Bharti Broadband Networks Ltd. Selects Gilat For VSAT Satellite Communications Network to Provide Broadband Internet Service to Businesses in India.

Business & Technology Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--June 19, 2001

Field-proven SkyBlaster(TM) network will bring two-way,

high-speed Internet access to corporate and SOHO markets

Gilat Satellite Networks Ltd. (Nasdaq:GILTF) today announced it has been selected by Bharti Broadband Networks Ltd. to provide a 500-site high-speed satellite communications network.

Bharti Broadband is expected to use the two-way SkyBlaster Very Small Aperture Terminal (VSAT) network to provide always-on Internet access to corporate and small office/home office (SOHO) customers in India.

Bharti Broadband is part of the Bharti Group, one of India's leading providers of telecommunications services. Bharti Broadband's use of the SkyBlaster network represents a pioneering deployment of a broadband, two-way, DVB-based satellite Internet service in India. Network implementation has begun and is expected to be completed within three months.

Bharti Broadband Chief Executive Officer Ashok Juneja said, "VSAT is by far the fastest method of rolling out dependable, high-speed Internet service to large numbers of corporate and SOHO customers, and it is especially attractive to those outside major metro areas who do not have access to any other broadband solutions. We expect to eventually make this service available on a large scale in India. We chose Gilat because of its reputation for VSAT technology leadership as well as its successful experience in providing technology to the StarBand Communications satellite broadband service in the United States."

This contract with Bharti Broadband represents the latest of many VSAT networks Gilat provides to Indian businesses, the largest of which is a 3,000-site network for the National Stock Exchange of India. Gilat technology also powers consumer and SOHO Internet services at more than 30,000 sites in the United States and Latin America.

Erez Antebi, Gilat's Vice President and General Manager for Asia, Africa and Pacific Rim, said, "This agreement is consistent with our goal of meeting the VSAT equipment needs of leading satellite broadband service providers worldwide, as well as continuing our leadership in the Indian VSAT market."

SkyBlaster is an interactive satellite networking solution designed for IP applications. It combines industry-standard Digital Video Broadcast (DVB) technology with Gilat's inbound satellite access technology to provide high-performance, cost-effective, two-way connectivity for a wide array of content delivery and other multicast and interactive applications. SkyBlaster's broadband satellite platform provides content delivery speeds capable of scaling up to 52.5 Mbps, with a high-speed, always-on 153 kbps satellite return channel.

About The Bharti Group

The Bharti Group has restructured its Internet, VSAT and broadband operations to provide a stronger focus on the new challenges of dynamic market requirements and ensure the highest standards of service to customers. The proposed merger of four Bharti companies - Bharti Broadband Internet, Bharti Broadband (VSAT), Bharti Broadband and their Holding Company Bharti Telespatiale - is expected to come into effect later this year. The new company, Bharti Broadband Networks Ltd., will be a wholly owned subsidiary of Bharti Televentures (where Bharti, with 65 percent equity and SingTel, with 20 percent equity, are the main shareholders). In the meantime, the operations of these companies have been coalesced to address the market in a unified manner and to be the singular delivery platform for Internet, VSAT and broadband initiatives, offering a menu of integrated solutions and services to enterprise customers (large corporations, SMEs and SOHOs) and home consumers across different market segments.

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc., Gilat Europe and Gilat Latin America, is a leading provider of telecommunications solutions based on VSAT satellite network technology. 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. Gilat is a joint venture partner, with Microsoft Corp., EchoStar Communications Corp. and ING Furman Selz Investments, in StarBand Communications Inc., America's first consumer, nationwide, always-on, two-way, high-speed satellite Internet service provider. StarBand is based in McLean, Va. SkyBlaster(TM), 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 and StarBand at www.starband.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.