Gilat to Provide Broadband Wireless Access Solutions With Proxim WiMAX Products

Business Wire, May 7, 2007

Gilat's SkyMP Solution Chosen by Asiainfo for Business and Consumer Broadband Wireless Services in Kyrgyzstan

PETAH TIKVA, Israel -- Reissuing release to add ticker symbol for searching purposes.

The release reads:

GILAT TO PROVIDE BROADBAND WIRELESS ACCESS SOLUTIONS WITH PROXIM WIMAX PRODUCTS

Gilat's SkyMP Solution Chosen by Asiainfo for Business and Consumer Broadband Wireless Services in Kyrgyzstan

Gilat Satellite Networks Ltd. (Nasdaq:GILT) today announced that it has entered into an OEM purchase and global marketing agreement with Proxim Wireless Corporation, a wholly-owned subsidiary of Terabeam, Inc (NASDAQ:TRBM). The agreement is part of an implementation by Gilat of its strategy to expand its product portfolio using Gilat's core competencies. Leveraging its strong global sales, turnkey project implementation, satellite backhaul solutions and local support capabilities, Gilat now offers WiMAX, Wi-Fi Mesh and other Broadband Wireless Access solutions, to its existing and potential customers.

Gilat has established a wireless solutions department which will market the wireless products -- SkyMP.16[TM] for WiMAX technology and SkyMP.11[TM] for license-free frequencies. The new department is headed by Tal Meirzon, who, for over 10 years, has held a variety of senior positions at Gilat, including his most recent position as vice president of marketing and business development for Gilat Network Systems. Mr. Meirzon will continue to serve as Gilat Network System's vice president of business development in addition to his new position as general manager, wireless solutions.

Gilat also announced today that it has received its first Broadband Wireless Access order, from Asiainfo, an Internet Service Provider in Kyrgyzstan. Gilat will provide Asiainfo with an end to end solution which will include a Broadband Wireless Access and wireless backhaul solution. The solution will enable Asiainfo to deliver broadband wireless services for businesses and consumers throughout Kyrgyzstan's capital, Bishkek. Asiainfo is an existing Gilat customer, that recently deployed a SkyEdge broadband satellite hub within its network.

"The markets which require broadband satellite communications often have a need for Broadband Wireless Access technology," said Amiram Levinberg, Chairman and CEO of Gilat Satellite Networks Ltd. "Proxim's WiMAX expertise and product offering, coupled with our strong presence in emerging markets, wide range of satellite technologies, network planning and systems integration capabilities, underscores the synergistic value of this cooperation. The new contract with Asiainfo is an excellent example of how we can now cater to our customers' broadband wireless access and satellite communications needs through a single point of contact. We have targeted the broadband wireless market as one of Gilat's future growth engines and are now well-positioned to provide a one stop shop for broadband wireless solutions, on a nationwide basis including rural and remote areas," he added.

WiMAX is an emerging standard for interoperability of Broadband Wireless Access technologies. As a leader in Broadband Wireless technology, Proxim's products will expand Gilat's offering to include WiMAX and Wi-Fi Mesh as additions to its satellite networking solutions. This will enable Gilat to provide wireless Pico base-station architecture - all outdoor, scalable and cost effective data, voice and video solutions. Furthermore, in nationwide deployments, satellite backhaul is often used to connect last mile WiMAX to the Internet backbone.

Proxim's CEO, Robert E. Fitzgerald said, "We are excited to be working with Gilat to bring end-to-end satellite/terrestrial wireless networks to market. Gilat's well established global sales together with its turnkey project offering presents an excellent opportunity to reach new customers and markets. We believe that through this relationship we will be able to provide better value to these markets and customers."

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd. (Nasdaq:GILT) is a leading provider of products and services for satellite-based communications networks. The Company operates under three business units: (i) Gilat Network Systems ("GNS"), which is a provider of network systems and associated professional services to service providers and operators worldwide; (ii) Spacenet Inc., which provides managed services in North America for businesses and governments through its Connexstar service brand and for consumers through its StarBand service brand; (iii) Spacenet Rural Communications, which offers rural telephony and Internet access solutions to remote areas primarily in Latin America.

Gilat was founded in 1987 and has shipped over 670,000 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 16 sales and service offices 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.