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ECI Telecom Optical Network Division Given Opportunity to Shine


Petah Tikva, Israel, March 9, 2001, Lightscape Networks, a member of the ECI Telecom Group (ECI Telecom: NASDAQ/NM symbol: ECIL), today announced its launch as a leading provider of intelligent, next-generation optical solutions. With more than 10 years of worldwide experience as part of ECI Telecom, Lightscape Networks provides highly scalable products that combine instant provisioning and on-demand network capabilities to facilitate rapid network growth and expansion.

Lightscape Networks began operating independently as of the start of the year following a strategic reorganisation of the business divisions within ECI Telecom, world leader of integrated network solutions. Lightscape Networks is already a strong force in Europe and Asia Pacific with an impressive and expanding customer base, including some of the major carriers and emerging operators, such as Deutsche Telecom, NTL, D2 Vodafone, China Telecom, Unicom and Bezeq. Sales in 2000 totalled almost $260 million.

Lightscape Networks will market its leading edge, next-generation, XDM optical networking solutions wordwide, maintaining ECI Telecom’s traditional strengths in Europe and Asia Pacific. In addition the company also plans to make an aggressive entry into the US market this year.

Lightscape Network’s European sales strategy will be supported via ECI Telecom’s offices in Germany, France, Holland, Italy and UK, as well as a network of distribution partnerships with existing, major industry players in Belgium, Luxembourg, Sweden, Finland, Denmark and Russia, who will integrate Lightscape Networks’ technology in to their own networking solutions.

"We are excited about this rare opportunity to launch with such a rich product pedigree and strong customer base" said Eran Dariel, president & CEO of Lightscape Networks. "Lightscape Networks comes out of the gate with a strong, stable lead over the pack of optical networking start-ups, while allowing us to compete effectively with the larger, traditional equipment providers. As part of ECI Telecom we have had direct involvement in many of the world’s largest telecommunications projects giving us a wealth of in-house experience in telecommunications infrastructure technology and professional services to draw upon."

Lightscape Networks’ family of optical platforms is based on a revolutionary single architecture approach, which enables new and established providers to penetrate new markets easily and to keep up with rapid, unpredictable network growth. Whether provisioning more bandwidth, adding more services, supporting DWDM, SONET/SDH and GbE, or migrating from ring to mesh topology, Lightscape Networks allows providers to be more competitive and gives them greater control over costs as they scale up their networks. Key products include the XDM multi-service, high-density optical platform, the LumiNet DWDM system and eNM intelligent network management. These products are supported by a complete Professional Services programme, which covers all stages of network implementation including planning, installation and support. Lightscape Networks also markets the BroadGate family of access products and the SDM series of SDH systems.

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About Lightscape Networks

Lightscape Networks is a leading provider of next generation intelligent optical networking solutions. Leveraging more than 10 years of global experience, Lightscape Networks offers advanced optical platforms that combine instant provisioning with on-demand network scalability. The Company’s highly dense, multi-service XDM is used by carriers to build flexible network topologies that cost-effectively scale to future demands. Lightscape Networks’ solutions are deployed in 45 countries worldwide and serve both major carriers and emerging service providers at all stages of optical network implementation. The company has corporate headquarters in Petah Tikva, Israel and regional offices across Europe and Asia Pacific. In the USA the regional headquarters are in Herndon, VA. Lightscape Networks is a wholly owned subsidiary of ECI Telecom Ltd. For more information on Lightscape Networks, please visit www.lightscapenetworks.com

About ECI Telecom

ECI Telecom Ltd is a provider of integrated network solutions for digital communications and data transmission systems. The Company designs, develops, manufactures, markets and supports end-to-end digital telecommunications solutions for today's new services and converging networks. The Company's products create bandwidth, maximise revenues for networking operators, expand capacity, improve performance and enable new revenue-producing services. In doing so, they enhance the capabilities of existing networks to support voice, data, video and multimedia services. ECI Telecom's equipment supports traffic in more than 500 service networks in over 145 countries.

This press release and additional information about the Company, are available on ECI Telecom's site: http://www.ecitele.com

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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, complete transactions with investors, the ultimate success of the de-merger process, product and market acceptance risks, the impact of competitive pricing, product development, commercialisation and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.

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