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ECI Telecom Selected as Sole Supplier by BT for FTTP Trial


BASINGSTOKE, UK - 10th June 2004 - ECI Telecom (NASDAQ:ECIL) announced today an agreement to deploy Fibre To The Premise (FTTP) equipment as part of BT's (British Telecom) flagship 21st Century Network initiative. This is one of the first 21st Century Network initiatives that BT will be deploying in the UK network.

ECI was selected by BT as sole supplier to provide the trial as it was able to deliver the technology and 21st Century services ahead of the market.

The trial will include 3,000 homes with active connections to more than 1,500 residential users and in excess of 100 business users.

ECI and BT will go live on the trial in October 2004 with voice and data services carried over BT's existing digital exchanges.

ECI will deploy the trial using the highly versatile Hi-FOCuS 4™ platform developed by its Broadband Access Division. The Hi-FOCuS 4™ platform is a full size Access Gateway, offering high density broadband connections, including all flavours of DSL and Fibre, from a single shelf, suitable for mass deployments to central offices or street cabinets.

BT's Ian Lawrence, Head of Access Bearer & Technology said, "We are pleased to be working with ECI for this important trial; which will enable us to really understand the costs and benefits of deploying fibre, rather than copper, to homes and businesses in Greenfield sites or new build developments".

ECI was chosen as the best supplier following a strongly contested ITT process based on BT's rigorous criteria. Among the considerations were ECI's ability to deliver voice, video and data services from a single highly flexible platform, ECI's ability to meet BT's rigorous time to market requirements, ECI's strategic fit with BT's future 21 Century network architecture and value for money.

Ben Thomas, Managing Director, ECI (UK) said, "We are proud and delighted to showcase this solution on one of the biggest stages in the global market and to demonstrate how this technology translates into a superb experience for BT's customers".

ECI has been a major supplier to BT over the last 20 years providing solutions from both Broadband Access as well as Optical Divisions. Current contracts include broadband products such as CWSS (Copper Wideband Serving Section) providing HDSL services into BT Wholesale and BT Retail. In addition, ECI has supplied 100% of BT Global Services' voice compression (DCME) deployment and the Global Managed Platform with ECI's Cross Connect technology.

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.