Telkom SA Limited to Implement Gilat's 360E VSAT Solution for Broadband Satellite Communications Network; Agreement Calls for More Than 26,000 Sites in the Next Five Years

Business Wire, Nov 12, 2002

Business Editors/High-Tech Writers

PETAH TIKVA, Israel--(BUSINESS WIRE)--Nov. 12, 2002

Gilat Satellite Networks Ltd. (Nasdaq: GILTF) today announced it has been selected by its long-time customer Telkom SA Limited to provide a Skystar 360E satellite hub station and thousands of VSAT terminals, establishing Gilat's satellite-based technology as Telkom's broadband VSAT offering.

The agreement spans a five year period, with an incremental deployment of VSAT terminals reaching a cumulative amount of more than 26,000 units by the fifth year, making it when completed, one of the largest VSAT networks in the world.

The network is to offer integrated Ku and C Band broadband IP applications for corporate, SOHO and SMEs, throughout Sub Saharan Africa.

Yoel Gat, Gilat's Chairman and Chief Executive Officer, said, "We find it gratifying to know that our technology is used to bring the power of high-speed interactive data applications - such as Internet access - to corporate users, SOHOs, small businesses (SME) and power users throughout South and Sub-Saharan Africa. This milestone agreement, with Africa's largest telecommunications operator and one of the world's major telecom players, continues to demonstrate the confidence in Gilat in general and in the company's technology in particular."

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc. and Gilat Latin America, is a leading provider of telecommunications solutions based on Very Small Aperture Terminal (VSAT) satellite network technology - with nearly 400,000 VSATs shipped worldwide. Gilat markets the Skystar Advantage, DialAw@y IP, FaraWay, 360E and SkyBlaster(*) 360 VSAT products in more than 70 countries around the world. The Company provides satellite-based, end-to-end enterprise networking and rural telephony solutions to customers across six continents, and markets interactive broadband data services. The Company is a joint venture partner in SATLYNX, a provider of two-way satellite broadband services in Europe with SES GLOBAL. Skystar Advantage(R), DialAw@y IP(TM) and FaraWay(TM) are trademarks or registered trademarks of Gilat Satellite Networks Ltd. or its subsidiaries. Visit Gilat at www.gilat.com. (*SkyBlaster is marketed in the United States by StarBand Communications Inc. under its own brand name.)

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.