Spacenet to Provide The Steak 'n Shake Company with Broadband Satellite Communications Network

Spacenet's Connexstar(SM) service powers critical applications for leading restaurant chain

McLean, VA, Nov. 8, 2002 - Spacenet Inc. today announced it has been selected by The Steak 'n Shake Company to deploy a broadband satellite-based IP network at a minimum of 350 Steak 'n Shake restaurant locations nationwide.

Spacenet's Connexstar broadband satellite service will provide Steak 'n Shake with commercial grade, high-speed, always-on connectivity for critical point-of-sale applications.

The installation of the Connexstar service is part of Steak 'n Shake's continuing effort to improve performance through technology in its restaurants. The Company will use the service to provide management with timely information and new management tools.

"Steak 'n Shake is committed to providing the best possible guest service through hospitality," said Vic Yeandel, Steak 'n Shake's Vice President of Marketing and Investor Relations. "Improved data connectivity will improve the flow of information and give management access to web-based tools for improving performance. We expect this improvement to result in a better experience for our guests. After looking at a variety of connectivity solutions, we found that Spacenet's Connexstar service offered the most cost-effective solution for our needs."

The Steak 'n Shake Company will utilize Spacenet's Connexstar 150 service offering. This service is specifically designed to meet the requirements of retail enterprises where connectivity needs are primarily driven by IP-based point-of-sale applications. In contrast to many competing broadband offerings, Connexstar eliminates the need for remote router devices, is available everywhere throughout the US and offers very favorable economics. It is also scaleable, allowing customers to expand their bandwidth over time as new applications are brought on line, without changing or upgrading the remote site hardware.

Nick Supron, Spacenet's President and CEO, said, "As more and more restaurants move to adopt new applications and automation, affordable on-line connectivity has become critical. Steak 'n Shake joins the growing list of restaurants that have adopted Connexstar to serve their POS and back-office redundancy needs. We're extremely pleased to add Steak n Shake to our list of customers and we feel their decision to deploy our Connexstar service is a clear indication of how well suited this service is to the needs of this market."

About The Steak 'n Shake Company
Steak 'n Shake currently has system wide sales of approximately $600 million from over 400 restaurants in 19 states. Steak 'n Shake is a full service, casual dining restaurant serving a core menu of their famous Steakburgers, thin 'n crispy French Fries and old fashioned hand-dipped Milk Shakes. Menu variety includes sandwiches, such as the Turkey Melt and the Grilled Chicken Breast, as well as Chili, home style soups, fresh salads, a variety of desserts and breakfast. All of the food is prepared to the customer's order and served by friendly, well-trained employees. Steak 'n Shake restaurants feature full-service dining areas, counter service and drive-thru windows. Restaurants are open 24 hours a day, seven days a week.

Background on Spacenet's Connexstar service
Powered by Gilat's 360E VSAT platform, Connexstar provides commercial-grade, always-on high-speed Internet connectivity anywhere in the continental United States - with the ability to add high-speed credit authorization, commercially licensed TV and music, distance learning, content multicasting and secure private networking services using the same remote site hardware. Connexstar services include business-grade installation, integrated routing functionality, depot maintenance and second-level help desk support. A variety of on-site field service options - such as 24x7 help desk and same day, 7x12 on-site maintenance - are also available to meet specific business requirements. Embedded TCP/IP implementation coupled with Gilat's industry-leading Internet browsing acceleration technologies provides high performance and enhanced user experience. Learn more about Connexstar at www.connexstar.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 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