ECI Telecom and VocalTec Demonstrate Carrier-Class, Interoperable, End-to-End IP Telephony System At Voice On the Net Conference.

PETAH TIKVA and HERZLIYA, Israel--(BUSINESS WIRE)--April 14, 1999--

ECI Telecom Ltd. (Nasdaq: ECILF) and VocalTec Communications Ltd. (Nasdaq: VOCLF) today are demonstrating a jointly developed advanced carrier-class platform for Internet protocol (IP) telephony at the Spring '99 Voice on the Net Conference in Las Vegas.

The co-branded product known at the respective companies as the ECI Telecom ITX-1000 and VocalTec Telephony Gateway(TM) Series 2000 - is part of a comprehensive, end-to-end solution. The solution includes the VocalTec Gatekeeper(TM), a sophisticated management system known at the respective companies as the ECI Telecom I-Manage 1000 and VocalTec Network Manager (TM), and a complete menu of VocalTec client services for phone-to-phone, PC-to-phone and fax-to-fax applications.

ECI's ITX-1000/VocalTec's Telephony Gateway Series 2000 can support up to 960 simultaneous voice, fax and voice-band data calls. It offers a range of capabilities for carrier-class operation, toll quality and quality of service including H.323 V.2 and iNow! compliance, call classification, echo cancellation and voice compression algorithms, internal redundancy, hot swappable cards and cluster operation. It is fully interoperable with the VocalTec Telephony Gateway(TM) Series 120 which is also offered under the ECI Telecom brand name as the ITX-120. ECI's ITX-1000/VocalTec's Telephony Gateway Series(TM) 2000 will be available for customer shipments in third quarter 1999, supporting up to 480 lines in the first phase in the first version with pricing dependent on system size and configuration.

"ECI Telecom has accumulated extensive knowledge and experience working with service providers, and with toll-quality telephony services and QoS," said Mr. Tzvika Friedman, Vice President and General Manager of ECI Telecom's Compression Technology Business Unit. "Now we have implemented this accumulated knowledge in our ITX-1000 systems."

"This system represents the culmination of development work that has brought together the standards-based IP software solutions of VocalTec with the carrier platform expertise of ECI," said Dr. Elon Ganor, chairman of VocalTec Communications. "This is also the product of a shared understanding of what carriers need for widescale deployment of IP communications services. Carriers not only require scalability, they must have comprehensive, end-to-end, interoperable solutions for provisioning, maintaining, supporting and introducing a range of new services. This system meets these carrier needs."

The new carrier grade gateways can be incorporated into the VocalTec Ensemble Architecture(TM). VocalTec's full system IP telephony solutions are based on the Ensemble Architecture, an open, scalable multi-service platform enabling carriers to target multiple services at different markets using the same network infrastructure. Employing the most advanced industry standards and with support for third party billing and management services, the Ensemble Architecture solution includes the VocalTec Network Manager and the VocalTec Gatekeeper which serves as the brains of the network for centralized control over the routing and management of inter- and intra-domain IP telephony traffic. The Ensemble Architecture also incorporates the VocalTec Telephony Gateway series that converts voice calls between circuit and packet switched networks.

The ITX-1000 is part of ECI Telecom's Comprehensive Telephony Networking Solution, including also the ATX-600 (VOATM), and the DTX-600 (DCME). The entire product group uses common signaling gateway and control and is controlled by the I-Manage application.

The I-Manage 1000 and the VocalTec Network Manager provide advanced IP services network management control, monitoring and configuration functions for the ITX-1000. The I-Manage 1000 combines central provisioning, alarm collection, statistics and local/remote gateway lines monitoring. The I-Manage 1000 also provides global control over network dialing plans.

This press release and additional information about ECI Telecom and VocalTec Communications are now available on the World Wide Web at http://www.ecitele.com and http://www.vocaltec.com.

About ECI Telecom

A provider of integrated network solutions, ECI Telecom designs, manufactures and markets end-to-end digital telecommunications solutions for today's new services and converging networks. ECI Telecom's advanced solutions create bandwidth, maximize revenues for network operators, expand capacity, improve performance, and enable new revenue producing services. Enhancing the capabilities of existing networks to support voice, data, video and multimedia services, ECI Telecom's equipment is supporting traffic in more than 300 service networks in over 145 countries throughout the world.

About VocalTec Communications

VocalTec develops and markets award-winning software that enables voice, fax and multimedia communications over packetized networks, including both private networks and the public Internet. VocalTec pioneered the commercial IP (Internet protocol) telephony industry in 1995 with the first commercial IP telephony solution. Since then, VocalTec has built one of the largest research and development teams dedicated solely to IP telephony, has one of the largest footprints of users in the carrier and consumer markets, and has played a leading role in the development of industry standards. VocalTec's technical expertise is a driver in moving the industry forward with its end-to-end, standards-compliant solutions for global multi-service deployments for all classes of carriers. For the latest company information, visit VocalTec on the World Wide Web at http://www.vocaltec.com.

NOTE: VocalTec, Internet Phone, Internet Phone Lite, Internet Phone Call Waiting, VocalTec Ensemble Architecture, VocalTec Ensemble Sound, VocalTec Telephony Gateway, Surf&Call, VocalTec Gatekeeper, VocalTec Network Manager and VocalTec Conference Server are trademarks or registered trademarks of VocalTec Communications Ltd. Other trademarks are the property of their respective holders.

Certain statements contained in this release may contain forward-looking information with respect to plans, projections or the future performance of VocalTec Communications, the occurrence of which involves certain risks and uncertainties, including, but not limited to, product and market acceptance risks, the impact of competitive pricing, competitive products, product development, commercialization and technological difficulties, and other risks detailed in the Company's reports filed from time to time with the Securities and Exchange Commission.