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Spacenet Awarded Multi-Year Contract with One of the World’s Leading Delivery Service Organizations

Spacenet Inc.®, a wholly owned subsidiary of Gilat Satellite Networks Ltd. (Nasdaq: GILT), and a leading provider of managed network and data security services announced today that it has been awarded a 5-year base contract by one of the world’s leading delivery service organizations to upgrade and provide network connectivity to more than 5,700 locations. The contract, valued at over $20 million, includes an option to extend the 5-year base period of performance for three further periods of 3-years for a total potential contract period of 14 years.

The contract is part of a major initiative to reduce overall operating costs at the delivery service organization, while improving the user experience at each location. The contract includes serving more than 1,900 sites with broadband connectivity and more than 3,800 sites with satellite-based VSAT technology. “For more than a decade, Spacenet has provided a variety of managed network services to this organization”, said Spacenet President and CEO, Glenn Katz. “Our knowledge and experience with satellite-based services long enabled our client to provide high-speed connectivity at locations out of reach of terrestrial networks. Now, like many organizations having geographically disparate locations, this organization is embracing the expansion of cost-effective broadband options all across the country and has selected Spacenet as one of its vendors to achieve its goals. Our broad portfolio of network offerings, industry relationships and technology-neutral approach enables Spacenet to offer optimal solutions on a site-by-site basis.”

Spacenet began its work on the contract upon signature, and expects its client to realize benefits in cost savings and improved throughput, together with an overall long-term lower total cost of network ownership. For more information on how your organization can achieve similar benefits using Spacenet’s Managed Network Services, please visit Spacenet at www.spacenet.com, email [email protected] or call 1-866-480-2263.

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About Spacenet®

Since 1981, Spacenet Inc. has designed, implemented and managed some of the largest communications networks for US-based business, industrial and government customers. Spacenet has a longstanding tradition of industry leadership and innovation, and today manages communications at more than 160,000 locations for customers including many Fortune 500 companies and major government agencies.

Headquartered in McLean, Virginia, Spacenet is a wholly owned subsidiary of Gilat Satellite Networks Ltd. (Nasdaq: GILT). Visit Spacenet at http://www.spacenet.com

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd (NASDAQ, TASE: GILT) is a leading provider of products and services for satellite-based broadband communications. Gilat develops and markets a wide range of high-performance satellite ground segment equipment and VSATs, with an increasing focus on the consumer and Ka-band market. In addition, Gilat enables mobile SOTM (Satellite-on-the-Move) solutions providing low-profile antennas, next generation solid-state power amplifiers and modems. Gilat also provides managed network and satellite-based services for rural telephony and Internet access via its subsidiaries in the United States, Peru and Colombia.

With over 25 years of experience, and over a million products shipped to more than 85 countries, Gilat has provided enterprises, service providers and operators with efficient and reliable satellite-based connectivity solutions, including cellular backhaul, banking, retail, e-government and rural communication networks. Gilat also enables leading defense, public security and news organizations to implement advanced, on-the-move tactical communications on board their land, air and sea fleets using Gilat's high-performance SOTM solutions. For more information, please visit us at www.gilat.com

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