Gilat Continues Its Business Expansion in Kazakhstan With 400 New Sites.

Business & Telecommunications Editors

PETAH TIKVA, Israel--(BUSINESS WIRE)--July 30, 2002

Astel to use DialAw@y IP(TM) telephony and Internet networks to

serve state postal service and pension center

Gilat Satellite Networks Ltd. (Nasdaq:GILTF) today announced

The two DialAw@y IP VSAT networks will be operated by Astel OJSC, one of Kazakhstan's largest telecommunication operators (telcos). Astel successfully deployed its first, 100-site DialAw@y IP network last year. The new networks will provide corporate telephony, fax, data, Internet, e-mail, e-post and e-government services to rural users across Kazakhstan. Deployment of the State Pension network is expected to be completed by the end of the third quarter, while the KazPost network is expected to be completed by the end of this year.

Alexey V. Vaganov, Marketing Director of ASTEL OJSC said, "In a region as vast as Kazakhstan, only VSAT technology can provide services to users in remote areas. Gilat has proven that its DialAw@y IP technology - with telephony, data and Internet on a single platform -- is ideal for our customers. This technology, combined with Gilat's excellent customer support and worldwide experience, results in a highly reliable solution."

Erez Antebi, Gilat's General Manager for Asia, Africa and Pacific Rim, said, "Our continued relationship with Astel - one of the country's largest telcos and Internet providers -- demonstrates our commitment to this growing market in Kazakhstan. The services provided by the VSAT networks, for both KazPost and the State Pension Center, will allow thousands of citizens to benefit from vital services to which they would not otherwise have had access."

The Kazakh Post Office network is the latest example of VSAT technology bringing government postal services to residents across a country. Similar applications provided by Gilat exist in China, Brazil and in the United States. The application of the United States Postal Service is one of the largest VSAT networks in the world, with some 11,000 sites already installed and with a potential to expand considerably.

DialAw@y IP is one of the only VSAT products capable of providing high-speed Internet connectivity and toll-quality telephony service on a single, low-cost platform. Each unit supports a PC/LAN connection and up to six telephone channels. It is a low-cost solution for the fulfillment of Universal Service/Access Obligations, Public Call Office requirements and small office/home office (SOHO) requirements for bundled telephony and Internet access.

DialAw@y IP networks are rapidly deployed, highly scalable and field upgradable. The remote equipment functions in extreme weather conditions, has a long lifespan and can be monitored from a distance. Ultra-low power consumption (less than 25W) enables the units to operate in remote locations that have minimal or no electricity, by incorporating a single-panel solar system or power generators.

In May, Gilat announced three additional deals in Kazakhstan with CJSC Kazakhstan Telecommunications, OJSC KazTransCom and CJSC NC KazMunayGas. With the addition of the new networks announced today, some 1,800 Gilat VSATs will be deployed throughout the country.

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, Skystar 360E and SkyBlaster* 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, following the execution of a definitive agreement and regulatory approval, Alcatel Space and SkyBridge, subsidiaries of Alcatel. Skystar Advantage(R), Skystar 360E(TM), 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. (*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.