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T-Com Awards ECI Telecom Two-Year xDSL Equipment Contract; Tier 1 Carrier Relies on ECI's platform to Expand DSL Lines and Provide New Services.

Business Editors/High-Tech Writers

CeBIT 2004

PETAH TIKVA, Israel--(BUSINESS WIRE)--March 17, 2004

ECI Telecom (NASDAQ:ECIL) announced today that T-Com, Deutsche Telekom's national fixedline division, has extended its long-term contract for the deployment of ECI's broadband access platform for an additional two years. Currently, T-Com has over four million T-DSL subscriber lines, with plans to more than double that number to at least 10 million T-DSL users by 2007. The carrier plans to use ECI's latest fourth generation Hi-FOCuS(TM) 4 multi-service access gateway (MSAG) to help reach this goal.

The two-year contract was awarded following an existing long-term partnership that began over five years ago. During that time, ECI has provided its reliable and scalable xDSL equipment to existing subscriber lines as well as the latest generation of DSLAM products to provide a smooth migration process for the carrier.

The Hi-FOCuS 4 provides T-Com with options that go beyond traditional high-speed Internet to offer video and data In particular, the new platform features live video multicast service capabilities. For the new contract extension, T-Com will deploy ECI's next generation ADSL capabilities including extended reach DSL and G.SHDSL, which offer compelling solutions for small to medium enterprise customers.

"We are pleased to see our long term partnership with T-Com expanding," said Pinny Chaviv, Executive Vice President and General Manager of ECI Telecom's Broadband Access Division. "Our Hi-FOCuS 4 platform, working with full backward compatibility to T-Com's installed base, provides the flexibility to introduce new services beyond fast Internet to include video, data and voice which create new competitive opportunities that will attract new revenue streams."

ECI's Hi-FOCuS 4 platform is a high-density, high-end access gateway that handles large-scale deployments with advanced functionalities including multi-level multicast, integrated voice gateway, and FTTx. This field proven platform reduces carriers' CAPEX by allowing them to provide simultaneous access for triple play and next generation applications using their existing infrastructure. The modular system with interchangeable line-cards meets carrier grade requirements for density, and QoS provisioning.

"This renewed contract clearly shows that we have met T-Com's expectations for a reliable solution that can manage a mass market rollout," said Jehonatan Neuberger, ECI Telecom's General Manager of Continental European Region. "It is a vote of confidence for our broadband products and our ability to meet the stringent demands of a major carrier."

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.

Hi-FOCuS is a registered trademark of ECI
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Publication:Business Wire
Date:Mar 17, 2004
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