Business & Money Trail:

H3G SELECTS ECtel AS PROVIDER OF NGN FRAUD SOLUTIONS

ECtel Ltd, a leading developer and worldwide provider of fraud prevention, Quality of Service (QoS) and interconnect billing mediation solutions for present and next generation networks, announced the signing in December 2001 of a global frame agreement with H3G, a subsidiary of Hong Kong's Hutchison Whampoa. Hutchison Whampoa is one of the world's leading operators of telecommunications and Internet infrastructures. Under the terms of the agreement, H3G will license ECtel's NGN FraudView for the Group's new 3G mobile operators, worldwide. Implementation of NGN FraudView, ECtel's latest and most comprehensive real-time fraud prevention and security management solution designed specifically for IP-based Next Generation Network (NGN) environments, effectively deals with fraud detection and prevention in H3G's next-generation networks, and paves the way for H3G to lead the market in terms of NGN security.

The initial project of this frame agreement is for specific affiliates, anticipated to be followed by additional affiliate orders in the coming months. The total agreement is unlimited in time, and could encompass all current and future companies under the Hutchison umbrella group, with revenues commensurate with the number of affiliates participating in the project and the growing number of Hutchison network subscribers.

ECtel's NGN FraudView solution incorporates the Company's proven know-how and current solutions with the technology recently acquired through the purchase of Telrad Hawk Net-I Ltd ("NetEye"). The NGN FraudView solution is designed specifically for IP-based Next Generation Networks environments, anticipating and detecting both commonly used and emerging NextGen fraud techniques. NGN FraudView supports cost-effective integration and optimal business security, mutually protecting both H3G's 3G mobile networks and its customer interests. With NGN Fraudview, H3G will be able to secure profit, minimize network violation, offer superior service, project a positive image, and attract and retain customers.

Bob Fuller and Vincenzo Novari, H3G CEOs, said, "H3G is proceeding with its production plan for the launch of our 3G service, scheduled for the fourth quarter of 2002. In this context, we have secured the best available fraud detection system, specific for the third generation, for increased profitability for us as an operator, and also for transparency and convenience for our users."

Aharon Shech, president & Chief Executive Officer of ECtel Ltd, commented: "This frame agreement is a testament of Hutchison's foresight and long-term strategy to secure its next generation networks, and correspondingly the interests of its subscribers, a strategy which ensures its leadership position and continued success."

Shech further added that, "The cooperation with H3G, as envisaged in the frame agreement, represents a major milestone in ECtel's plan to provide advanced fraud detection and prevention for NextGen markets. Following the acquisition of NetEye, and thanks to the speedy and efficient integration of NetEye technologies with ECtel's existing solutions, we are currently able to present H3G and other NGN operators with the most comprehensive state-of-the-art fraud solutions for 3G networks -- the mobile networks of the future."

ECtel Ltd

As a leader in networks monitoring technology, ECtel Ltd develops and markets solutions that enable telecommunications and Internet service providers to monitor the Quality of Service and SLA over voice, data, cellular, VOIP and Next Generation Networks; to detect and prevent complicated fraud scenarios such as subscription, roaming and technical fraud; and, to perform Billing Verifications.

ECtel develops and deploys proprietary state-of-the-art hardware and software technologies in the areas of SS7 signaling and IP traffic monitoring and analysis, as well as algorithms for data management and analysis, such as rule based engine, profiling and data mining. These technologies are incorporated in one platform, which hosts ECtel's multiple applications.

For additional information on ECtel, we invite you to visit our Web site at www.ectel.com.

H3G

H3G was set up with the purpose of becoming the first Multi-Media Mobile Operator on the Italian market. Upon obtaining a UMTS license in Italy under the name Andala in November 2000, with an offer of 3,253 million Euro, H3G is now aiming at taking on the leadership in the third-generation mobile business. Its shareholders include first-rate Italian and international players in telecommunications, Internet and the new media, publishing and banking. Hutchison Whampoa is the majority shareholder with 88.2% of the corporate capital. The other shareholders are CIR, S. Paolo Imi, BMI, HDP, Gemina, and Tiscali. For further information: www.h3g.it.

Contact Avi Goldstein, senior vice president and CFO ECtel, 972-3-926-3030, or fax, 972-3-926-3111, or avig@ectel.com.