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Spacenet Awarded $7.5 Million To Provide Broadband Service In Alaska, Hawaii By Rural Utility Service

Spacenet Plans To Use Federal Grants To Improve Broadband Internet Access To Rural Unserved Areas Of Both States Through Its StarBand Satellite Services--

MCLEAN, Va.--(BUSINESS WIRE)--Spacenet Inc., a wholly owned subsidiary of Gilat Satellite Networks Ltd. (Nasdaq: GILT) and a leading provider of broadband network solutions, announced that it has been awarded federal grant funding from the Rural Utility Service (RUS) under the American Recovery and Reinvestment Act. The grant will allow it to provide broadband service to rural unserved markets in Alaska and Hawaii through its "StarBand Open Skies" initiative. Spacenet will offer its StarBand broadband-over-satellite service to these regions for $0 down, including equipment and standard installation, and an entry-level monthly service fee of $50.

"This grant award is great news for customers in Alaska and Hawaii that need access to affordable broadband Internet services"

"This grant award is great news for customers in Alaska and Hawaii that need access to affordable broadband Internet services," said Spacenet CEO Andreas Georghiou. "We're pleased to be able to help provide access through this special grant funding with our StarBand satellite Internet options. Since its inception in 2000, the StarBand product line has focused on providing high-speed Internet service to the most rural areas without access to alternative options. The RUS recognized the difficulty and unique challenges in deploying service in these regions and took appropriate measures to address them. First they increased the subsidy, and second they selected the StarBand team to implement it. I can speak for the entire organization when I say we are immensely proud to be part of this endeavor."

StarBand is basing its StarBand Open Skies service offerings for Alaska and Hawaii on custom versions of its Nova 1000 and 1500 products. Both packages exceed the performance requirements set forth by the RUS for this program. The Nova 1000 service provides download speeds of up to 1 Mbps and upload speeds of 200 Kbps, and the Nova 1500 service provides download speeds of up to 1.5 Mbps and upload speeds of 256 Kbps. Both services also offer value added features including: 10 free hours of dial access per month for backup or traveling; virus protection; spam filtering; access to the StarBand Member Portal powered by Google; 24X7 online support; and up to 15 email accounts.

For more information visit www.starband.com/alaska, www.starband.com/hawaii or call 800-296-5818.

About Spacenet®

Founded in 1981, Spacenet Inc designs, develops, and manages wireline and wireless broadband network solutions for US based business, industrial and government customers, as well as residential users through its StarBand product line. Spacenet has a longstanding tradition of industry leadership and innovation, and today has more than 100,000 operational network endpoints for customers including many Fortune 500 companies and major government agencies. Spacenet offers a complete product and services portfolio for applications ranging from primary communications for corporate applications and secure data transfer, to hot stand-by solutions for continuity of operations and network backup, or field deployable solutions for disaster recovery and emergency management. Spacenet Integrated Government Solutions, a division of Spacenet Inc., develops networks and communications solutions for agencies such as the Department of Defense, Homeland Security, the Intelligence community and other government agencies requiring highly secure, flexible solutions. Spacenet is based in McLean, Virginia, and operates its own end-to-end services infrastructure including network management, field services and teleport facilities in McLean, VA; Atlanta, Georgia; and Chicago, Illinois. Spacenet is a wholly owned subsidiary of Gilat Satellite Networks Ltd. (Nasdaq: GILT). Visit Spacenet at http://www.spacenet.com/

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