EDS Israel to Provide Outsourcing for ECI Telecom

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November 20, 2001 — ECI Telecom Ltd. (ecitele.com) announced yesterday the signing of a five-year agreement to receive outsourcing services from EDS Israel (eds.com/israel), a part of the Worldwide EDS Group. The total sum of the agreement is approximately US$80 million.

EDS Israel will handle all the activities of ECI-IT, the company responsiblefor the operation and development of the entire information system for ECITelecom Ltd. According to the agreement signed between the parties, EDSIsrael will operate the company and supply ECI Telecom with all maintenance,support and development in this area in the future. ECI-IT today employsapproximately 190 employees, 60 of whom are company employees; the rest aresub-contractors and external suppliers’ employees.

EDS Israel’s CEO, Yair Pecht, says, “This is one of the largest outsourcingagreements signed in Israel in the last few years. The agreement with ECITelecom strengthens EDS Israel’s position as a leading company in Israel ina wide range of services in the field of Information Technology, includingoutsourcing. EDS Israel has experience and extensive knowledge of ECITelecom, as it has been a supplier of services and solutions for manysuccessful years. Recently EDS World inaugurated a new line of businesssupporting the life cycle of development of high technology products such asthose produced in ECI. The two companies can bring about a positive synergythrough their respective experience.”

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