The University of Derby Selects Gilat Communications' TrainNet System for Innovative e-Learning Systems.

Business/Technology Editors

PETACH-TIKVA, Israel--(BUSINESS WIRE)--March 30, 2000

Gilat Communications, Ltd. (NASDAQ:GICOF) today announced that the University of Derby has selected its TrainNet(tm) interactive distance learning system to provide academic instruction for the over 7000 students registered at Derby's Israeli extension. The value of this order for Gilat is approximately $750,000 for the system plus about $500,000 annual service fees.

The system will include Gilat's e-learning solutions which will enable the University's instructors to conduct lessons from five teaching studios broadcasting from the U.K for thousands of projected hours of lessons annually to 25 classrooms in Israel. Lessons will be broadcasted with live high quality video and enable full voice and data interaction between the teacher and the students. As part of the solution, instructors will also receive a live video image of each classroom creating a true virtual classroom environment.

Gilat Communications Chairman and CEO Shlomo Tirosh, said, "Derby's e-Learning program is a ground breaking initiative in the area of e-learning technologies in higher education. We hope to see the expansion of this initiative for other interactive broadcasts of Derby's degree programs in Europe and around the world. We believe that by implementing the TrainNet learning platform, Derby will solidify its position as a leading institution of higher education and offer greater value to students studying around the world ."

Gilat's project with the University of Derby comes a short time after Gilat's announcement of its one-vendor solution. Gilat's turnkey e-Learning solution for Derby will supply not only e-learning technology but all the support structures necessary to make the project successful, including planning and implementing the communications network, designing and installing the delivery system, training Derby's instructors in how to manage their virtual classrooms, and maintaining the system once it is up and running. Derby will retain responsibility for the academic content and can enjoy Gilat's courseware development experience.

Prof. Waterhouse, Vice-Chancellor of the University of Derby, stated, "The University's venture into the world of e-learning will provide our students in Israel with the best lecturers that Derby University has to offer. In selecting Gilat Communications, we looked for a company that could offer a complete solution that we can grow with, expanding the number of classes and teaching hours as well as implementing other types of e-learning solutions when we will need them."

About the University of Derby

The Derby is recognized for being at the forefront of educational developments in the UK and has a strong track record of realizing the potential of new technology for learning. Derby's highly progressive approach was underlined in 1998 when the university merged with High Peak College, in Buxton, Derbyshire - a national first between a university and a college of further education. The merger has created a 25,000- strong student community of which 11,000 students are part-time.

International activity is seen as an integral part of the university`s culture of promoting individual achievement throughout life and Derby's established overseas franchise partnerships - most notably Israel continue to be strengthened to ensure the highest possible quality of provision.

Although a modern, progressive university, Derby's antecedents can nevertheless be traced to the 1880's, with its first degrees being awarded in 1886. The Israel Extension of the university of Derby operating in six centers around Israel - Efal, Rishon Le Zion, Kfar Saba, Haifa, Jerusalem and Beer Sheva - with more than 6,000 students, mainly business undergraduate students and also students pursuing MBA MA-HRM, MA Marketing, M.ED, and BA Tourism courses of study.

About Gilat Communications

Gilat Communications, Ltd. is a leading developer and provider of end-to-end interactive distance learning (IDL) solutions worldwide. TrainNet(tm), Gilat's comprehensive broadband 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. Gilat's recently acquired Allen Communication which has been providing advanced courseware development services and technology based authoring and design tools for almost 20 years while developing a customer base which includes more than 60% of the Fortune 500. Gilat also recently acquired LearnLinc Corporation, the world pioneer in live, collaborate Web-based training. LearnLinc's interactive e-learning systems are used by hundreds of corporations and organizations around the world. John Bryce Training, Gilat's IT training and content company, is the largest provider of IT training services in Israel and is authorized by, among other vendors, Microsoft, Novell, CA, Sun and Oracle. Founded in 1990, Gilat Communications also provides a wide range of satellite-based communications services, including IP, private data, and voice communications networks and digital video broadcasting over IP multicast.

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