Lightscape Networks Launches in U.S. to Provide Next Generation Integrated Optical Solution With "Build-as-you-grow" Architecture From Metro Edge to Core.

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--March 15, 2001

10 Years of Worldwide Experience Now Leveraged

for Success in North American Marketplace

Lightscape Networks, a member of the ECI Telecom group (ECI Telecom: NASDAQ:ECIL), today announced its U.S. launch as a leading provider of intelligent, next-generation optical solutions for metro and regional networks. With more than 10 years of worldwide experience as the Optical Networks division of ECI Telecom, Lightscape Networks provides highly scalable products that combine multi-layer optical networking with instant service provisioning and on-demand network scaling capabilities to facilitate the rapid network growth required by customers.

Today's launch also marks the commencement of North American operations, as the new company leverages its successful track record in Europe, Latin America and Asia Pacific. Customer installations in more than 45 countries include some of the world's major carriers and emerging service providers, such as Deutsche Telekom, NTL, D2 Vodafone, Telemach, Hansol, Banverket and China Telecom. Sales of its complete family of products in 2000 totaled $259.6 million.

"We are excited to launch a new company with a field-proven, revenue-generating next-generation product portfolio and a wealth of customer experience," said Eran Dariel, CEO of Lightscape Networks. "Lightscape Networks comes out of the gate with a strong, stable lead that allows us to compete effectively with larger traditional optical networking providers."

North American Metro Market: $9.7 Billion Opportunity in 2001 (based on RHK forecast)

"It's pretty clear that the demand for bandwidth continues un-abated," said Ron Kline, Sr. Analyst at RHK Inc. "Carriers are seeking reliable, high capacity, scaleable bandwidth that can be provisioned on demand, as opposed to the weeks it currently takes to provision legacy equipment."

Service providers are facing several problems in current metro networks. Networks built up from multiple dedicated network elements at each node significantly increase the cost of network ownership and service provisioning cycle time. In addition, the lack of on-demand service creation capability adversely affects carriers' revenue. Current metro solutions are not scalable to support bandwidth and service demand, particularly for a full suite of DWDM optical networking capabilities.

Based on industry analyst firm RHK's market forecast, the metro DWDM optical networking equipment market in North America is expected to grow 45 percent annually through 2004.

XDM(TM)- Intelligent "Build-As-You-Grow" Optical Solution For Metro and Regional Networks in a Single Platform Architecture

Lightscape Networks' XDM(TM) combines fully integrated DWDM optical networking with data protocols, multiple SONET/SDH rings, distributed Digital Cross-Connect System (DCS) and instant provisioning in a single hybrid optical network element. This integrated approach consolidates multiple network elements and reduces network and provisioning costs, while offering new on-demand revenue generating services. Flexible topology and rings-to-mesh migration allows carriers to build their networks according to bandwidth and service demand, helping them optimize capital outflow and increase business profitability.

"The XDM provides a unique integration of DWDM optical networking for next-generation metro and regional requirements," said Chris Nicoll, vice president of Current Analysis. "Lightscape Networks is providing a system that scales to build metro edge to core networks within a single managed solution, thus alleviating one of the most significant challenges facing metro carriers today."

XDM's unsurpassed level of integration and single architecture scalability therefore enable established and emerging service providers to easily and cost effectively keep up with rapid, unpredictable network growth.

About Lightscape Networks

Lightscape Networks' solutions are deployed in 45 countries worldwide and serve both major carriers and emerging service providers at all stages of optical network implementation. With North American headquarters in Herndon, Virginia, Lightscape Networks is a wholly owned subsidiary of ECI Telecom Ltd. For more information on Lightscape Networks, please visit www.lightscapenetworks.com.

About ECI Telecom

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 networking operators, expand capacity, improve performance and enable new revenue-producing services. In doing so, they enhance the capablities 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.

Note: This press release and additional information about the Company, are available on ECI Telecom's site: 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, complete transactions with investors, the ultimate success of the de-merger process, 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.