Romania's Largest Cable Operator Selects ECI Telecom for Multi-Million Dollar Network Expansion; RCS & RDS' New Optical Network Will Connect across Eastern Europe

PETAH TIKVA, Israel--()--Aug. 8, 2006--ECI Telecom (NASDAQ:ECIL) announced today that it has signed a new multi-million dollar contract with the largest cable operator in Romania, RCS & RDS, for the upgrade and expansion of its optical network. The network upgrade will enable RCS & RDS to provide triple play and other broadband services across Eastern Europe and will enable access to the European Internet exchange located in Frankfurt. RCS & RDS' upgraded network will serve approximately 1.7 million subscribers.

Under the contract, ECI is upgrading the national network between all the major cities in Romania, creating a new regional network in Moldova and connecting Hungary to Romania. The network is based on 10G DWDM technology. Underscoring the efficiency of the deployment, ECI was able to deploy the main ring in less than two weeks.

ECI and RCS & RDS have been working together since 2001. ECI had previously enabled the customer to deploy an SDH network using its flagship XDM(R) optical platform. In the current project, RCS & RDS' backbone is being upgraded to add more capacity and to support 10G DWDM by adding a 10G LAN interface. This will make the network more cost-effective and easier to maintain, resulting in significant savings to its operating expenses. RCS & RDS has deployed ECI platforms worth over $10 million in recent years.

"To meet the rapidly growing requirements from our subscribers, we needed a trusted partner that we knew could respond quickly and customize the right solution for us," said Alexandru Oprea, General Manager of RCS & RDS. "With ECI, we are deploying a modern high capacity network that provides us with a flexible and cost-effective solution to generate new revenues and remain ahead of the competition."

"We place great value on our partnership with RCS & RDS and are delighted that the company has again chosen us for their network expansion," said Ido Gur, ECI Telecom's Executive Vice President of Global Sales and Marketing. "The ability to customize a triple-play network for the largest cable operator in Romania demonstrates the quality of our technology and our continued strength in tailoring cost effective solutions for our customers."

About RCS & RDS

One of the leaders of telecom segment providers on terrestrial infrastructures in this part of Europe, RCS & RDS provides multiple integrated telecommunication services on the same infrastructure: Cable and Satellite Television, Internet, Data Communication and Telephony.

RCS & RDS is the most important Romanian provider of telecommunication services, among the cable operators, registering 1.7 million subscribers for all the services provided, in Romania, Hungary and Slovakia. It registers 500.000 telephony users, 300.000 Internet subscribers and other 400.000 Digi TV clients in the region.

Its self-operated implemented network which relies on an optic fiber technology enables the provision of cable and satellite television services in a package-program system and on channels in Pay TV. The same optic fiber network RCS & RDS provides support for Internet Access and Data Communication Services, both designed to cover a large scale of communication needs, from Internet access and data transmission at Metropolitan and national level (VPN) to content and Data center services, providing to its clients the biggest connection outside the territory of Romania (n*10 Gbps), national coverage for more than 100 cities and access to the European nodes located in Frankfurt, London, Amsterdam, Paris, Milan and Budapest.

Enjoying such a powerful infrastructure, RCS & RDS also provides national and international fixed Telephony, delivered individually or as package, together with Internet access and cable television services.

Relying on its modern technology and self-operated network, RCS & RDS offers full integrated telecommunication solutions for any company, adjustable to any kind of business and packages of complete telecom services dedicated to residential users - Television, Internet and Fixed Telephony.

About ECI Telecom

ECI provides advanced telecommunications solutions to leading carriers and service providers worldwide. By translating a deep understanding of their needs into innovative, technologically advanced solutions, ECI enables its customers to increase the value of the infrastructure of their networks and reduce operating expenses. ECI's platforms provide carriers and service providers with carrier-grade solutions for easily introducing new revenue-generating services.

ECI provides innovative IP service delivery solutions to the converged telecom networks encompassing broadband access gateways, service edge routers, optical transport, NGN VoIP and multimedia applications and services. ECI maintains a global sales, marketing and customer support network, as well as a host of strategic channel relationships worldwide.

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, commercialization 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, International access code +972-3-926-6255
jay.kalish@ecitele.com
or
Media Relations:
Karen Gershon, International access code +972-3-926-8341
Karen.gershon@ecitele.com
or
PR@vantage
Fran Bosecker, +1-212-532-5740 ext. 400
fbosecker@pr-vantage.com

Contacts

ECI Telecom
Investor Relations:
Jay Kalish, International access code +972-3-926-6255
jay.kalish@ecitele.com
or
Media Relations:
Karen Gershon, International access code +972-3-926-8341
Karen.gershon@ecitele.com
or
PR@vantage
Fran Bosecker, +1-212-532-5740 ext. 400
fbosecker@pr-vantage.com