Gilat Announces New Customers in Korea, Mongolia and the Philippines; New Skystar Advantage and DialAw@y IP Networks Comprise More Than 560 Sites.

Business Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--June 18, 2002

Gilat Satellite Networks Ltd. (Nasdaq: GILTF) today announced it has signed contracts with three Asian companies for the deployment of broadband satellite communications networks at more than 560 sites.

Gilat is providing Korea Telecom International (KTI) with 345 units of its Skystar Advantage(R) VSAT product. The two-way, Internet Protocol (IP)-optimized VSAT equipment is expected to enable KTI to deploy a wide range of interactive data and web-based applications for the education and corporate markets. As a shared-hub operator, KTI expects to use the Skystar Advantage network initially to provide private education centers with interactive distance learning services that will enable transmission of educational materials and lectures from a central location to hundreds of remote sites. KTI also expects to use the VSAT network to provide corporations with enterprise-wide Internet access, IP-based interactive data and corporate training applications. KTI, based in Seoul, is a wholly owned subsidiary of Korea Telecom.

Radio Communications of the Philippines, Inc. (RCPI) - in partnership with First VSAT and LAN Resource, Inc. - has selected Gilat for a 159-site DialAw@y IP(TM) fixed rural satellite telephony network for use in public call offices (PCOs) throughout the Philippines. The VSAT network also includes the provision of high-speed Internet connectivity.

Gilat was also selected by Incomnet LLC to provide a two-way, DialAw@y IP network for use throughout independent Mongolia. The network, which includes a hub station and an initial order of 60 VSAT terminals, is expected to be used by Incomnet to provide consumers and businesses with telephony and high-speed Internet service in the financial services, mining, tourism, retail petroleum and government markets.

DialAw@y IP is one of the only VSAT products capable of providing high-speed Internet connectivity, fax and toll-quality telephony service on a single, low-cost platform. Each unit supports a PC/LAN connection and up to six telephone channels.

Erez Antebi, Gilat's Vice President and General Manager for Asia, Africa and Pacific Rim, said, "These new contracts demonstrate Gilat's continued expansion of its business in Asia. Tens of thousands of users throughout Asia now have access to Gilat VSAT technology in the enterprise computing, rural telephony and high-speed Internet markets."

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc. and Gilat Latin America, is a leading provider of telecommunications solutions based on Very Small Aperture Terminal (VSAT) satellite network technology - with nearly 400,000 VSATs shipped worldwide. Gilat markets the Skystar Advantage, DialAw@y IP, FaraWay, 360E and SkyBlaster(a) 360 VSAT products in more than 70 countries around the world. 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. The Company is a joint venture partner in SATLYNX, a provider of two-way satellite broadband services in Europe, with SES GLOBAL and, upon closing and following regulatory approval, Alcatel Space and SkyBridge, subsidiaries of Alcatel. 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. ((a)SkyBlaster is marketed in the United States by StarBand Communications Inc. under its own brand name.)

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.