Press Release

ECI Telecom Supplies Yadkin Valley Telecom with Network Edge Solution for Triple Play

North Carolina-based provider to use service edge routers from ECI's Data Networking Division - formerly Laurel Networks

Petah Tikva, Israel - May 31, 2006 - ECI Telecom (NASDAQ: ECIL) today announced that North Carolina-based Yadkin Valley Telecom has selected ECI's service edge routers to streamline delivery of advanced, high-speed Internet services for its DSL subscribers, including video on demand and other triple play services. Yadkin Valley Telecom can now easily add new services or capabilities through software upgrades and the addition of interface cards.

By using ECI's solution, Yadkin Valley Telecom will be able to replace other vendors' ageing hardware, thereby simplifying network maintenance, management and service upgrades for its subscribers. The solution is based on the ST™-series service edge routers from ECI Telecom's Data Networking Division; formerly Laurel Networks.

"We chose the all-in-one solution from ECI because it meets our present and future routing and server needs. It also simplifies maintenance," said Scott Rudolph, network and engineering manager at Yadkin Valley Telecom. "ECI's future-ready architecture is a more cost-effective solution than purchasing a new piece of hardware for each new service we add."

Mark Bieberich, Director, Yankee Group, commented: "ECI anticipated the need for IP video-related product enhancements at the right time. By delivering advanced subscriber management features on the ST-series, ECI has helped customers consolidate network elements and simplify operations at the network edge."

"With our routing solution, providers like Yadkin Valley Telecom will benefit by being able to easily and seamlessly add advanced services to their customer offerings and enjoy a competitive edge," said Steve Vogelsang, Vice President of Marketing for ECI's Data Networking Division. "ECI is focused on addressing its customers' needs to increase and retain their respective customer bases. Additionally, we reduce their CAPEX and OPEX concerns."

About Yadkin Valley Telecom
Founded in 1950, Yadkin Valley Telephone Membership Corporation is a cooperative that serves six counties and 660 square miles in North Carolina, including the towns of Advance, East Bend, Cooleemee, Yadkinville, Jonesville and Mocksville. Its subsidiary, Yadkin Valley Telecom, Inc., offers deregulated telecommunications services including competitive phone service in two towns and Internet services to more than 10,000 customers. The carrier is based in Yadkinville, NC. For more information, visit: www.yadtel.net.

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.

Investor Relations:

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


Media Relations:

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

Fran Bosecker, PR@vantage, Tel: +1-212-532-5740X400
fbosecker@pr-vantage.com