Russian Post, One of Russia's Largest Companies, Selects Gilat for Broadband Satellite Network; SkyEdge VSAT Network Will Serve

Gilat Satellite Networks Ltd. (Nasdaq:GILTF) today
announced it has been selected to provide a broadband satellite
communications network to Federal State Unitary Enterprise Russian
Post. Russian Post is one of Russia's largest companies, operating
more than 40,000 post offices and providing many other telecom,
shipping, retail and financial services for annual revenue of US$1.5
billion.
   Gilat will deploy a SkyEdge VSAT hub station in the Siberian
capital city of Novosibirsk. The network will provide broadband
Internet access, always-on data communications for postal applications
and telephony services to remote postal facilities throughout Siberia
and far-eastern Russia. The initial order is for several hundred
sites.
   Denis Chuiko, First Deputy General Director, Russian Post, said,
"Standard terrestrial networks cannot efficiently serve Russia's
outlying areas. It's a well-known fact that satellite technology is
the best way to bring reliable voice and broadband services to remote
communities. Gilat's SkyEdge platform provides us the flexibility to
add applications in the future, to meet the challenges posed to us by
our government and our customers."
   Chuiko added, "Gilat has proven that VSAT technology can be
deployed quickly and can meet the challenge of Russia's dispersed
population and rugged terrain. After our evaluation of many potential
network providers, Gilat was chosen because of the technological
superiority of its products and its reputation as the preeminent
worldwide provider of rural satellite solutions."
   Erez Antebi, Gilat Network Systems', Chief Executive Officer,
said, "We are fortunate to be able to provide Russian Post with the
solution it needs to bring dependable, secure communications to these
remote regions. Gilat has a wealth of experience in deploying and
operating rural communications sites and supporting its customers'
development of postal applications."
   Antebi concluded, "We view this agreement as more than just a
significant contract award, but rather the beginning of what we expect
will be a long-term cooperation with Russian Post to help it develop
new services and applications that meet critical goals set to it by
the Ministry of Telecommunications. We expect this network will enable
the Post to offer services that were previously unavailable, thus
increasing the Post's revenue and enabling strong business growth and
improved quality of life in the covered areas."

   About Russian Post

   With more than 85 subsidiaries, 370,000 employees and annual
revenue of US$1.5 billion, Russian Post is one of Russia's largest
companies. The Company operates more than 40,000 post offices and
retail establishments and provides consumers with financial and
telecommunications services. Please visit Russian Post at
www.russianpost.ru.

   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 in North America, managed services for
businesses and governments through its Connexstar service brand, for
consumers through its StarBand service brand and offers rural
telephony and internet access solutions to remote areas mainly in
Latin America via Spacenet Rural Communications.
   Gilat was founded in 1987 and has shipped over 550,000 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 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.