Mongolia's Incomnet Selects Gilat's SkyEdge Broadband Satellite Network for Nationwide Telephony and Data Connectivity.

VSAT platform will support data networking requirements of government agencies and bring reliable telephony to rural citizens

PETAH TIKVA, Israel -- Gilat Satellite Networks Ltd. (Nasdaq:GILT) today announced it will provide Incomnet with a Gilat SkyEdge broadband satellite communications network to serve end users throughout Mongolia. Incomnet is one of Mongolia's largest telecommunications service providers.

Incomnet will use the new VSAT network to provide toll-quality telephony to rural citizens, meeting its Universal Service Obligations. The network will also provide interactive data networking to selected Mongolian government agencies and businesses, particularly those in the financial-services sector. Incomnet is a long-standing Gilat customer, having deployed Gilat VSAT networks nationwide since 2001.

"After evaluating competing VSAT offerings, we determined that Gilat's SkyEdge network best met our technology requirements for Mongolia's demanding telephony and data applications," said Incomnet CEO Dr. Sanjaa Ganbaatar. "We expect that our ongoing relationship with Gilat will help us build our customer base and continue to provide superior telecommunications services. In the future, we expect to deploy Gilat's SkyAbis satellite-based cellular backhaul solution to meet the needs of Mongolia's cellular operators."

Arie Rozichner, Gilat's regional vice president, Eurasia, said, "This new contract with Incomnet demonstrates their continued confidence in our advanced satellite communications technology and their satisfaction with our dedicated customer support. We look forward to a long relationship with Incomnet and the opportunity to bring the most efficient, reliable communications systems to the citizens and government agencies of Mongolia."

Gilat's SkyEdge is a satellite communications system that delivers high-quality voice, broadband data and video services over a powerful unified system. SkyEdge represents Gilat's extensive knowledge base and field-proven product offering, acquired through two decades of experience. SkyEdge's flexible architecture and efficient space segment utilization make it an ideal platform for operators and service providers.

About Incomnet

Incomnet was founded in 2001 to deploy broadband VSAT networks throughout Mongolia for public telephony and interactive data networking applications. The Company also provides IT consulting services and cooperates with local and international consulting organizations. For more information, please visit www.icn-mn.net.

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd. (Nasdaq: GILT) 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 worldwide; (ii) Spacenet Inc., which provides managed services in North America for businesses and governments through its Connexstar service brand and 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 670,000 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 16 sales and service offices worldwide. Gilat markets the SkyEdge [TM] and SkyEdge II Product Family which includes the SkyEdge Pro, SkyEdge IP, SkyEdge Call, SkyEdge DVB-RCS and SkyEdge Gateway. In addition, the Company markets numerous other legacy products.

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.