ECI Wins China Telecom Deal

PETAH TIKVA, Israel -- ECI Telecom (NASDAQ:ECIL - News) today announced that Hunan Telecom, the operating unit of China Telecom Group (NYSE:CHA - News), has selected its next generation optical platform, the XDM® for deployment in its network. The platform will enable Hunan Telecom to generate new revenues via more reliable voice services as well as Ethernet, Frame Relay, and leased lines services. Hunan Telecom is now deploying the XDM platform throughout the province of Hunan, including the cities of Changsha, Chenzhou, Huaihua, Jishou, Loudi, Shaoyang, and Yiyang.

The XDM platform converges intelligent optical networking capabilities with advanced data functionality including ATM and Ethernet Layer 2 over SDH/SONET, CWDM and DWDM. Additionally, all products in the XDM family are designed around a unique single architecture that offers unprecedented capacity, cost savings and ease of integration.

Hunan Telecom is the operating unit of China Telecom Group, a New York Stock Exchange company based in Hunan Province. The company, which has more than 18,200 employees with the total assets of USD2.8 billion, offers a wide variety of telecommunication services including local and long-distance phone service, ISDN, ADSL, Frame Relay, DDN, high-speed Internet access and leased line service.

Hunan PTA chose ECI's XDM next generation optical platform for its field-proven reliability. It easily inter-connects with the company's existing equipment, making it possible to efficiently deploy the solution throughout the Hunan province.

"We are happy to be able to provide Hunan Telecom with a solution that enables it to expand services throughout the province," said Mr. Ye Baohui, Assistant General Manager at HETC, ECI Telecom's joint venture company in China. "Our relationship has grown substantially over the past 10 years and we look forward to continuing to grow together."

ECI Telecom Ltd.

China Telecommunications Corp.