CABLE & WIRELESS PANAMA SELECTS GILAT FOR BROADBAND NETWORK.

Gilat Satellite Networks Ltd. (Nasdaq:GILT), Petah Tikva, Israel, has been chosen by Cable & Wireless Panama (C&W), Panama's largest telecommunications operator, to provide a SkyEdge II high-performance network that will be used to deliver broadband Internet to hundreds of schools in remote areas nationwide.

As part of the solution, Gilat will provide equipment, technical support, assisted network operations, and training. The new network will enable students in Panama's remote areas to enjoy an enhanced educational experience through interactive learning programs and other Internet applications.

C&W is already using a Gilat SkyEdge network, which was deployed in recent years, to provide telephony and Internet services to more than 450 remote Panamanian communities.

"The telecom industry in Panama is highly competitive. We have continually upgraded our communications infrastructure to stay at the forefront of the industry. Our experience proves that Gilat provides the ideal combination of superior technology and thorough support," said Pedro Diaz, Executive Vice President of Sales, Cable & Wireless Panama. "By featuring highly efficient bandwidth utilization, Gilat's SkyEdge II platform will enable us to deploy the most economical solution, over the long term, while offering our customers reliable, high quality services."

Guy Moskowitz, Gilat Network Systems' Executive Vice President of Sales, said, "Gilat's SkyEdge II network will enable C&W to benefit from the platform's highly efficient use of the satellite link while providing an advanced, high-performance and reliable solution to Panama's schools. We are pleased to once again partner with C&W, this time to enhance the quality of education for students throughout the country."

Gilat's SkyEdge II is a multi-service platform enabling the delivery of high-quality voice, broadband data and video services for diverse environments including enterprises, rural networks, cellular backhaul and government network applications. SkyEdge II is a standards-based system using DVB-S2 and DVB-RCS. With better efficiencies and full adaptivity for both the inbound and outbound channels, it provides higher performance that serves the growing requirements of end-users. Gilat's diverse portfolio of SkyEdge II VSATs are all supported by a unified platform, offering service providers the most suitable product for their application needs as well as the flexibility to evolve their networks. The newest addition to Gilat's SkyEdge II portfolio is NetEdge(TM), a dedicated solution for multi star networks, specifically designed to meet the needs of corporations and cellular backhaul applications.

About Cable & Wireless

Cable & Wireless is one of the leading international communications companies in the world. It began operations in 1860 in London, England, from where it positioned itself as one of the main providers of global telecommunications in the world. Today, Cable & Wireless International is the leader in many of the markets where it operates; including Panama. On May 20, 1997, Cable & Wireless plc acquired a 49% stake in Panama's state-owned telecommunications company, INTEL, S.A. for US$652 million. Cable & Wireless Panama is the only telecommunications company with presence in all of the Panamanian territory, including rural areas inaccessible by means of conventional transportation, and remote indigenous communities. The company's installation of over 400,000 fixed lines and more than 11,000 public telephones in all of the Republic of Panama comprises a business vision focused on today's enormous opportunities as well as future growth, without neglecting the traditional business segments.

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, a provider of network systems and associated professional services to service providers and operators worldwide; (ii) Spacenet Inc., a provider of managed services in North America to the business and government segments; and (iii) Spacenet Rural Communications, a provider of rural telephony and Internet access solutions to remote areas primarily in Latin America.

Gilat was founded in 1987 and has shipped over 750,000 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 a full line of high-performance VSATs under the SkyEdge(TM) and SkyEdge II Product Family.