Variety Stores, Inc. extends contract with Spacenet for advanced satellite communications at 242 Roses and Maxway retail locations

McLean, VA, May 22, 2007 - Spacenet Inc. today announced that Variety Stores, Inc., a wholly-owned subsidiary of Variety Wholesalers, Inc., has extended its enterprise network satellite services contract. Variety Wholesalers, based in North Carolina, operates approximately 500 retail stores in the southeastern United States. Since 1992, Spacenet has provided network services to the company supporting its retail applications including point-of-sale polling and back-office applications. The Spacenet satellite network is being used at 242 Roses and Maxway retail locations.

Variety Wholesalers Senior Vice President of Information Systems Jerry Frucht said, “Spacenet provides an ideal VSAT platform to support the network requirements at our stores, and we have been extremely pleased with the quality of our satellite service over the past few years. With this contract extension, we will continue to benefit from having a cost-effective and reliable network solution that supports all of our critical retail applications.”

Spacenet President and Chief Operating Officer Glenn Katz said, “Spacenet is delighted to continue its successful relationship with Variety Stores, Inc. by extending its services contract. With this extension, Variety Stores can leverage the existing network infrastructure already in place at its Roses and Maxway retail locations. Spacenet looks forward to meeting the company’s current and future application requirements for its stores.”

About Variety Wholesalers

Variety Wholesalers, Inc. is a closely held North Carolina corporation with principal corporate offices located in downtown Henderson, North Carolina. Variety Stores, Inc. (formerly "Rose's Stores, Inc."), is the wholly-owned subsidiary of Variety Wholesalers, Inc. The corporation operates approximately 500 retail stores in 14 states in the southeastern United States. Visit http://www.vwstores.com/ for more information.

About Spacenet®
Founded in 1981, Spacenet Inc. is a leading provider of high-performance satellite and hybrid terrestrial networking solutions for business, government and home/small office customers in the United States and worldwide. Spacenet has a longstanding tradition of industry leadership and innovation, and today serves more than 100,000 network endpoints for customers including many Fortune 500 companies and major government agencies. Spacenet's services include its custom satellite/hybrid network solutions for enterprise and government; Connexstar TM VSAT services for primary, backup and disaster recovery networks; and StarBand® broadband Internet by satellite. Spacenet is based in McLean, Virginia, and operates its own end-to-end services infrastructure including network management, field services and teleport facilities in McLean; Atlanta, Georgia; and Chicago, Illinois. Spacenet is a wholly owned subsidiary of Gilat Satellite Networks Ltd. (Nasdaq: GILT). 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