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ECI Telecom Chosen to Supply Its XDM MSPP -Multi-Service Provisioning Platform- for Ukrainian National Network

Posted on: Monday, 28 June 2004, 06:00 CDT

New US $16 Million Order for ECI's XDM(R) Follows Successful Completion of Initial $7M order

ECI Telecom (NASDAQ:ECIL) announced today that Ukrtelecom (Ukrainian State Telecommunication Enterprise), the leading national telecommunications operator in the Ukraine, has again chosen its XDM(R) MSPP (multi-service provisioning platform) for its national multiservice optical backbone network, covering major cities and international gateways. The new order follows the successful installation of a $7M order for Kiev's metropolitan area network (MAN) in which ECI's XDM equipment, deployed in the shortest time, is now handling live traffic across 50 sites throughout the Kiev region.

According to the new contract, ECI Telecom will deploy and support XDM platforms in over 50 sites nationwide, to create a national multi-service transport backbone based on DWDM and SDH technologies and next generation Ethernet capabilities.

Ukrtelecom's decision to deploy the XDM(R) MSPP within its network was driven by its desire to migrate seamlessly from a purely SDH backbone to a universal transport facility. Ukrtelecom is moving ahead to build a scaleable, robust and universal transmission network that provides a transparent flow for voice and packet communications.

"We are pleased to have been chosen once again by Ukrtelecom. This contract is of strategic importance and represents ECI's foothold in the Central and Eastern European telecoms market," commented Irena Lisak, President of ECI Telecom's Russia and Former Soviet Union Business Unit. "Ukrtelecom is well-established as the national telecommunications largest incumbent retaining a very significant market share. The new infrastructure based on our XDM MSPP enables the company to maintain this status and generate new revenues in a growing marketplace."

About XDM(R)

The XDM MSPP converges intelligent optical networking capabilities with advanced data functionality including ATM and Ethernet Layer 2 over SDH/SONET, CWDM and DWDM. Offering a modular approach to building next generation services, the XDM enables carriers to maximise investment in existing infrastructure whilst generating new revenue opportunities.

About Ukratelecom

Ukrtelecom was created at the end of 1993 (till January 5, 2000, it was named the Ukrainian State Telecommunication Enterprise "Ukrtelecom"). Nowadays, Ukrtelecom incorporates 30 affiliates including 27 regional departments. The Company holds vertical organisational structures on operation of primary communication network and local communication network as well as those on installation of radio, customers servicing, providing a number of services etc. Ukrtelecom is a cofounder of a number of joint ventures that operate in the Ukrainian telecommunications market. They include: Utel, Infocom, Ukrainian Mobile Communication, Elsacom - Ukraine, Telesystems of Ukraine and Telecominvest. For further information, please visit www.utrtelecom.ua.

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.

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