Gilat Announces That Bank Hapoalim Has Informed of Plans to Sell Debt and Portion of Shareholdings in Company

Gilat Satellite Networks, Ltd. (Nasdaq:GILTF) today
announced that it has been informed by its shareholders, Bank Hapoalim
B.M. and Mivtach Shamir, that Bank Hapoalim has entered into an
agreement for the assignment of its loan and the option for the sale
of a portion of its shares.
   As per the terms of the contemplated agreement, Bank Hapoalim is
to sell to York Capital Management, an investment fund headquartered
in New York City, its rights and interest in the outstanding loan to
the Company in the amount of $71.4 million and an option for the
purchase of 1,000,809 of its approximately 3.3 million shares in the
Company. In addition, the Bank informed the Company that the agreement
will include the sale of an additional 1,250,000 shares to Mivtach
Shamir Finance Ltd. The Bank and Mivtach Shamir also confirmed that
they agreed to provide York Capital with a proxy to vote the remaining
Gilat shares held by the Bank and those sold to Mivtach Shamir 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.
   The consummation of the agreement is subject to the procurement of
the required regulatory approvals, the completion of due diligence,
the execution of the requisite documents for the assignment of the
Company's debt and the nomination of purchaser's representatives to
the Company's board of directors.

   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.