China Satcom Completes Deployment of 1,000 Gilat SkyEdge VSATs; Broadband Satellite Terminals Power Rural Telephony Applications in China's Gansu Province and Inner Mongolia Autonomous Region.

PETAH TIKVA, Israel -- Gilat Satellite Networks, Ltd. (Nasdaq: GILTF), today announced that China Satellite Communications Corp. (China Satcom), one of the six basic telecommunications operators in China, has completed deployment of about 1,000 Gilat SkyEdge VSATs for rural telephony applications in Gansu Province and Inner Mongolia Autonomous Region. China Satcom is one of China's largest satellite operators.

Giora Reish, Gilat's Regional Vice President, Asia, said, "For over a decade, Gilat has built a strong reputation among China's largest telecom operators for providing public rural communication solution that is fully integrated with the Chinese public telephony network, combined with responsive local customer service. This solution connects Chinese vast rural population to public services available in urban areas. China Satcom was particularly impressed with SkyEdge's toll quality voice, efficient space segment utilization and low power consumption, which will make it possible to operate the VSAT network in the most economical manner."

Gilat's SkyEdge platform supports telephony and data application on a single hub located in Beijing. It provides seamless telephony connectivity to public communication switches of national carriers. It can be deployed quickly in any environment and can perform well in all types of weather conditions.

About China Satellite Communications Corp.

China Satcom is one of six basic telecommunications operators in China, China Telecom, China Net Com, China Mobile, China Unicom, China Satcom and CRC. China Satcom owns 31 provincial branches throughout China and operates under the leadership of the Ministry of Information Industry, the People's Republic of China. China Satcom is a newly established, state-owned backbone enterprise built according to the requirements of China's national telecom restructuring of 2001.

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd. (Nasdaq: GILTF) 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; (ii) Spacenet, which provides managed services for businesses and governments through its Connexstar service brand, 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 600,000 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 14 local offices and three service facilities 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. Visit Gilat at www.gilat.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.