Gilat Reaches a Milestone - 30 SkyEdge Hubs and 10,000 VSATs; Introduces SkyEdge Basic Hub for Small Networks

Gilat Satellite Networks Ltd. (Nasdaq:GILTF) today
announced that it has shipped more than 30 SkyEdge(TM) commercial hubs
and more than 10,000 SkyEdge VSATs worldwide.
   The SkyEdge system represents a new approach to VSAT-based
networks. This system is based on the concept of a single scalable hub
that serves a variety of market segments. The SkyEdge hub is available
in various configurations to support a wide range of networks, from
small networks, consisting of a few tens of sites, to large networks
that include tens of thousands of sites. These networks can be
operated in either a dedicated or a shared hub environment.
   The SkyEdge hub supports a family of VSATs tailored for various
applications such as broadband, VoIP, video, trunking and others. In
addition, the SkyEdge platform supports both Star and Mesh topologies.
This single hub allows the operator to simultaneously serve various
customers, while providing security, Quality of Service (QoS) and
management for each, as well as true network segregation.
   SkyEdge's unique system architecture enables network operators to
provide specific services to different end customers from a single
hub. The SkyEdge VSATs represent a highly integrated and reliable
"single box" solution, providing "all embedded" VPN, HTTP and TCP
acceleration, VoIP and Mesh capabilities. Thus, the SkyEdge offering
allows for a reduction in the capital expenses and resources required
for the operation of separate networks. In addition, SkyEdge's
advanced access scheme, 8PSK modulation and Turbo Product Code (TPC)
provide outstanding space-segment efficiency that reduce operating
expenses. These attributes can make the SkyEdge the lowest TCO (total
cost of ownership) VSAT network presently available.
   As part of the SkyEdge offering, Gilat has introduced the SkyEdge
Basic Hub, designed to meet the needs of small network operators. This
hub addresses the need for a simple low-cost entry-level hub, capable
of supporting IP centric traffic for up to 200 VSATs. Based on
scalable and versatile architecture, the Basic Hub can be upgraded in
capacity and features to a Basic Redundant Hub and a Full Scale Hub,
as the need arises.
   Tal Meirzon, Vice President Marketing and Business Development of
Gilat Network Systems said, "We are very proud of SkyEdge's market
acceptance. Within a very short time, it has become Gilat's flagship
product. SkyEdge systems have been deployed with customers in
Australia, India, Turkey, Brazil, Russia, Kazakhstan, Nigeria and in
other locations." Meirzon added, "the SkyEdge concept derives from our
constant commitment to reducing Total Cost of Ownership for satellite
network operators. Gilat's understanding of evolving market needs has
driven us to create an attractive solution for small networks, in
addition to our traditional large network solutions. We are providing
our customers with innovative solutions to support their growing
business needs."

   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"), 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.
   Founded in 1987, Gilat has shipped over 550,000 Very Small
Aperture Terminals (VSATs) to more than 80 countries across six
continents. Headquartered 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.