Intelsat Selects Gilat Satellite Networks as Equipment Provider for Global Broadband Access Services Program

Intelsat to purchase at least US$10 million in Skystar 360E™ broadband VSAT equipment and services

Petah Tikva, Israel August 12, 2002 - Gilat Satellite Networks Ltd. (Nasdaq: GILTF) today announced it has been selected by Intelsat Global Service Corporation to provide broadband satellite communications equipment and services in the amount of at least US$10 million by the end of 2003.
The agreement calls for Intelsat to purchase the equipment from Gilat’s U.S. subsidiary, Spacenet Inc. – establishing Gilat’s Skystar 360E VSAT technology as the platform for the Intelsat Broadband Services. Intelsat initially plans to use Gilat technology to provision satellite-based broadband connectivity services to service providers in Latin America.

In December 2001 – prior to this agreement – Intelsat purchased a Skystar 360E central hub system and is using it to power the first deployment of its broadband service program in Colombia. Intelsat’s first equipment purchase under this new, $10 million agreement will be used to expand that hub.
Gilat is a worldwide leader in satellite networking technology, providing end-to-end enterprise networking, rural telephony and broadband Internet solutions to corporations, consumers and governments worldwide. Intelsat offers a complete range of wholesale global satellite-based services to some of the world’s largest telecom carriers, broadcasters, and corporate network and Internet service providers.

Ramu Potarazu, President and Chief Operating Officer, Intelsat Global Service Corporation, said, "Our goal here is to enable our customers, the service providers, to be successful in their own markets by providing them with a turnkey broadband via satellite solution. The successful use of the Gilat hub system to launch our broadband service in Colombia, as well as the opportunity to offer our customers a reliable platform, prompted us to pursue a long-term agreement to ensure our equipment needs are met in other major markets."

Gilat Chairman and Chief Executive Officer Yoel Gat said, "When combined with similar agreements we’ve recently reached with other leading broadband service providers, today’s announcement further solidifies Gilat’s position as the preeminent technology supplier to satellite-based broadband connectivity providers worldwide. This agreement also serves as a strong endorsement of our Skystar 360E satellite platform, which is extensively deployed across the United States under the Spacenet and Connexstar(SM) brands, as well as in other major countries around the globe. This ground-breaking relationship with Intelsat will help ensure we are positioned to capitalize on every possible sales opportunity worldwide."

About Intelsat Ltd.
Intelsat, Ltd. offers telephony, corporate network, video and Internet solutions around the globe via capacity on 24 geosynchronous satellites in prime orbital locations. Customers in more than 200 countries and territories rely on Intelsat satellites and staff for quality connections, global reach and reliability. For more information, visit www.intelsat.com.

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®, Skystar 360™, DialAw@y IP™ and FaraWay™ 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.

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