ECI Telecom Launches Carrier Ethernet Capabilities for its Flagship MSPP.

- Provides Operators with Quality-Assured Ethernet Services from Access to Core -

PETAH TIKVA, Israel -- ECI Telecom (NASDAQ: ECIL) today introduced a family of Carrier Ethernet line cards for its leading Multi-Service Provisioning Platform (MSPP) product line. These new, cost-effective modules enable operators to deliver a myriad of carrier-class Ethernet services and applications that include triple-play services, Business VPNs, wholesale applications and comprehensive solutions for mobile operators. Multiple carriers have already ordered the cards, which will be commercially available in early 2007.

This new offering, which is part of ECI's XDM[R] platform, underscores ECI's continued product innovation in Multi-Service transport solutions. ECI is leveraging its success with NG SDH/SONET, allowing operators to rapidly introduce revenue generating carrier-class Ethernet services. ECI was recently recognized by Gartner as a 'Leader' in its Next Generation SDH Equipment Magic Quadrant.

"ECI's XDM product family has earned the reputation as a trustworthy SDH platform," said Jason Marcheck, Principal Analyst, Optical Infrastructure, for Current Analysis. "By incorporating Ethernet services enablers, that interface with the BroadGate[R] access product line, ECI's XDM customers now benefit from the ability to gracefully transition their networks to offer important new Ethernet-based triple play services, while maintaining support for lucrative legacy SDH service offerings."

ECI's new carrier-class Ethernet capabilities provide operators with quality-assured Ethernet services from access to core. The new cards deliver carrier Ethernet services that address Layer 1 through eventually MPLS (Multi-Protocol Label Switching). Operators rely on MPLS to provide carrier-class Ethernet services with higher scalability, improved reliability and manageability.

"As SDH/SONET networks are widely deployed, operators aim to leverage their existing infrastructure to respond to the strong demand for premium Ethernet services," said Eyal Shaked, Executive Vice President and General Manager of ECI Telecom's Optical Networks Division. "We are enabling customers to easily offer these new services simply by installing ECI's data cards on their existing XDM platforms. This further strengthens our position in the MSPP market."

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.