Artel Communications Selects Gilat for RwandaTel Satellite Communications Network

Business Wire, Nov 13, 2002

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--Nov. 13, 2002

Gilat expands network with Artel, providing a 400-site DialAw@y

IP(TM) telephony and Internet network to service RwandaTel, the

country's national telecom company

Gilat Satellite Networks Ltd. (Nasdaq: GILTF) today announced it has been selected by Artel Communications to provide an additional two-way satellite communications telephony network for use throughout Rwanda.

The 400-site DialAw@y IP network will be deployed evenly throughout the country, each VSAT servicing two public phones using a prepaid (scratch card) system and powered with solar energy.

Artel will deploy, operate and maintain the VSAT network for RwandaTel, Rwanda's national telecom company. Deployment has already begun and is expected to be completed by the end of January 2003. With the completion of this project, Rwanda, with a total land area of 24.950 sq KM, will have one of the highest densities of public satellite telephone lines per square kilometer in the world (1 public telephone per 30 sq km).

Artel Chief Executive Officer Yves Godelet said, "The service being provided is revolutionary for this area. It is truly gratifying to see that the 18,000 residents of a small, isolated island in the middle of Lake Kivu, on the Congo-Rwanda border, now have telephone communication and will have Internet access in the near future, as a result of this technology. Just yesterday, they were cut off from the world, and today they are enjoying the benefits of the Internet age. This is what is meant when you say bridging the digital divide."

Yoel Gat, Gilat's Chairman and CEO said, "This latest deployment of the DialAw@y IP for RwandaTel, illustrates yet again the unique fit of our VSAT technology for rural applications in Africa and around the world. Rwanda is facing the enormous task of closing the technology gap of several generations in just a few short months, making time an essential element in the project. Only VSAT technology allows for the deployment of hundreds of sites, in difficult terrain, in such a short period of time."

In July, Gilat announced a separate agreement with Artel for a hub station and a 100-site DialAw@y IP network to provide consumers and businesses with telephony and high-speed Internet service in the education, health care, financial services and government markets throughout Rwanda and Central Africa.

DialAw@y IP is one of the only VSAT products capable of providing high-speed Internet connectivity and toll-quality telephony service on a single, low-cost platform. Each unit supports a PC/LAN connection and up to six telephone channels. It is a low-cost solution for the fulfillment of Universal Service/Access Obligations, Public Call Office requirements and small office/home office (SOHO) requirements for bundled telephony and Internet access.

DialAw@y IP networks are rapidly deployed, highly scalable and field upgradable. The remote equipment functions in extreme weather conditions, has a long lifespan and can be monitored from a distance. Ultra-low power consumption (less than 25W) enables the units to operate in remote locations that have minimal or no electricity, by incorporating a single-panel solar system or power generators.

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, Skystar 360E and SkyBlaster(a) 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), Skystar 360E(TM), 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.

(a) 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.