Gilat Provides Two SkyEdge Hubs to Tatanet India; New Systems to Serve Financial Organizations, Corporations, Media Houses and Rural Areas.

PETAH TIKVA, Israel -- Gilat Satellite Networks Ltd. (NASDAQ: GILTF) announced today that it was chosen by Tatanet India, a division of Nelco Ltd., to provide two SkyEdge(TM) hubs located in Mumbai and thousands of SkyEdge IP VSATs. The hub deployment has already begun and an initial amount of VSATs were installed at customer locations throughout India.

Gilat's SkyEdge systems will operate over Extended C-band (XC) and Ku-band satellites. With these new systems, Tatanet can better serve the company's wide range of customers, which includes stock brokers, banks, corporate customers and media houses. SkyEdge's unique system topology combines Star and Mesh capabilities over the same platform and allows for the seamless addition of new applications, such as telephony.

The new systems are capable of the simultaneous handling of a multiple satellites network, traffic encryption and management of private networks. These capabilities allow Tatanet to use the same hub for various clients and applications, while securing the privacy of each client. In addition, the systems' advanced modulation schemes, Turbo Coding and 8PSK, allow for up to 30% more exploitation of the space segment as compared to the standard DVB-S modulation scheme. Thus, new systems enable Tatanet to further reduce its operational and capital expenses.

Mr. Zal, Engineer, Executive Director at Tatanet, said, "We were extremely impressed with the capabilities of the new SkyEdge platform. The platform's versatility allows us to offer a wide range of services to various customers and to meet the unique requirements of the market, ranging from the corporate and enterprise segments through to the SME/SOHO, POS, SCADA, stock broking and rural markets." Zal added, "Gilat's innovative solutions for incorporating Star, Mesh and telephony capabilities over a single platform coincide with our vision. They are the corner- stones for cutting-edge satellite communication technology."

Mr. Giora Reish, Gilat Associate Vice President, Sales and Marketing, Asia said, "We are very proud that Tatanet, a leading service operator in India, chose us to provide our SkyEdge networks. Gilat looks forward to addressing the Enterprise, SME and SOHO markets in India. We feel that this will be a huge opportunity for both companies."

About Tatanet

The Tatanet division of Nelco was founded in December 1995 primarily with a view to providing effective & reliable wireless broadband connectivity through VSATs to Tata Group of companies. Tatanet made a foray in the commercial market in the year 2003. Within a short span of time, Tatanet has made significant inroads in the existing VSAT market offering its services under the umbrella brand Tata Indicom, for comprehensive telecom solutions from the house of Tata's. The networking solutions from Tatanet address communication needs across all verticals such as the Automobile, Pharmaceuticals, Manufacturing and Distribution, FMCG, Banking, Finance and Insurance, Travel, Tourism and Hospitality, Media and event management.

With a robust infrastructure, an all India direct Customer support network, an effective escalation process, 24 - hour help desk facility, commitment for quality initiatives such as TBEM - Tata Business Excellence Model and TL 9000, and a team of handpicked professionals from the industry, Tatanet is clearly emerging as the fastest growing VSAT service provider in the nation. Visit Tatanet at www.tataindicomvsat.com

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 two business units: (i) Gilat Network Systems ("GNS"), which is a provider of network systems and associated professional services to service providers and operators and (ii) Spacenet, which provides managed services for businesses and governments through its Connexstar service brand, for consumers through its StarBand service brand and for rural communities through Spacenet Rural Communications.

Gilat was founded in 1987 and has shipped over 550,000 Very Small Aperture Terminals (VSATs) to more than 80 countries across six continents. Gilat's headquarters is located in Petah Tikva, Israel. The Company has 14 local offices and 3 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.