Gilat Announces Second Quarter 2005 Results

Gilat Satellite Networks Ltd. (Nasdaq:GILTF), a
worldwide leader in satellite networking technology, today reported
its results for the quarter ending June 30, 2005.
   Revenues for the second quarter of 2005 were US$51.4 million and
net loss was US$(0.5) million or US$(0.02) diluted per share. By
comparison, revenues for the second quarter of 2004 were US$57.5
million and net loss was US$(1.8) million or US$(0.08) diluted per
share. Included in the second quarter of 2005 results are US$4.8
million in depreciation and amortization expenses as compared to
US$7.8 million in the same period last year.
   Revenues for the six month period ended June 30, 2005 were
US$104.4 million and net loss was US$(1.5) million or US$(0.07)
diluted per share. By comparison, revenues for the six-month period
ended June 30, 2004 were US$114.9 million, and net loss was US$(8.3)
million or US$(0.37) diluted per share. Included in these six months
results are US$10.2 million in depreciation and amortization expenses
in the six-month period ended June 30, 2005 as compared to US$16.0
million in the same period last year.
   The Company reported total cash balances (including cash and cash
equivalents, short and long-term restricted cash, short and long-term
restricted cash held by trustees less short-term bank credit) of
US$116.0 million as of June 30, 2005, an increase of US$3.9 million
from the cash balance of US$112.1 million as of March 31, 2005. Not
included in these amounts is a US$5.1 million payment made in July to
the Israeli Tax Authorities as part of the settlement agreement for
the Company's tax assessment for the years 1998-2003, as previously
announced by the Company, as well as scheduled loan amortization and
interest payments in an amount of approximately US$7.5 million. As of
July 30, 2005, the Company had approximately US$103 million cash
balances (as defined above) and approximately US$125 million long-term
loans (including current maturities of long-term loans) and
convertible subordinated notes.
   The Company also announced the appointment of Mr. Joshua Levinberg
as Executive Vice President of Business Development. Mr. Levinberg is
the co-founder of Gilat and from June 1999 to 2003 served as Senior
Vice President for Business Development having previously served in
that position from 1994 to April 1998. In 1998-1999, Mr. Levinberg
served as Chief Executive Officer of Gilat to Home Latin America
(Antilles) N.V., previously Global Village Telecom Antilles N.V. From
1989 until September 1994, he served as Executive Vice President and
General Manager of Gilat Satellite Networks, Inc. Mr. Joshua Levinberg
is the brother of Mr. Amiram Levinberg, CEO and Chairman of the
Company.

   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.