ECI Telecom receives $3 Million Optical Equipment Order from the Finnish Defense Forces; ECI supplies SDH and optical solutions to the FDF

PETAH TIKVA, Israel--()--Feb. 16, 2005--ECI Telecom (NASDAQ:ECIL) announced a new $3 million optical equipment order from the Finnish Defense Forces (FDF). Over the past two years, ECI has supplied FDF with over $18 million of its next-generation XDM(R) optical platform equipment. This year, ECI will also provide its LightSoft(R) network management system to allow secure, reliable and fully resilient management backup.

The FDF's state-of-the-art network has XDMs strategically placed around Finland to provide fast and reliable communications and local response for all areas of the Finnish army, including the ground forces, naval services and the air force.

ECI is also a core member of the DCN Group, a co-sponsored initiative of FDF and DCN that provides a unique mobile interface network to transmit voice, data, and images from anywhere, for crisis management and special events. This network interface can be set up in just a few hours. Covering a wide area, it enables fixed and mobile networks to be connected to an existing network for transmission. Other DCN Group members include Ascom Finland ,DrakaFinland, Eltel Networks, Ericsson, Fintelnet, and Nokian Metallirakenne. These Turn-Key unique systems are being marketed to the military throughout Europe.

"This new order from the FDF for additional equipment further demonstrates that ECI's solutions offer the extreme reliability required for the national defense communications backbone," said Doron Inbar, President and CEO of ECI Telecom. "We are pleased that we continue to earn FDF's trust and supply our state-of-the-art XDM optical platform for their mission-critical network."

ECI's XDM combines intelligent optical networking capabilities with advanced data functionality including Ethernet Layer 2, SDH/SONET, CWDM and DWDM. The XDM enables the FDF to expand its network with a scaleable, easily managed, cost-effective solution based on a unique single architecture.

The XDM is managed by LightSoft, ECI's state-of-the-art network management system, which has a unique multi-technology view. LightSoft automatically maps managed elements onto separate technology layers - SONET/SDH, optics and data - and can be used with ECI Management Site Redundancy techniques to ensure the entire network is managed under all conditions.

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.

Contacts

ECI Telecom
Investor Relations:
Jay Kalish, +972-3-926-6255
jay.kalish@ecitele.com
or
Media Relations:
Karen Gershon, +972-3-926-8341
karen.gershon@ecitele.com
or
PR@vantage
Fran Bosecker, +1-212-532-5612
fbosecker@pr-vantage.com

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Contacts

ECI Telecom
Investor Relations:
Jay Kalish, +972-3-926-6255
jay.kalish@ecitele.com
or
Media Relations:
Karen Gershon, +972-3-926-8341
karen.gershon@ecitele.com
or
PR@vantage
Fran Bosecker, +1-212-532-5612
fbosecker@pr-vantage.com