Countrywide Home Loans Selects Gilat Communications' TrainNet System For Interactive Distance Training.

PETACH-TIKVA, Israel--(BUSINESS WIRE)--July 29, 1999--

Gilat Communications, Ltd. (NASDAQ:GICOF) today announced that Countrywide Home Loans, Inc has selected its TrainNet(TM) integrated system for training employees at remote locations. 500 sites are slated for immediate implementation, with additional sites to be set up in the future. Spacenet Inc., a subsidiary of Gilat Satellite Networks Ltd. (NASDAQ: GILTF), will provide, manage and maintain a two way Very Small Aperture Terminal (VSAT) satellite communications network for Countrywide.

"As a technologically advanced organization with hundreds of branches across the United States, we were seeking a solution that will enable us to maintain a high level of training for our staff," said Kimberly Kemball-Cook, Senior VP at Countrywide. "Not only will it reduce time away from work, but the savings on transportation and accommodation makes it the ideal solution for our training needs."

In addition to reducing training-related travel time and expenses, the new TrainNet system is expected to enable Countrywide to leverage skilled instructors, increase productivity, and deliver timely corporate communications through the use of business TV programming.

"TrainNet was specifically designed to satisfy corporate training needs," says Shlomo Tirosh, chairman and CEO of Gilat Communications. "The advanced features of the TrainNet system coupled with our alliance with Spacenet ensure that Countrywide will receive a complete IDL network solution from a single source. TrainNet will enable Countrywide to simultaneously update thousands of employees at different locations from a single, central location - all without the extensive costs associated with traditional on-site training. It also translates into an ongoing relationship with employees while facilitating cost-efficient and just-in-time training."

TrainNet(TM) is the most advanced PC-based IDL training system available on the market today. It combines high quality live video with voice and data interaction, utilizing IP (Internet Protocol), e-mail and online testing capabilities. The Gilat Communications training system is an integral part of an end-to-end distance learning solution which will be deployed at Countrywide. The Gilat system runs over any IP network, and supports IP multicast utilizing a two-way very small aperture terminal (VSAT) satellite network.

Founded in 1969, Countrywide Home Loans, Inc is headquartered in Calabasas, CA. and is the nation's largest independent residential mortgage lender. A member of the S&P 500, the company has more than 550 offices and over 11,000 employees nationwide.

Gilat Communications, Ltd. ("Gilat") is a leading developer and provider of end-to-end interactive distance learning (IDL) solutions worldwide. Founded in 1990, the company provides a wide range of satellite-based communications services, including IP, private data, and voice communications networks and digital video broadcasting over IP multicast. Gilat's comprehensive IDL solutions allow corporations, banks, government agencies and academic institutions to create and conduct live as well as offline instructor-led or self-paced sessions utilizing personal computers, regular telephone sets, internet connections and any broadband communication channel.

Reflecting its growing North American customer base, the Company recently opened its North American headquarters in McLean, VA.

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 the Company 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 the Company's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for the Company'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 the Company's international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission.