Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Lawsuit Against Gilat Satellite Networks, Ltd. "Gilat" and Certain of Its Officers and Directors.

Business Editors and Legal Writers

WASHINGTON--(BUSINESSWIRE)--March 20, 2002

The following notice is issued by the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C., on behalf of its client, who filed the first lawsuit against Gilat in the United States District Court for the Eastern District of Virginia, where Gilat's U.S. headquarters are located, on behalf of investors who purchased Gilat securities between August 14, 2000 and March 9, 2001.

Other class action suits were thereafter filed in New York on behalf of purchasers of Gilat between November 13, 2000 and October 2, 2001, so there is an overlap of the two cases. The cases will eventually be coordinated and/or consolidated in one federal court, most likely Virginia.

The complaint charges Gilat and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that the defendants knew or recklessly disregarded, yet covered up the fact, that the demand for and acceptance of Gilat's products and the products of its subsidiary, StarBand Communications, Inc., were greatly overstated, that Gilat was having difficulty manufacturing and selling its chief product, Very Small Aperture Terminal (VSAT) profitably, that Gilat's purported gross profit margins were false, that Gilat was materially understating its costs and expenses and that Gilat, accordingly, would have to take massive charge-offs, numbering in the hundreds of millions of dollars in the future. Plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements caused Gilat's stock price to become artificially inflated, inflicting enormous damages on investors.

If you purchased Gilat securities during the various periods covering the time frame of August 14, 2000 through October 2, 2001, inclusive, you may, no later than May 10, 2002, move to be appointed as a Lead Plaintiff.

The plaintiff's counsel -- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. -- has significant experience in prosecuting investor class actions and actions involving financial fraud. The firm has offices in Washington, D.C., Seattle, and New York and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm's website at www.cmht.com.

The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over one billion dollars.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.

or

Lisa Polk

Cohen, Milstein, Hausfeld & Toll, P.L.L.C.

1100 New York Avenue, NW

Suite 500 - West Tower

Washington, DC 20005

Telephone: [phone] or 202-408-4600

E-mail: [e-mail] or [e-mail]