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 FT. LAUDERDALE, Fla., Sept. 23 /PRNewswire/ -- ECI TELECOM LTD. (NASDAQ-NMS: ECILF) and Telematics International Inc. (NASDAQ-NMS: TMAX) jointly announced today that they have reached an agreement in principle to merge the two companies. The merger will be effected by an allotment of new shares by ECI TELECOM to all shareholders of Telematics who will receive 0.33 ordinary shares of ECI TELECOM for each share of common stock of Telematics. The transaction is subject to entering into a definitive agreement and approval by the boards of directors of both companies at meetings scheduled for the week of Oct. 3. Following the transaction, it is anticipated that two representatives of Telematics will join the ECI TELECOM board and Telematics shareholders will own approximately 15.7 percent of ECI TELECOM. Completion of the transaction will be subject to customary conditions, including approval by a majority of the shareholders of Telematics and regulatory approvals.
 David Rubner, president and chief executive officer of ECI TELECOM, and William A. Hightower, president and chief executive officer of Telematics, said that the purpose of the merger is to create an important new entity able to provide both major carriers and private corporate users with comprehensive solutions for their voice and data communication networks.
 ECI TELECOM designs, develops, manufactures and markets telecommunications systems employing digital speech processing, switching technologies and ISDN (Integrated Services Digital Network) compatible technologies. These systems are designed to increase the conversation, data and facsimile carrying capacity of telecommunications networks operated by domestic and international long-distance carriers, PTTs and private line users. Synchronous Digital Hierarchy (SDH) products designed for use on fiber optic networks employ the new high- speed international SDH network architecture. Headquartered in Petah Tikva, Israel, ECI TELECOM has 1,100 employees worldwide, in facilities at two locations in Israel; Orlando, Fla.; Frankfurt and Teltow, Germany; as well as London and Hong Kong.
 Telematics International designs, manufactures, sells and supports a complete line of wide area networking products designed or voice and data communications applications and networks worldwide. This includes a full range of programmable packet switching systems, frame relay systems, access communications processors and TI/EI networking multiplexes. Telematics, headquartered in Fort Lauderdale, has approximately 380 employees worldwide, with facilities in five U.S. locations; Basingstoke, England; Frankfurt, Germany and Paris.
 -0- 9/23/93
 /CONTACT: Lawrence Cattell, senior vice president, marketing of Telematics International, Inc., 305-772-3070, or Louis Tharp, president of Clay Marketing & Public Relations, 914-348-0400/

CO: ECI TELECOM LTD.; Telematics International Inc. ST: Florida IN: TLS SU: TNM

WB-SM -- NY093 -- 0581 09/23/93 17:56 EDT
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Publication:PR Newswire
Date:Sep 23, 1993

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