ECI Telecom and Civcom Significantly Simplify Optical Transport Networks with World's First Compact 10Gbps Widely Tunable Transponder

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Bangkok--26 May--vantage

--- Offers the savings and flexibility of Long Haul solutions to Metro Networks --- ECI Telecom (NASDAQ: ECIL), a leading provider of advanced communication solutions and Civcom, a manufacturer of Opto-electronic components, modules and subsystems, today announced the world's first compact 10Gbps widely tunable transponder designed to bring significant cost and performance benefits to both metropolitan area and long haul ROADM networks. With the proliferation of triple play and business data applications, carriers can build their Optical Transport Networks (OTN) while saving spare-part costs and reducing total cost of ownership. The new transponder provides a new class of convenience and price points, delivering more network functionality for optical networks. Developed by Civcom and ECI, this new transponder will enable ECI's customers to reduce costs and experience performance benefits that full C-band tunable lasers provide for both metro and long haul networks. This full C-band widely tunable transponder dramatically cuts the total cost of ownership by reducing the number of transponder spare parts needed from 40/80 to one, as a single transponder can replace any working transponder in the commonly used ITU-T grid. It also remotely selects and changes the actual wavelength, and when combined with ECI's ROADMs, it easily provisions new wavelengths and enables the rerouting of existing ones for services such as traffic balancing and restoration. Typically, WDM vendors offer widely tunable lasers only for long haul systems while the metro systems are limited to tunable lasers of up to 4/8 wavelengths. The unique compact size of this new module makes it ideal for metro networks, where compact size, modularity, and cost effectiveness are key. Designed for ECI's XDM(R) All Range(TM) WDM/ROADM system and part of ECI's OTN offerings, the highly compact transponder plugs into the XDM universal traffic card. This card is used for all transponder and combiner applications for both metro and long haul networks. "This innovative solution demonstrates our technological development efforts to significantly reduce inventory costs and enables customers to remotely configure traffic in both metro and long haul networks. We are already receiving orders in large numbers and the feedback from our customers is extremely positive," said Eyal Shaked, Executive Vice President and General Manager of ECI Telecom's Optical Networks Division. "This is an important step in ECI's approach for one system to cover access to core next generation WDM/OTN networks." The Free-Light Compact Tunable Transponder (CTT) is a Long Reach 80km, 40/80 channels, Widely Tunable Transponder specially designed and manufactured by Civcom and according to ECI's line card specifications. The transponder provides the ability to tune wavelengths through a single card and simplify network structure. "We are very pleased to partner with ECI to deliver this exciting new product," said Yair Itzhar, Sales & Marketing Vice President of Civcom. "This cooperation launched a new relationship between Civcom and ECI, stimulating new products and delivering great new choices for customers who want to technologically upgrade their optical networks while keeping within budget and footprint constraints." The compact 10Gbps widely tunable transponder is available today, and complements the XDM's existing compact 2.5Gbps widely tunable transponder, which has been available since 2002 and also targets both Metro and Long-Haul networks. About ECI Telecom ECI provides advanced telecommunications solutions to leading carriers and service providers worldwide. By translating a deep understanding of their needs into innovative, technologically advanced solutions, ECI enables its customers to increase the value of the infrastructure of their networks and reduce operating expenses. ECI's platforms provide carriers and service providers with carrier-grade solutions for easily introducing new revenue-generating services. ECI provides innovative IP service delivery solutions to the converged telecom networks encompassing broadband access gateways, service edge routers, optical transport, NGN VoIP and multimedia applications and services. ECI maintains a global sales, marketing and customer support network, as well as a host of strategic channel relationships worldwide. Certain statements contained in this release may contain forward-looking information with respect to plans, projections or future performance of the Company. By their nature, forward-looking statements involve certain risks and uncertainties including, but not limited to, product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission. About Civcom(R) Civcom is a pioneer in the development and manufacturing of cost-saving dynamic Opto-electronic components, modules and sub-systems, specializing in the field of 10Gbps and 40Gbps Telecom applications. Founded in 2000, with HQ and sales office in Israel and an office in the US, Civcom Company leads the way in the field of dispersion tolerance transmission providing solution for some of the most progressive tunable and fixed transponders. Civcom's Free-Light line of products also consists of: Civcom's 300PIN MSA widely tunable or fixed 10Gbps transponders and testing platform, based on the industry's highest performing widely tunable laser technology. Coupled with Civcom's expertise in electro-optic integration, packaging, in-house most advanced dispersion compensation technologies and tunable laser control algorithms. Civcom's transponders integrate with Optical DuoBinary, Optical Dispersion Compensation and Electrical Dispersion Compensation technology, allowing a wide range of applications for networks reaching from 80km up to 350km. For additional information about Civcom, visit www.civcom.com Contact for ECI Telecom: Investor Relations: Jay Kalish, VP Investor Relations, ECI Telecom, Tel: International access code +972-3-926-6255, [email protected] Media Relations: Karen Gershon, Corporate Communications, ECI Telecom, Tel: International access code +972-3-926-8341, [email protected] Fran Bosecker, PR@vantage , Tel: +1-212-532-5740 x400, [email protected] Contact for Civcom: Orit Weinreich, Marcom Manager, Tel: +972.3.9229229x134, Tel 2: +972.54.5614134, [email protected]

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