ECI Telecom Announces New Contract to Supply Optical Networking Solutions to ONSE Telecom, Korea

ECI Telecom Ltd. (NASDAQ/NM symbol: ECIL) announced today a new $6 million optical networking contract with Korea's rapidly expanding service provider, ONSE Telecom.

The new contract was received following ECI Telecom's successful deployment of a previous contract to build ONSE's SDH backbone network, covering the region between Seoul and Pusan.

ONSE Telecom will deploy ECI Telecom's DWDM optical networking and SDH solutions, to expand the original backbone network, and deliver a broad range of quality services including voice, data, Internet and video to its subscribers. ECI Telecom's eNM management solutions will centrally monitor and manage the entire network.

Commenting on the new contract, Chung Huh, Executive Vice President of Engineering Group, ONSE Telecom said: "We have been met with overwhelming demand to increase the capacity of our networks, for fast delivery of more services. ECI Telecom's optical networking solutions are enabling us to promptly meet this growing demand".

Amos Talmor Hubschmann, ECI Telecom's Corporate Vice President and General Manager of the Asia Pacific Region, said: "We consider the Korean market to be extremely important as it is extensively deploying sophisticated telecommunications infrastructure, to bring advanced services to subscribers throughout the country. ONSE Telecom is the second service provider in Korea to order ECI Telecom's optical networking solutions, joining the growing list of service providers worldwide who are deploying these solutions."

In response to the growing activities in Korea, ECI Telecom is establishing a new local customer support office to serve existing customers on-line.

ECI Telecom expects that it will complete delivery of equipment of the new contract by the end of Q2, 2000.

Published by Israel's Business Arena on April 5, 2000.

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