ECI Telecom and Momentum Management Announce Spin-Off of Celtro Inc.Business Editors/High-Tech Writers PETACH TIKVA, Israel--(BUSINESS WIRE)--Sept. 10, 2003 ECI Telecom ECI Telecom Ltd NASDAQ: ECIL, is a telecommunication equipment manufacturer based in Petah Tikva, Israel. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ECIL ECIL Electronics Corporation of India Limited ) and Momentum Management jointly announced today the spin-off of ECI ECI Employment Cost Index ECI Election Commission(er) of India ECI Enterprise Content Integration ECI Early Childhood Intervention ECI Environmental Change Institute Telecom's business unit, ECI-celtro, a world leader in transmission solution for the backhaul mobile networks, to create an independent and privately-held company to be known as Celtro Inc. Momentum Management, a venture group specializing in the acceleration to profitability of technology companies, led the spin-off and successfully completed a round of investment from leading investors, including Genesis Partners, Cedar Fund and Discount Capital Markets. ECI Telecom will retain minority stake in the company. Celtro Inc., with its innovative technology and highly skilled team develops and has commercially deployed backhaul network transmission optimization systems for GSM operators. The patented systems boost 2G and 2.5G technologies and ensure a smooth, efficient, low risk and low cost migration path to future cellular transmission technologies. "Our decision to spin off ECI-celtro is another step in implementing our strategy of focusing on our core businesses," said Doron Inbar, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ECI Telecom. "As an independent company, we believe that Celtro is well positioned to exploit growth opportunities and to become a leader in this vital emerging segment of the telecom market. ECI is pleased to maintain its presence in this important new market segment and will continue to assist in Celtro's development." Dr. Eyal Kishon, Managing Partner at Genesis said, "As longstanding investors in the telecom market, Gal Israely of Cedar and myself are excited about this new company and its future potential. We envision Celtro becoming a world leader in optimization solutions for cellular operators based on the strength of its core technology and the skills of its R&D team." Celtro's team and core technology are descended directly from ECI's former NGTS NGTS Next Generation Threat System (aircrew training devices) NGTS New Generation Trading System (Shanghai Stock Exchange) NGTS Next Generation Test System (Hekimian) Division, world leader in digital circuit multiplication equipment Digital Circuit Multiplication Equipment (DCME) is a type of voice compression equipment that is installed at either end of a long-distance link (typically satellite or submarine). The main characteristics of DCME are defined in ITU-T recommendation G.763. , which recently merged with NexVerse(TM) Networks to form Veraz Networks. The Division developed and marketed the QuadCoder, an all-traffic compression system for the cellular network that is installed in live traffic systems worldwide. Celtro, with its patented technologies and extensive R&D, has succeeded in bringing this know-how to cellular operators, delivering new products that enhance and optimize their expanding cellular infrastructure. Celtro's DynaMate (Dynamic Mobile Access Transmission Expander) product line is a unique, cost-efficient, feature scalable optimization solution for the backhaul of cellular networks. It achieves transmission optimization by means of an innovative, patented method of statistical multiplexing See statistical multiplexor. . It yields an increase of more than 220% in voice and data traffic over existing links, regardless of the transmission infrastructure. Finally, DynaMate delivers more than 50% savings in network costs and falls well within the industry's aggressive ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). requirements. Ron Zor, Managing Partner, Momentum Management, will assume the role of Chairman and CEO of the new company. "We didn't need much inducement to invest in the new company," he said. "ECI Telecom is world renowned and a market leader in compression technologies. Continuing this tradition, Celtro has added on a layer of unique technology that represents a perfect fit between the product and the cellular market of today. The cellular market is still one of the fastest growing segments of the telecom industry, and Celtro's solution fulfills a vital industry need -- network optimization." About Celtro Inc. Celtro Inc. (www.celtro.com) develops, manufactures and markets innovative technologies designed to help cellular operators maximize utilization of their backhaul transmission infrastructure. Celtro has developed the DynaMate, a new product line of backhaul network optimization systems for GSM networks. It enables cellular operators to significantly increase the number of subscribers and to decrease backhaul transmission infrastructure resources. About Momentum Management Momentum Management is a venture management group, focused on financing technology companies positioned in high-growth market segments. Momentum's aim is to build a company's value by assisting it to reach profitability while enhancing its technology and product offering. With an average of over twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. in the field, the Momentum Management team has extensive technological and business expertise, as well as a thorough understanding of market trends. The team consists of four partners and a marketing executive, with Discount Capital Markets, acting as financial sponsor. About ECI Telecom ECI Telecom provides advanced, telecommunications solutions to leading carriers and service providers, worldwide. By translating a deep understanding of its customers' needs into innovative, technologically excellent solutions, ECI enables its customers to increase the value of their networks and reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . ECI's platforms enable carriers and service providers to easily introduce new revenue-generating services. ECI has pioneered key technologies including voice compression Same as speech compression. , SDH (Synchronous Digital Hierarchy) The European counterpart to SONET. See SONET. SDH - Synchronous Digital Hierarchy , DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary , and has enabled the establishment of global networks. ECI specializes in metro optical networks, broadband access See broadband and wireless broadband. , bandwidth management and carrier-class VoIP solutions. 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. Celtro and DynaMate are trademarks of Celtro Inc. NexVerse is a trademark of Veraz Networks, Inc. |
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