Costa Rica’s national telco selects Gilat’s SkyEdge broadband satellite network

– VSAT platform will bring reliable telephony and wireless Internet access to rural citizens –

Petah Tikva, Israel, September 17, 2008 – Gilat Satellite Networks Ltd. (Nasdaq: GILT) today announced that it has been selected by Costa Rica’s national telecommunications operator Instituto Costarricense de Electricidad (ICE), to provide a Gilat SkyEdge broadband satellite communications network that will serve end users throughout Costa Rica.

ICE will use the new VSAT network to expand its programs to provide toll-quality telephony to rural citizens, meeting its Universal Service Obligations. The network will also provide satellite backhaul for wireless Internet access to those citizens. Using this mix enables the service provider to benefit from the advantages of each technology – satellite’s nationwide reach and wireless’ cost-effective, “last mile” access.

ICE is a long-standing Gilat customer, having deployed Gilat VSAT networks nationwide since 2005.

“After evaluating competing VSAT offerings, we determined that Gilat’s SkyEdge has the high performance and compelling economics that make it ideally suited to expand telephony and Internet access to all our rural communities,” said ICE Ing. Edgar Hernandez. “In the past, Gilat has demonstrated a very high level of commitment to customer support and a solid track record for providing superior telecommunications services. These attributes will help us serve the needs of our citizens in an efficient manner.”

Russell Ribeiro, Gilat Network Systems’ Regional Vice President, Latin America, said, “Continuing our relationship with ICE helps us bring the most efficient, dependable communications systems to the citizens of Costa Rica. We are proud to once again demonstrate our ability to meet the critical voice and data connectivity requirements of the world’s rural communities.”

Gilat’s SkyEdge is a satellite communications system that delivers high-quality voice, broadband data and video services over a powerful unified system. SkyEdge represents Gilat’s extensive knowledge base and field-proven product offering, acquired through two decades of experience. SkyEdge’s flexible architecture and efficient space segment utilization make it an ideal platform for operators and service providers.

About Instituto Costarricense de Electricidad (ICE):
Costa Rica’s national telecommunications operator, Instituto Costarricense de Electricidad, (ICE), offers fixed and mobile telephony as well as data/Internet communications. ICE is a government entity that has distinguished itself in Central America as a leader in the development and implementation of new technologies. It offers a wide variety of services in Costa Rica and has several technological platforms that allow it to diversify the service options for its customers, both residential and corporate. For more information visit www.grupoice.com.

About Gilat Satellite Networks Ltd.
Gilat Satellite Networks Ltd. (Nasdaq: GILT) is a leading provider of products and services for satellite-based communications networks. The Company operates under three business units: (i) Gilat Network Systems (“GNS”), which is a provider of network systems and associated professional services to service providers and operators worldwide; (ii) Spacenet Inc., which provides managed services in North America for businesses and governments through its Connexstar service brand and for consumers through its StarBand service brand; (iii) Spacenet Rural Communications, which offers rural telephony and Internet access solutions to remote areas primarily in Latin America.