PETAH TIKVA, Israel, and MOSCOW -- ECI Telecom Ltd. (NASDAQ: ECIL - News) and MMG Ltd. today announced that they have reached a mutual agreement to end their joint marketing activities in Russia. The agreement will take effect immediately. As part of the agreement, MMG's telecom sales and support teams will be joining ECI's Russian subsidiary, which will assume responsibility for sales, as well as maintenance and support services, for ECI customers in Russia.

ECI has been active in the Russian market for more than 10 years, and is a significant supplier of telecom equipment to many of the leading carriers in the territory.

Commenting on the ending of the agreement, Doron Inbar, ECI's President and CEO said, "We want to take this opportunity to thank MMG for the time they invested over a number of years in assisting ECI penetrate the Russian market.

"Russia represents a key growth market for ECI. As a result, we have now made a strategic decision to take a more direct role in our sales efforts in this growing market. We have already established a new office in Moscow, enabling us to expand our coverage and take a more hands-on approach to sales in this region."

Mark Klabin, Director of MMG, said "We have appreciated working with ECI in Russia and helping establish it as a leading telecom vendor in this territory. We look forward to remaining active in the Russian market in other areas of commerce in the future."

ECI Telecom