Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission.

Interview with Mr. Sivakumar, CEO – Agri Businesses, ITC Limited, India

1.Could you please explain the business rationale of eChoupal project?
Rural India is a difficult environment for business. Infrastructure – roads, power, telecom – is weak. Market institutions – information, risk transfer, finance – are still evolving. Lack of access to modern resources has resulted in under-trained workforce, leading to subsistence incomes. These and many other constraints dissuade many companies from taking on the challenge of rural commerce. Yet, such an engagement can result in a “win-win” agenda.

ITC eChoupal deploys modern tools and business processes to tackle these inefficiencies and overcome the constraints, contributing to increases in rural incomes while creating new business opportunities for the company.

2.What are the benefits that farmers have reaped out of this network and what benefits have ITC gained from this network?
ITC’s eChoupals – Internet kiosks in the villages – represent an approach to seamlessly connect subsistence farmers with global markets. The network of these eChoupals – each operated by a local farmer from within the community – allow for a “virtual integration of the supply chain” eliminating the several inefficiencies of the traditional disconnected chain. The specially designed local language web portals provide access to real-time information on prices & weather and customized knowledge on farm practices.

The farmers benefit by improving their farm productivity and realizing better prices for their crops, and a sense of dignity & confidence in being connected with the rest of the world.

ITC benefits through lower transaction costs, and better traceability of the source of raw material for its food & agribusinesses.

3.What are the impediments you faced in starting up the complex network especially in villages with very poor infrastructure?
State-of-the-art technology requires localization to overcome the challenges of poor infrastructure and the digital divide that exists in rural India.