PETAH TIKVA, Israel -- ECI Telecom's (NASDAQ:ECIL) Optical Networking Division today announced the latest technology upgrades to its flagship XDM­ optical networking family with the release of Ethernet interface cards designed to transport Ethernet Layer 2 services over the SDH/SONET network. Through the integration of the EIS card or the EIS-M module in the XDM­ range, ECI enables service providers to cater for both Ethernet and SDH/SONET services, preserving current revenues while providing customers with new Ethernet services.

With the demand for Ethernet services witnessing an unprecedented growth, service providers are faced with the challenge of meeting these requirements for data service provisioning and connectivity to enable them to respond to the evolving needs of customers. Integration of the EIS card and EIS-M module within the XDM­ family offers sophisticated Layer 2 Ethernet capabilities, enabling the provision of Ethernet Virtual Private Line (EVPL) services and Ethernet Virtual Private LAN (EVPLN) services extending corporate LANs over the WAN.

Each EIS card carries Ethernet traffic via SDH/SONET trails, supporting multiple Ethernet ports connected to the customer's equipment, either directly or through a CLE (Customer Located Equipment). This functionality allows service providers to connect Ethernet ports to a shared network providing cost-effective full mesh connectivity at a low cost to customers. In addition to this improved network efficiency, services can be offered with QoS and SLA assurances, monitored and managed by network management. By effectively controlling the delivery of Ethernet services, providers can identify a clearer correlation between costs and revenues.

By deploying the EIS and the EIS-M, service providers can achieve a number of savings in both capital expenditure (CAPEX) and operational expenses (OPEX). Maintaining ECI's approach to the gradual migration to next generation technologies, both versions of the EIS offer notable CAPEX savings by enabling the delivery of Layer 2 Ethernet services over existing SDH/SONET lines, without the need to invest in new Ethernet technologies or damaging current revenues.

Another key feature is that through simple card insertion of the EIS, operational and management costs are significantly reduced. With a small footprint, low power consumption, and minimal installation, management and maintenance costs, the EIS extends particular advantages to service providers looking to offer a more competitive service portfolio.

"With these latest upgrades, ECI Telecom is continuing to provide versatile platforms that extend the life of the existing network but offer competitive new services that meet customer demands," commented Ido Gur, VP of sales and marketing for ECI's Optical Networking Division. "The converged service capabilities of the XDM­ make these technology advancements highly desirable to service providers looking to achieve further revenue opportunities and improve network efficiency, while reducing operational overheads."

The EIS card will become available in Q4, 2003, and deployment is planned within several existing customer networks, with the first live traffic expected in Q1, 2004.

In a separate release:

ECI Telecom's (NASDAQ:ECIL) Optical Networking Division today announced its new ATS module, an ATM card housed in the XDM­ multi-service optical platform. This latest upgrade to the XDM is designed to support cellular carriers in the migration towards 3G services by allowing a seamless transition from TDM based traffic to ATM, without requiring massive investment in RAN (Radio Access Network) infrastructure.

The XDM is a hybrid platform that converges intelligent metro DWDM optical networking capabilities, multiple SDH/SONET rings, Digital Cross Connects (DXC), carrier-class Gigabit Ethernet and on-demand network provisioning within a single device. It will now include, through simple in-service card insertion, ATM aggregation of large numbers of E1 traffic streams. One of its primary functions will be to streamline the transmission of traffic between Node Bs and RNCs (Radio Network Controller) at the access layer within cellular networks.

The traditional approach to achieving traffic efficiency and bandwidth utilisation at the RAN, as well as the conversion to un-channelled STM-1 I/F (prior to connection to the RNC), was through the introduction of external ATM switches. The result was unnecessary expenditure in new equipment and high investments in management integration. The ATM-enabled XDM promises seamless traffic aggregation between Node Bs and RNCs, together with greatly increased bandwidth capabilities, which is particularly crucial in situations where cellular operators are leasing capacity.

"The ATM-enabled XDM is one of the first such systems in the world to be able to combine SDH and ATM transmissions within a single platform," stated Ido Gur, VP of sales and marketing for ECI Telecom's Optical Networking Division. "By offering integration of SDH and ATM in the same hardware, fully optimised for 3G access, the ATS Card is not only more economical than any other solution on the market today, but provides flexibility and scalability for future expansion in network coverage and capacity."

"The cellular communications industry has always been a key market for us, and in the current climate, our aim is to provide a solution that offers reduced complexity, lowers leased-line tariffs and brings unrivalled cost flexibility for the cellular operators. Network planning should not be viewed as expenditure, but rather as a means to generating revenues, and as such, our designs accommodate for the demands of all users, whilst maximising ROI. In other words, our goal is to provide optimum design at minimum cost," concluded Ido.

ECI Telecom's Optical Networking Division anticipates that cellular carriers will be able to achieve ROI within the six months to one-year time frame through strategic implementation of the new ATM-enabled XDM optical platform. This will hold strong appeal for newcomers to 3G in particular, as it will reduce costs associated with introducing new services, both in terms of initial capital expenditure and ongoing operational costs.

ECI Telecom Ltd.