Ace Hardware Selects Gilat's Spacenet Subsidiary to Provide Its Member Retailers with Nationwide, Commercial-Grade Broadband Con

Gilat Satellite Networks Ltd. (Nasdaq:GILTF) today
announced that its U.S. subsidiary, Spacenet Inc., has been selected
by Ace Hardware Corp. to provide satellite broadband network solutions
for its members nationwide. Ace Hardware serves 4,800 independent
hardware and building materials retailers through the United States.
   The Spacenet broadband satellite network will provide high-speed
Internet/intranet access and fast credit/debit card authorization for
Ace members. Spacenet's Connexstar services are available almost
anywhere in the United States, providing business-grade VSAT
connectivity with professional installation, advanced application
support and industry-leading customer care.
   Ace Hardware Data Security Manager Bob Wrobel said, "Spacenet's
Connexstar services offer our member retailers a consistent, reliable
and affordable broadband solution. Spacenet's ability to provide a
satellite solution to our members nationwide was a critical factor in
our decision to select the Connexstar offering. We are confident that
Spacenet will provide the high quality of service and support that Ace
requires for our retailers."
   Spacenet's President and CEO Bill Gerety said, "We are very
pleased with Ace's choice of Spacenet as a broadband solutions
provider for their member retailers. Our offerings are uniquely suited
for retailers' needs, offering nationwide coverage and services that
can be configured to meet each store's network requirements. This
relationship with Ace further demonstrates Spacenet's leadership in
providing connectivity services for the hardware industry."

   About Ace Hardware Corp.

   Ace Hardware Corp. is the largest retailer-owned hardware
cooperative in the industry. Annual retail sales for Ace's 4,800
hardware, home center and lumber and building materials locations are
approximately $13 billion. Headquartered in Oak Brook, Ill., Ace
currently operates 15 distribution centers in the United States with
retailers' stores located in all 50 states and 70 countries. More
information on Ace can be found at www.acehardware.com.

   About Spacenet

   Spacenet is the worldwide services group of Gilat Satellite
Networks. Spacenet Inc., based in McLean, Virginia, provides
connectivity, value-added applications and managed networks to
customers in North America and worldwide, including its Connexstar
satellite and hybrid terrestrial broadband networking solutions for
enterprise and government customers, and StarBand residential and
small-office VSAT services. Spacenet has more than 20 years of
experience providing wide area networks, application support, customer
care and network management for some of the largest satellite-based
networks in the world. Visit Spacenet at www.spacenet.com.

   About Gilat Satellite Networks Ltd.

   Gilat Satellite Networks Ltd. (Nasdaq:GILTF) is a leading provider
of products and services for satellite-based communications networks.
The Company operates under two business units: (i) Gilat Network
Systems ("GNS"), which is a provider of network systems and associated
professional services to service providers and operators and (ii)
Spacenet, which provides managed services for businesses and
governments through its Connexstar service brand, for consumers
through its StarBand service brand and for rural communities through
Spacenet Rural Communications.
   Gilat was founded in 1987 and has shipped over 550,000 Very Small
Aperture Terminals (VSATs) to more than 80 countries across six
continents. Gilat's headquarters is located in Petah Tikva, Israel.
The Company has 14 local offices and 3 service facilities worldwide.
Gilat markets the SkyEdge(TM) Product Family which includes the
SkyEdge(TM) Pro, SkyEdge(TM) IP, SkyEdge(TM) Call, SkyEdge(TM) DVB-RCS
and SkyEdge(TM) Gateway. In addition, the Company markets numerous
other legacy products. Visit Gilat at www.gilat.com.

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forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. The words "estimate," "project,"
"intend," "expect," "believe" and similar expressions are intended to
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cause the actual results, performance or achievements of Gilat to be
materially different from any future results, performance or
achievements that may be expressed or implied by such forward-looking
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business conditions, inability to maintain market acceptance to
Gilat's products, inability to timely develop and introduce new
technologies, products and applications, rapid changes in the market
for Gilat's products, loss of market share and pressure on prices
resulting from competition, introduction of competing products by
other companies, inability to manage growth and expansion, loss of key
OEM partners, inability to attract and retain qualified personnel,
inability to protect the Company's proprietary technology and risks
associated with Gilat's international operations and its location in
Israel. For additional information regarding these and other risks and
uncertainties associated with Gilat's business, reference is made to
Gilat's reports filed from time to time with the Securities and
Exchange Commission.