China Satcom Completes Deployment of 1,000 Gilat SkyEdge VSATs; Broadband Satellite Terminals Power Rural Telephony Application

Gilat Satellite Networks, Ltd. (Nasdaq: GILTF), today
announced that China Satellite Communications Corp. (China Satcom),
one of the six basic telecommunications operators in China, has
completed deployment of about 1,000 Gilat SkyEdge VSATs for rural
telephony applications in Gansu Province and Inner Mongolia Autonomous
Region. China Satcom is one of China's largest satellite operators.
   Giora Reish, Gilat's Regional Vice President, Asia, said, "For
over a decade, Gilat has built a strong reputation among China's
largest telecom operators for providing public rural communication
solution that is fully integrated with the Chinese public telephony
network, combined with responsive local customer service. This
solution connects Chinese vast rural population to public services
available in urban areas. China Satcom was particularly impressed with
SkyEdge's toll quality voice, efficient space segment utilization and
low power consumption, which will make it possible to operate the VSAT
network in the most economical manner."
   Gilat's SkyEdge platform supports telephony and data application
on a single hub located in Beijing. It provides seamless telephony
connectivity to public communication switches of national carriers. It
can be deployed quickly in any environment and can perform well in all
types of weather conditions.

   About China Satellite Communications Corp.

   China Satcom is one of six basic telecommunications operators in
China, China Telecom, China Net Com, China Mobile, China Unicom, China
Satcom and CRC. China Satcom owns 31 provincial branches throughout
China and operates under the leadership of the Ministry of Information
Industry, the People's Republic of China. China Satcom is a newly
established, state-owned backbone enterprise built according to the
requirements of China's national telecom restructuring of 2001.

   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 three business units: (i) Gilat
Network Systems ("GNS"), which is a provider of network systems and
associated professional services to service providers and operators;
(ii) Spacenet, which provides managed services for businesses and
governments through its Connexstar service brand, for consumers
through its StarBand service brand; (iii) Spacenet Rural
Communications, which offers rural telephony and Internet access
solutions to remote areas primarily in Latin America.
   Gilat was founded in 1987 and has shipped over 600,000 Very Small
Aperture Terminals (VSATs) to more than 85 countries across six
continents. Gilat's headquarters is located in Petah Tikva, Israel.
The Company has 14 local offices and three 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.

   Certain statements made herein that are not historical are
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
identify forward-looking statements. These forward-looking statements
involve known and unknown risks and uncertainties. Many factors could
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
statements, including, among others, changes in general economic and
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.