Tata Teleservices to Deploy ECI Telecom's XDM Optical Platforms.

Business Editors/High-Tech Writers

PETAH TIKVA, Israel--(BUSINESS WIRE)--Dec. 4, 2003

ECI's Optical Networking Platforms to Be Deployed as Cornerstone

In CDMA Mobile Network; Contract Valued at Approximately USD 20

Million

ECI Telecom (NASDAQ:ECIL) today announced that Tata Teleservices Limited, a member of the Tata Group and one of India's leading CDMA mobile carriers, will deploy ECI's MultiService Provisioning Platforms (MSPPs) within its optical transmission access and backbone network.

For the first phase of the project, ECI will supply hundreds of XDM-100, XDM-500, XDM-1000 and BroadGate platforms to TTSL. ECI's SDH/DWDM optical network solutions will carry live traffic for Tata Teleservices across 6 circles including Maharashtra/Mumbai, Delhi, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu. Further network growth and expansion of the circles are expected in the near future.

India is currently one of the highest-growth markets in the world with an increasing telecom infrastructure and a rapidly expanding cellular subscriber base. Tata Teleservices' investment in its CDMA network reflects the company's mission to capture this burgeoning market and become the leading carrier of advanced wireless services throughout the region.

"It is central to the development of our business that we continue to expand our network infrastructure to meet the growing demand for cellular services in the Indian marketplace," commented S.Ramakrishnan, Managing Director of Tata Teleservices. "Our partnership with ECI will create a state-of-the-art CDMA network solution that will enable us to meet the future service requirements of our customers. Not only does ECI Telecom's XDM(R) MSPP provide us with a field-proven mature solution that is both flexible and cost-effective, but ECI has also committed to an extremely aggressive schedule for deploying hundreds of XDMs in a matter of weeks, thereby enabling us to generate new revenues in an efficient timescale."

ECI Telecom's XDM(R) will enable Tata Teleservices to expand and maintain its high quality CDMA network for providing voice, data and video services. The XDM MSPP converges intelligent optical networking capabilities with advanced data functionality including ATM and Ethernet Layer 2 over SDH/SONET and DWDM. By integrating multiple network elements within one unified platform, the XDM MSPP replaces the need for investment in additional equipment as the network evolves. This cost-effective, scalable approach provides Tata Teleservices with the flexibility to upgrade its network according to future demand. This unique "Build As You Grow(TM)" characteristic was instrumental in its selection over competitive offerings.

In addition to the XDM, ECI Telecom's BroadGate MSPP family offers Tata Teleservices a metro access solution which extends the services of the XDM to the access network. BroadGate answers Tata Teleservices' growing need for cost-effective and reliable Ethernet connectivity in the metro access market.

"With this project we are taking our commitment in the Indian marketplace to the next level. Our positive focus in this flourishing arena is reflected by the recent opening of our offices in Mumbai and Delhi. As we continue to accelerate the number of XDM installations throughout the region, we are proud to be able to offer full sales, service and support to all our customers," commented Ido Gur, VP sales and marketing of ECI's Optical Networks Division. "We believe this dedication to the Indian market is recognised by our customers and we are delighted to be appointed as supplier of SDH and MSPP networking solutions for Tata Teleservices. We place great value in this partnership and look forward to continuing to work together in the future.

About Tata Teleservices Limited

The TATA Group, of which Tata Teleservices is a part, is India's most trusted and one of the largest business conglomerates. With 93 operating companies and a turnover of more than USD 12 billion, it accounts for more than six percent of India's exports and is trusted by more than two million shareholders. Promoted by TATA Sons, TATA Power and TATA Industries, Tata Teleservices is a licensed private operator that offers mobile and fixed telephony services including voice and data products. Currently operating in 6 states which comprise 56 percent of India's subscriber base and 65 percent of the country's telecom revenues i.e. Delhi, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Gujarat, the company has a customer base of over 1.3 million. With a planned nationwide footprint across the country, Tata Teleservices has also applied for licenses for 11 more circles, which include Punjab, Haryana, UP (West), Kerala, West Bengal, Rajasthan, Madhya Pradesh, Bihar, Orissa, Himachal Pradesh and Uttar Pradesh (East).

About ECI Telecom

ECI 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. ECI's platforms enable carriers and service providers to easily introduce new revenue-generating services. ECI has pioneered key technologies including voice compression, SDH, DSL, and has enabled the establishment of global networks. ECI specialises in metro optical networks, broadband access, 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, commercialisation and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.