Press Release

ECI Telecom's Multi-Service Edge Routers Selected by SDN Communications to Provide New IP/MPLS Network Infrastructure

First edge router deployment since ECI's acquisition of Laurel Networks

Pittsburgh, PA, August 8, 2005 - ECI Telecom (NASDAQ: ECIL) today announced that SDN Communications, South Dakota's largest communications network, has selected ECI's ST200TM multi-service edge routers to deliver enhanced IP services. The ST200 product line has become part of ECI's product offering following the acquisition of Laurel Networks in June this year. Based in Pittsburgh, Pa., Laurel now operates as ECI's Data Networking Division.

The ECI ST200-based infrastructure offers SDN a smooth migration to an advanced IP/MPLS network. Already operational, the new network enables SDN to offer customers a range of quality-assured data services, including Virtual Private Networks. It also provides an ideal platform for SDN to eventually migrate other services to the network -- including voice and video -- for cost and operational efficiencies. Additionally, SDN selected ECI's LPSTM provisioning system to provide an easy-to-use, integrated service provisioning and management system for the network.

"Equipment installation was completed in early June and we're already seeing incremental revenue opportunities," said Mark Shlanta, Chief Executive Officer of SDN Communications. "ECI Telecom provided a solution that will enable SDN to expand its Triple Play services from our baseline offerings and grow revenue more rapidly."

SDN Communications, a regional telecommunications provider, consists of 27 independent telephone companies covering 75 percent of South Dakota's geography. SDN transmits voice, video, and data over 5,000 miles of fiber to more than 300 communities state-wide.

ECI's ST-series routers support a complete suite of advanced data services in a single platform -- including VPNs, broadband, Internet, switched services, VoIP and video. The routers provide service flexibility along with the performance needed to deliver next-generation Triple Play applications to thousands of simultaneous users. The LPS system delivers instant provisioning and offers a platform for customer self-service provisioning via a web portal.

"This deployment reinforces our strategy to deliver regional service providers an IP networking solution that allows them to cost effectively add video and voice services and increase overall revenue per subscriber," said Steve Vogelsang, Vice President of Marketing for ECI's Data Networking Division.

About SDN Communications
Headquartered in Sioux Falls, SDN Communications and the cooperative, municipal and private telephone companies of South Dakota, operate a 5,000-mile statewide fiber optic network. Business and residential customers use the network for telephone, cable television, electronic communications and Internet access.

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, Core IP/MPLS routers, 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.

Investor Relations:

Jay Kalish,VP IR, Tel: International access code +972-3-926-6255
jay.kalish@ecitele.com


Media Relations:

Karen Gershon, Corporate Communications, Tel: International access code +972-3-926-8341
karen.gershon@ecitele.com

Ilene Adler, PR@vantage, Tel: +1-415-948-1970 ext.102
iadler@pr-vantage.com