ECI Telecom Ltd. (Petah Tikva, Israel) and Tadiran Telecommunications Ltd. (Petah Tikva, Israel)

ECI Telecom Ltd. (Petah Tikva, Israel) and Tadiran Telecommunications Ltd. (Petah Tikva, Israel) announced an agreement in principle to merge in a stock-for-stock transaction, subject to a definitive agreement. Under terms of the agreement, Tadiran shareholders will receive one share of ECI for each 1.79 shares of Tadiran, although adjustments in the exchange ratio are possible. The combined entity will continue to be headquartered in Petah Tikva. The proforma combined revenues for both companies for the 12 months ending in June 1998 were approximately $1.15 billion.