Gilat Satellite Networks Ltd (GILT)

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Gilat Signs Agreement with Sputnik Telecommunications Entertainment Company -Russian Federation-
Tuesday June 28, 9:01 am ET


PETAH TIKVA, Israel--(BUSINESS WIRE)--June 28, 2005--Gilat Satellite Networks Ltd. (Nasdaq:GILTF - News) announced today that it has signed an agreement with Sputnik Telecommunications Entertainment Company (STEC.COM) to deploy Gilat's SkyEdge(TM) hub in Moscow and VSATs throughout the Russian Federation. Deployment is expected during 2005.
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This new system will enable network online gaming for STEC.COM's customers, and will, in addition, serve as an independent network within STEC.COM's internal organization to facilitate the transfer of data, video conferencing, voice over IP (VoIP) and Broadband IP. The system's ability to operate at high bit rates will enable improved utilization of existing satellite bandwidth. Further, the versatility of the SkyEdge(TM) topology will allow future expansions of the system without changing the current infrastructure. The SkyEdge(TM) system will upgrade the existing Gilat SkyStar 360E hub currently being operated by STEC.COM.

The new SkyEdge(TM) system, to be supplied to STEC.COM, is a two-way satellite-based solution. The system includes a hub and three types of VSATs: the SkyEdge Pro, SkyEdge Gateway and SkyEdge IP. The SkyEdge(TM) Pro allows for bundling of interactive data, broadband IP, video applications and public and corporate telephony, as well as supporting IP multicast applications. While the SkyEdge(TM) Gateway will permit STEC.COM to extend its communication capabilities to reach remote areas with digital telephony, the SkyEdge IP will enable the transfer of IP data on-demand. The SkyEdge(TM) system offers telephony applications, value added functions and data and telephony mesh capabilities, especially developed by Gilat for the Russian market and specifically tailored to the versatile structure of Russian organizations and their specific needs.

Mr. Victor Kryssiakov, General Director of STEC.COM said, "We continue to nurture our cooperation and partnership with Gilat. With the purchase of the SkyEdge system, we are entering a new level of telecommunications development for a variety of applications and needs both in our country and in our business. We now have the opportunity to offer the Russian market the latest cutting-edge technologies and world class solutions.

Arie Rozichner, Gilat's Regional Vice President for Eurasia, said, "We are pleased that STEC.COM decided to upgrade its technological platform - and to choose Gilat technology again. This proves STEC.COM's confidence in Gilat's ability to provide its clients with next-generation technology, reliable products and excellent support. STEC.COM is a very highly valued customer of ours in the Russian Federation."

The SkyEdge system's new technologies have already led to an important contract between STEC.COM and The Federation of Jewish Communities in Russia, which will allow for the distribution of real-time cultural content to communities' members throughout the country. "We are confident that by upgrading its technological platform, STEC.COM will be able to provide a new set of advanced telecommunication services to all its customers," said Rozichner. "We are also glad to be continuing our mutually fruitful cooperation with STEC.COM, one of the most technologically adept satellite operators in the Russian Federation."

About STEC.COM

STEC.COM is a major satellite communications operator in Russia, and the country's leader in constructing VSAT-based communication systems. Using Gilat Satellite Networks' Skystar 360E technology, STEC.COM creates corporate networks for the largest Eurasian gambling system, Jackpot, as well as for exchequer organizations, a fuel and energy complex, educational establishments, shops and oil companies.

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