CHSI Selects Spacenet to Provide VSAT Satellite Communications Network to 500 Pharmacies Nationwide

Skystar Advantage® satellite broadband networking solution will help CHSI provide "big chain" efficiencies to independent and small-chain pharmacies

McLean, VA, February 2, 2001 - Spacenet Inc. today announced it has begun implementation of CHSI Corporation's high-speed satellite communications network at independent and small-chain pharmacies nationwide. The network is expected to reach a minimum of 500 sites. This agreement was originally announced in Gilat's November 13, 2000 earnings press release.

CHSI is an Application Service Provider (ASP) to America's pharmacy industry. The company provides integrated technology solutions that enable independent and small-chain pharmacies to obtain certain functionality and information access enjoyed by large pharmacy chains.

Gilat's Skystar Advantage Very Small Aperture Terminal (VSAT) network provides the high bandwidth capabilities, persistent connectivity and Internet Protocol (IP) support needed for CHSI clients to utilize pharmacy adjudication, credit authorization, mail-order delivery and enterprise-wide Internet access applications.

"Spacenet's VSAT solution allows us to provide our clients with high-performance, highly reliable access to our pharmacy applications. The nationwide coverage and rapid deployment capability enable us to provide service to clients everywhere, even in the most remote, rural locations," said CHSI's Chief Executive Officer Michael Busch.

"In addition, the high-bandwidth and advanced capabilities offered by Spacenet's solution enable us to offer streaming video and other advanced applications to our clients. The combination of superior support for web-based applications, nationwide coverage and favorable economics made Spacenet the clear choice for serving our clients," Busch added.

David Shiff, Spacenet's Vice President of Sales and Marketing, said, "More and more, ASP services are becoming dependent on persistent broadband connectivity. Fast, reliable and cost-effective connectivity for web applications is critical to the success of these businesses. The independent pharmacy market stands to benefit greatly from CSHI's services and we are very pleased to have been selected to provide the connectivity for their business."

Network implementation is expected to be completed within the next 12 months. Spacenet's VSAT network solution for CHSI includes turnkey installation of all VSAT remote site equipment, as well as comprehensive, turnkey network operations and field maintenance.

About CHSI
CHSI, an Illinois-based Application Service Provider with offices in Chicago and Arizona, provides the retail pharmacy industry with Internet-based services that enable its clients to increase revenues, improve store profitability and enhance services to their customers.

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 two-way, satellite-based, broadband networking solutions for a wide range of organizations throughout North America. These solutions include provision of all equipment, bandwidth, implementation and ongoing network and field support on a full turnkey, outsource basis. Visit Spacenet at www.spacenet.com.

Spacenet Media Contact:
David Myers
Senior Vice President of Marketing and Corporate Development
(703) 848-1200
david.myers@spacenet.com