgraded to the ATX-600, by changing only three cards and downloading a new software package.

Tzvika Friedman, Vice President and General Manager of ECI Telecom's DCME-SBU said: "While ATM networks deliver efficient data services, service providers also need to preserve and enhance their ability to support toll quality telephony transmissions over the ATM infrastructure. The ATX-600 fulfills this need with a significant saving on bandwidth."

Commenting on the positioning of the ATX-600 in the rapidly evolving telecommunications landscape, Mr. Friedman added: "The ATX-600 will allow operators to smoothly migrate telephony traffic to ATM based infrastructure. The ATX-600 is a major contribution to the ongoing effort to converge voice and data into one network. The new ATX-600 provides an excellent bandwidth utilization tool for toll quality traffic over ATM networks and a solution to the IWF (Interworking Function) requirements for VoATM services."

The ATX-600 architecture includes a unique Call Agent entity, which operates as a fully functional SS no.7 signaling point, and enables seamless integration with existing PSTN switches and Intelligent Network (IN) infrastructure to provision telephony services.

The Call Agent serves as a distributed switching element, offering the best possible integration of these services onto the ATM transport layer. This, in turn, enables expedient migration from PSTN/ISDN-based networks to ATM networks.

The ATX-600 solution, built on MGC-MGW architecture with MGCP protocol, is in line with current and future standardization activities and with relevant industry forum activities.

The integrated Call Agent supports multiple SS no.7 and ISDN protocols, and includes important functions such as Interworking Call Control, Dynamic Call Routing, Signaling conversion and Generation of Call Detail Records (CDR). These functions enable the ATX-600 to provide distributed telephony networking capabilities over an ATM infrastructure.

ECI Telecom's new xTX family of Telephony Inter-Networking systems support adaptation of PSTN telephony to IP, ATM, and traditional TDM networks within the same platform. The xTX family links multi-service, toll-quality DTX compression technology, with state-of-the-art IP and ATM telephony processing and adaptation technology. The xTX product family is the world's first integrated ATM, IP and TDM telephony Inter-Networking solution with integrated toll-quality compression facilities.

Delivering a complete range of patented, carrier-class, telephony inter-networking and compression solutions, each member of the xTX Interworking Solutions family operates with the same hardware platform,\network management, maintenance, back-office systems, call agents and signaling gateway. Other members of the xTX Interworking solutions family are:

- DTX-600 & DTX-60 MultiService Compression platforms (based on the

DTX-240 and DTX-360 DCME series). The DTX-600 and DTX-60 (thin

route) offer up to 20:1 Toll Quality voice compression, as well

as the ability to efficiently transport FAX, modem, and native

data traffic and support end-to-end compression

- ITX-1000 and ITX-4000 Carrier Class IP Telephony platforms

deliver a fully functional IP voice solution for ITSPs and

large-scale commercial telephony service operators. These systems

support the latest telephony H.323 and MGCP protocols. Providing

carrier-class toll-quality voice services, the ITX-1000 and

ITX-4000 also support an advanced set IP telephony services like

PC to Phone, Conference Server, and Web Call Centers.

Field Proven

Many major networks throughout the world have already deployed ECI Telecom's xTX systems supporting live traffic. The full range of ECI Telecom's xTX family will be demonstrated at the ECI Telecom Stand at Telecom 99, Geneva. (Hall 1 Stand 1160).

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, maximize 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.

This press release and additional information about the Company, are now available on ECI TELECOM's site on the World Wide Web: http://www.ecitele.com.

If you would like to receive future news releases electronically, please forward your email address to [e-mail]

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.