Gilat successfully upgrades broadband Internet and telephony services according to modified agreements with Colombian Ministry of Communications

– Rapid deployment at more than 1,300 sites provides millions of rural citizens with better services than ever before –

Petah Tikva, Israel, August 6, 2009 – Gilat Satellite Networks Ltd. (Nasdaq: GILT) today announced that its Spacenet Rural Communications (SRC) business unit has successfully deployed a Gilat SkyEdge II broadband satellite communications network at more than 1,300 sites for the Colombian Ministry of Communications.

The new network sites are comprised of Community Internet Centers and Telecenters, each of which is equipped with computers, telephones, printers, scanners, faxes and web cams, all provided by Gilat. Each site offers broadband Internet connectivity and telephony services enabled by the SkyEdge II network. Some of the sites also include classrooms to provide citizens with audio-visual instruction. Gilat also provides training and free hours of Internet use to several communities.

The SkyEdge II VSAT network delivers broadband Internet services to remote areas of Colombia, enabling citizens to benefit from email, fast web searches, streaming video content, e-commerce, social networking, and research capabilities – services that were not available to them before this project.

Some of the sites also provide toll-quality telephony to rural populations, based on Gilat’s VSAT technology, enabling the country’s remote citizens to stay in touch with friends and family worldwide.

The Colombian Ministry of Communications’ COMPARTEL projects, awarded to Gilat in 1999 and 2002, were initiated to serve more than five million rural citizens with affordable access to reliable voice communications and high-speed Internet service. Following a long dialogue between COMPARTEL and Gilat on how to update the contract, in December 2008, the parties signed an addendum relating to the Compartel projects that modified the operational milestones. The new milestones included the upgrade of technology for existing and new sites as well as the removal of thousands of telephony sites that were no longer needed or used by the rural population in Colombia. This agreement enabled the government and Gilat to redirect the project’s resources according to the actual needs of rural communities. The SkyEdge II network was successfully deployed in a timely manner, under the new agreements.

“By integrating a variety of technologies, Gilat has delivered a robust solution that exceeded the established requirements. Gilat’s pre-deadline deployment of the network reflects its commitment to quickly provide new communication services to the country’s most isolated regions,” said Colombian Vice Minister of Communications, Daniel Medina.

Medina added, “The coordination between Gilat and COMPARTEL in deploying the network will ensure that citizens in our most isolated regions will have access to information technologies and communication services. This represents a significant contribution by the Ministry of Communications to improve the quality of life for Colombia’s citizens.”

Elli Yaniv, CEO of Spacenet Rural Colombia, said, “Our long, successful support of COMPARTEL has helped provide citizens in Colombia’s remote communities with access to the world’s information and educational resources. Our locally based teams look forward to continuing our dedicated support of the COMPARTEL program to bring advanced communications services to a greater number of communities nationwide.”