ECI Telecom Selected by Major European Carrier as Sole Supplier of Pair Gain Systems -- Framework Agreement Could Reach US $42 million.

PETAH TIKVA, Israel--(BUSINESS WIRE)--Oct. 5, 1999--

ECI Telecom Ltd. (NASDAQ/NM symbol: ECIL) announced today that it has been chosen by a major European Carrier as sole supplier of access pair gain systems.

The estimated value of the new 3 year contract is $30 million. With the two year extension option, the contract value could reach $42 million. ECI Telecom's PCM2 and PCM11 copper enhancement systems will be deployed to expand and renew existing telecommunications infrastructure, delivering second line services and enabling immediate subscriber connections.

ECI Telecom has already started to deliver its pair gain systems in the 3rd quarter of this year, under the new contract.

"ECI Telecom is a leading supplier of copper enhancement solutions in Europe. We are proud once again to be selected as a sole supplier of these solutions, enabling service providers to generate new service revenues with the immediate deployment of these systems. We have been working together with many service providers to offer special features that suit their network needs, such as special line testing capabilities,", said David Rubner, ECI Telecom's President and CEO.

ECI Telecom's pair gain equipment uses xDSL technology to convert copper pair subscriber lines into digital pipes capable of transmitting digital information at high speeds and enabling service providers to exploit the local loop by multiplying the subscriber capacity by 2, 4 and 11 respectively.

Major installations of ECI Telecom's pair gain equipment have been deployed throughout Europe and the USA, delivering services to over 4 million subscribers worldwide.

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.