Gilat Announces Changes in Board of Directors; Mr. Amiram Levinberg Named CEO and Chairman of the Board

Gilat Satellite Networks Ltd. (NASDAQ: GILTF) today
announced changes in its board of directors and management, including
the nomination of Mr. Amiram Levinberg as the Company's Chairman of
the Board and Chief Executive Officer. The announced changes were made
in connection with Bank Hapoalim informing the Company that it has
completed the sale of its $70.4 million loan and the corresponding
warrant to York Capital Management.
   In addition, Bank Hapoalim has granted to York an option to
purchase 1,000,809 of its approximately 3.3 million Gilat shares. At
the same time, Bank Hapoalim sold an additional 1,250,000 shares to
Mivtach Shamir Holdings Ltd. Bank Hapoalim and Mivtach Shamir agreed
to provide York with a proxy to vote all of these approximately 3.3
million Gilat shares as part of the transaction. The proxy is to
remain valid until the earlier of two years from the closing and the
date upon which such shares are sold.
   York Capital Management is an investment fund headquartered in New
York City with approximately $6 billion in assets. York was founded in
1991 and specializes in value oriented and event driven equity and
credit investments. Mivtach Shamir Holdings Ltd. is an investment
company traded on the Tel-Aviv stock exchange that focuses on
investments in areas such as technology, communications, real-estate
and venture capital.
   In connection with the transaction, six existing members of the
Board resigned and new directors were appointed. The resigning
directors include Gilat's Chairman and Chief Executive Officer, Mr.
Shlomo Rodav, as well as Robert Bednarek, Pinchas Buchris, Gideon
Chitayat, Abraham Neyman, and external director, Ms. Linda Harnevo.
External director Mr. Haim Benjamini will continue to serve on the
Company's board.
   In addition to Mr. Benjamini and joining the Company's board of
directors is chairman of the board Mr. Amiram Levinberg, co-founder
and President of Gilat from 1995-2003; Mr. Jeremy Blank, vice
president of York Capital Management and former vice president within
Morgan Stanley's fixed income and investment banking departments; Dr.
Udi Ganani, Chairman of the board of Aeronautics Defense Systems and
former Chief Executive Officer of Israel Military Industries Ltd.; Ms.
Karen Sarid, General Manager of Orex Computed Radiography Ltd., a
Kodak company and former Chief Financial Officer and Board member of
Foresoft Ltd., a subsidiary of the Formula Group; and Mr. Izhak Tamir,
President and Director of Orckit Communications Ltd. In accordance
with the Israeli Companies Law, the appointment of Mr. Levinberg as
both CEO and Chairman of the Board is subject to shareholder approval.
   The Company also announced that it intends to convene a special
shareholders meeting on August 30, 2005. Among the items on the agenda
will be the re-election of the new members of the Company's Board of
Directors, the appointment of Amiram Levinberg as chairman of the
board and chief executive officer, and the nomination of Ms. Leora
Meridor, as external director to replace Ms. Linda Harnevo. Ms.
Meridor has served as the chairman of Bezeq International since
January 2001.
   Amiram Levinberg, Gilat's new chairman of the board said: "I want
to thank Shlomo Rodav for his devoted service to the Company. Shlomo
deserves substantial credit for the significant re-organization
process Gilat has undergone during the past two years. Such process
has been instrumental in the stabilization of the Company."
   Mr. Levinberg added: "Today's market is more competitive and the
goal of achieving profitability and growth has become increasingly
challenging. I am returning home to the company I was privileged to
co-found with a new mission: to re-strengthen Gilat's market position,
extend its technological leadership and leverage the Company into new
markets and service offerings. I know I have a great team working with
me in pursuing these goals."

   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.

   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.