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Class Action Suit Filed Against ECtel

19 January 2005

ECtel Ltd. (Nasdaq: ECTX) announced today that a class action complaint had been filed in
the District Court of the State of Maryland against the Company, certain
officers and directors of the Company who served in such positions in the
years 2001-2003, as well as ECI Telecom Ltd. (a major shareholder during the
referenced period). The complaint alleges violation of U.S. Federal Securities
laws and breach of fiduciary duties in connection with disclosure of ECtel's
financial results between April 2001 and April 2003.

The Company stated that it believes that the allegations made in the
complaint are without merit and that it intends to vigorously defend against
such complaint.

About ECtel Ltd.

ECtel is a leading global provider of cutting-edge Fraud Prevention and
Revenue Assurance solutions for converged telecommunications networks. Based
on proprietary state-of-the-art hardware and software technologies, ECtel's
cost-effective systems are used by premier telecommunications operators
throughout the world. ECtel Ltd. is traded on NASDAQ under the symbol ECTX.
For additional information, visit the ECtel web site at http://www.ectel.com

Certain statements contained in this release contain forward-looking
information with respect to plans, projections or future performance of the
Company, the occurrence of which involves certain risks and uncertainties,
including, but not limited to, the slow down in expenditures by telecom
operators the unpredictability of the telecom market, product and market
acceptance risks, the impact of competitive pricing, product development,
fluctuations in quarterly and annual results of operations, dependence on
several large customers, commercialization and technological difficulties,
risks related to our operations in Israel, and other risks detailed in the
Company's annual report on Form 20-F and other filings with the Securities and
Exchange Commission. ECtel undertakes no obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

Contacts:
ECtel Ltd.
Avi Goldstein
Senior Vice President and CFO
Tel: +972-3-9266112
Fax: +972-3-9266103
Email: Avig@ectel.com

ECtel Ltd.
Danit Hakimian
Investor Relations Coordinator
Tel: +972-3-9266113
Fax: +972-3-9266103
Email: Danith@ectel.com

Source: PR Newswire


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