Spacenet Signs New Contract with Deere & Company

Deere will convert to Skystar Advantage® VSAT network to link its dealer network throughout the United States and Canada

McLean, VA, August 12, 1999 - Spacenet Inc. has signed a new contract with Deere & Company to provide a Very Small Aperture Terminal (VSAT) satellite communications network to Deere's dealer network throughout the United States and Canada. This contract was previously referred to in the earnings press release issued by Gilat on May 13, 1999. Deere & Company, with 1998 revenues of $13.8 billion, is the world's leading producer of agricultural equipment.

Under the terms of the contract, Spacenet will replace the Clearlink® VSAT equipment installed at John Deere dealer locations and data centers with Gilat's Skystar Advantage VSAT system. Skystar Advantage will provide Deere with increased bandwidth capabilities and optimized TCP/IP applications support.

The network conversion is expected to be completed by the fourth quarter of this year. Spacenet will provide Deere with a comprehensive VSAT network solution including installation and maintenance services. Spacenet will operate the network from its Chicago shared hub station.

Deere is one of six Spacenet customers this year to contract for conversion from Clearlink to Skystar Advantage. Others are Wakefern/ShopRite, Schwan's Sales Enterprises, AT&T Fastar, American Farm Bureau Federation, and Conoco Inc.

About Deere & Company
Deere & Company (NYSE: DE), headquartered in Moline, Ill., is a multinational corporation doing business in more than 160 countries and employing 35,500 people worldwide. With 1998 revenues of $13.8 billion, Deere and Company is the world's leading producer of agricultural equipment and a major producer of industrial equipment for the construction, forestry, and public works markets, lawn and grounds care products for homeowners and commercial users, engines and other powertrain components, and replacement parts for its own products and those of other manufacturers. The company also provides financial services including credit, insurance, and managed-health-care plans. Deere & Company is on the World Wide Web at www.deere.com.

About Spacenet
With headquarters in McLean, Virginia, Spacenet Inc. is a wholly-owned subsidiary of Gilat Satellite Networks Ltd. of Petah Tikva, Israel. Spacenet provides a wide range of satellite communications networks and services to companies throughout North America. With the acquisition of Spacenet from GE Americom in December 1998, Gilat now offers a complete range of network services, including access to satellite transponder capacity, installation of network equipment, network monitoring and control, as well as maintenance and repair.
 
Spacenet Media Contact:
David Myers
Senior Vice President of Marketing and Corporate Development
(703) 848-1200
david.myers@spacenet.com