PETAH TIKVA, Israel -- ECI Telecom (NASDAQ:ECIL - News) announced today that Ukrtelecom (Ukrainian State Telecommunication Enterprise), the leading national telecommunications operator in the Ukraine, has again chosen its XDM® MSPP (multi-service provisioning platform) for its national multiservice optical backbone network, covering major cities and international gateways. The new order follows the successful installation of a $7M order for Kiev's metropolitan area network (MAN) in which ECI's XDM equipment, deployed in the shortest time, is now handling live traffic across 50 sites throughout the Kiev region.

According to the new contract, ECI Telecom will deploy and support XDM platforms in over 50 sites nationwide, to create a national multi-service transport backbone based on DWDM and SDH technologies and next generation Ethernet capabilities.

Ukrtelecom's decision to deploy the XDM® MSPP within its network was driven by its desire to migrate seamlessly from a purely SDH backbone to a universal transport facility. Ukrtelecom is moving ahead to build a scaleable, robust and universal transmission network that provides a transparent flow for voice and packet communications.

"We are pleased to have been chosen once again by Ukrtelecom. This contract is of strategic importance and represents ECI's foothold in the Central and Eastern European telecoms market," commented Irena Lisak, President of ECI Telecom's Russia and Former Soviet Union Business Unit. "Ukrtelecom is well-established as the national telecommunications largest incumbent retaining a very significant market share. The new infrastructure based on our XDM MSPP enables the company to maintain this status and generate new revenues in a growing marketplace."

ECI Telecom Ltd.

JSC Ukrtelecom