Gilat Satellite Networks Ltd (GILT)

[B7$4]

GILT News - Gilat to Receive Over $24 Million in Proceeds From the Sale of Its Shares in the Merger of Ingenix and Axolotl

PETAH TIKVA, Israel, Aug. 17, 2010 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq:GILT) today announced that it is to receive more than $24 million in cash proceeds from the merger of Ingenix and Axolotl. Ingenix, a leading health information technology and services company announced on August 16, 2010 that it is acquiring Axolotl, a leading provider of health information exchange services. As part of Gilat's investment policy, Gilat invested approximately $4.5 million in Axolotl over 10 years ago. During the global economic downturn of 2000 and 2001, Gilat wrote off this investment.

Under the terms of the merger agreement, Gilat is to receive approximately $24 million immediately and subject to certain standard escrow conditions, may receive an additional $3 million in one year.