Feb 04, 2004

Gilat Selected to Deploy Africa’s First Modernized Postal System Kenyan postal offices will provide communications services such as Internet access, email,fax and printer

Petah Tikva, Israel, February 4, 2004 – Gilat Satellite Networks Ltd. (Nasdaq: GILTF) today announced that its subsidiary, Spacenet, has been selected by Posta Kenya to supply a satellite-based communications DialAw@y IP network, linking Kenyan postal offices throughout the country

Gilat’s DialAw@y IP platform will be installed in the postal offices, each servicing a LAN connecting three PCs. While one PC will serve the Postal Office manager’s mail, the other two will provide Internet, email, fax and printer services. The Internet will be accessed through a JAMBONET connection provided by Telkom Kenya Ltd. using Gilat’s unique prepaid Internet system. Installation is expected to be completed in the first quarter of 2004.

The initiative behind this ambitious project is the Kenyan Ministry of Transportation and Telecommunications. The network is the first of its kind in Africa, in terms of using satellite-communications equipment to modernize a country’s postal system.

Avihu Bergman, Gilat’s Executive Vice President for Sales said, “This contract represents a continuation of Gilat’s success in Africa. We are excited that Gilat technology, which has proven itself in several postal applications around the world, will also play an integral role in the provision of modern communications services in Kenya through the Kenya Post project.”

Post Master General, Mr. Dan Ameyo said, “With Posta Kenya’s deployment of this advanced satellite-based VSAT system, the postal offices throughout the country will take on the added function of becoming the hearts of the communities in which they are located. With postal offices everywhere in Kenya fitted with this exciting technology, the communication gaps and digital divide will begin to close as Kenyans everywhere will now have easy access to the Internet and other communications services.”

The Kenya Post Office network is the latest example of communication technology bringing government postal services to residents countrywide. Similar applications provided by Gilat exist in Kazakhstan, China, Brazil and in the United States. The application of the United States Postal Service is one of the largest VSAT networks in the world, with some 12,000 sites already installed.

DialAw@y IP is one of the only VSAT products capable of providing high-speed Internet connectivity and toll-quality telephony service on a single, low-cost platform. Each unit supports a PC/LAN connection and up to six telephone channels. It is a low-cost solution for the fulfillment of Universal Service/Access Obligations, Public Call Office requirements and small office/home office (SOHO) requirements for bundled telephony and Internet access.

DialAw@y IP networks are rapidly deployed, highly scalable and field upgradeable. The remote equipment functions in extreme weather conditions, has a long lifespan and can be monitored from a distance. Ultra-low power consumption (less than 25W) enables the units to operate in remote locations that have minimal or no electricity, by incorporating a single-panel solar system or power generators.