PETAH TIKVA, Israel -- ECI Telecom Ltd. (Nasdaq: ECIL) announced today that it has reached a definitive agreement to sell a portion of its holdings in ECtel. Under the terms and conditions of the agreement, ECI will sell approximately 1.6 million shares of ECtel in a private placement to institutional investors for $14 per share for total gross proceeds of about $22 million. The investors would be entitled to a price adjusted under certain circumstances. As part of the transaction, ECtel has undertaken to register the shares for resale with the SEC within 75 days. The transaction is subject to certain approvals. After the transaction, ECI will hold 10.5 million shares, or 59% of ECtel. Doron Inbar, President and CEO of ECI Telecom said, "The sale of a portion of our holdings in ECtel was done in close cooperation with ECtel and confers benefits on both companies. It increases ECtel's float and broadens its shareholder base, while strengthening ECI's balance sheet. We are very pleased with ECtel's performance, believe in its strengths and continue to maintain a major stake in the company".ECI Telecom Ltd.