SPTC Selects InnoWave to Establish Fixed Wireless Access Network in Swaziland.

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--Feb. 25, 2002

InnoWave ECI Wireless Systems Ltd. (InnoWave), a global leader of Fixed Wireless Access (FWA) solutions, and an ECI Telecom Ltd. company (NASDAQ/NM symbol: ECIL) today announced that it won a contract to supply the MultiGain Wireless system (MGW) to Swaziland Posts and Telecommunications Corporation (SPTC).

According to the contract with Innowave's regional partner Global Telecom / Telecontract, the MGW installations will enable SPTC to service 11,000 subscribers. The wireless access system will operate in the 3.5 MHz frequency band, and will cover mountainous areas surrounding the capital, Mbabane, including Manzini, Matsapha, Lobamba and Ngwenya. InnoWave's MGW system will significantly improve Swaziland's existing communications infrastructure enabling continuous communications between various areas of the country.

InnoWave will provide a turnkey solution, through its regional distribution partner distributor, Global Telecom / Telecontract, including project planning, training, and installation of sites and subscriber unit terminals as well as management and technical support. During the first phase of the contract, targeted for completion by March 2002, 9 base stations will be deployed, and initial 2000 lines will be installed and operated.

Residential and business subscribers will benefit from advanced telephone communications including: toll quality voice, high-speed Voice Band Data (VBD) and ISDN-BRI. The MGW is a FWA system that utilizes radio links instead of copper telephone lines and it will provide the Last Mile Connection between the local subscribers and SPTC's main network.

"We are eager to deploy InnoWave's MGW system and to work with their competent partner, Global Telecom," states Managing Director of SPTC, Mr. Vusi N. Mkhumane, "The latest successful installations in the area are impressive. With InnoWave's MGW system, we will further our country's business potential by providing reliable communication services to our capital and its surrounding industrial areas, which in many cases, were previously unconnected to the outside world. "

Hezi Lapid, President and CEO of InnoWave, said: "We are excited about introducing our FWA solutions to Swaziland. The MGW system is well suited to SPTC's business, technological and topographical needs, and we envision it as an excellent basis for Swaziland's growing communications infrastructure. Furthermore, we are delighted to strengthen our foothold in Africa."

About SPTC:

Swaziland Post and Communication is the sole provider of Fixed Access Communication Networks in Swaziland. "The Mountain Kingdom" has a population of 2 million with agriculture, primarily sugar cane estates, as their main source of income. Despite their small scale, the SPTC goal is to provide Swaziland with a robust telecommunications network, "one of the best in the continent", with V5.2 switch interface technology facilitating fast and efficient telecommunications.

About InnoWave:

InnoWave ECI Wireless Systems Ltd. (InnoWave), a fully owned subsidiary of ECI Telecom Ltd., is a global leader in the design and deployment of innovative and cost effective Fixed Wireless Access solutions. Over 55 telecom operators worldwide have successfully deployed InnoWave's systems to deliver high quality and reliable voice and data services to more than 650,000 subscribers.

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 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.

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, the ability to complete transactions with investors, 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.