Telia, Sweden, Extends ECI Telecom's HDSL Supplier Contract; New Framework Agreement Valued at US$13 million.

PETAH TIKVA, Israel--(BUSINESS WIRE)--Sept. 15, 1998--ECI Telecom Ltd. (NASDAQ/NM symbol:ECILF) announced today that it has been chosen by Telia, Sweden, as the supplier of HDSL solutions.

The new agreement, valid until the end of the year 2000, and valued at US $13 million, was awarded to ECI Telecom following the successful deployment of a prior HDSL contract awarded to ECI Telecom by Telia in 1995.

Telia will continue to deploy ECI Telecom's ExLine2 systems based on HDSL technology, to deliver 2 Mbit/s voice, fax and data services for leased line applications over the copper loop infrastructure, throughout Sweden.

ExLine2 (Extended Line 2Mbit/s) is ECI Telecom's HDSL Access Network transmission system that provides 2Mbit/s services over existing unconditioned copper pairs. The ExLine2 system uses the High bit-rate Digital Subscriber Line (HDSL) technique and fully complies with ITU-T HDSL recommendation ETR-152.

Mr. Uri Kashti, ECI Telecom's Corporate Vice President and General Manager for Access Solutions said: "This contract further endorses ECI Telecom's position as a leading supplier of copper enhancement solutions in the European market. We look forward to a continued partnership with Telia."

ECI Telecom has already started to ship HDSL systems to Telia under the new contract.

Telia is the leading supplier of telecom-based information services in the Nordic/Baltic region. At the same time, "seamless" pan-European and global services are being realized through powerful alliances and partnerships in Europe and around the world. Telia's annual turnover in 1997 reached 46,444 MSEK and the number of employees amounted to approximately 32,500.

A provider of integrated network solutions, ECI Telecom designs, develops, manufactures and markets digital telecommunications and data transmission systems, enabling network operators to deliver cost-effective services. ECI Telecom's systems provide capacity expansion, flexibility and management functions to more effectively utilize existing networks for voice, data, wide area and integrated networks.

This press release and additional information about the Company, is now available on ECI TELECOM's site on the World Wide Web: http://www.ecitele.com.

Certain statements contained in this release, may contain forward-looking information with respect to plans, projections or future performance of the Company, the occurrence of which involves 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.

CONTACT: ECI Telecom Ltd.,Petah Tikva

Doron Inbar

Tel: [phone]

Fax: [phone]

or

ECI Telecom Ltd., Fort Lauderdale

Leo Hinkley

Tel: [phone]

email: [e-mail]

or

Telia Network Services

Anna-Carin Uddenberg

Press Officer

Tel: [phone]

Fax: [phone]