The revolutionary, unified platform supports a variety of applications and topologies including mesh, star and multi-star, and represents a major step forward in VSAT technology. It incorporates Gilat's broad knowledge base and field-proven product offering acquired through nearly two decades of experience with data, telephony and broadband IP applications as a technology vendor and service provider.

Gilat's existing customers will benefit from a migration path to the new product family. The first SkyEdge customers plan to have networks installed in May 2004.

Able to support an endless array of applications in data, telephony and broadband IP, all using the same hub, the SkyEdge product family represents a breakthrough in the industry -- it is the first truly comprehensive satellite communications platform to deliver superior data, voice and video services over a single, powerful system.

Until now, each specific VSAT network required its own corresponding hub. This required an investment in separate, additional hubs to support a variety of applications. The SkyEdge family is a result of a two-year research and development effort that gives new meaning to the concept of a scalable, flexible and modular network, allowing customers to invest in a single system infrastructure and to add additional VSAT platforms as needed to accommodate new and different application requirements.

Years of Gilat's technical and operational experience, with market leading products such as the Skystar 360E and the DialAw@y IP, have been rolled into the SkyEdge product family.

The family consists of the SkyEdge System (the hub), and five VSAT products including:

SkyEdge Pro -- Multi-service VSAT, supporting interactive data, mesh telephony, broadband IP and video, with plug-in card architecture, expanding the VSAT capabilities. SkyEdge IP -- IP Router VSAT, supporting interactive, broadband IP, VoIP and multicasting applications. SkyEdge Call -- Telephony VSAT, supporting thin-route telephony applications. SkyEdge Gateway -- Trunking Solutions VSAT, providing mesh trunking solutions supporting digital telephony and IP data on demand trunking applications.

SkyEdge DVB-RCS -- Enhanced Standard VSAT, fully supporting the DVB-RCS standard. Being much more than only a return link standard, this dual mode VSAT provides a unique real end-to-end standard solution for a satellite network operator with an arsenal of additional access schemes, embedded software and enhanced IP acceleration features for full flexibility and support in a complex IP environment. Benefits for Gilat Customers (Network Operators)

The SkyEdge product family opens new markets and business opportunities for satellite network operators. These include:

Lower entry cost for satellite networking business and operation due to: Lowest possible space segment cost with which to start the network's operation. Single hub for multiple market needs. Lower recurring space segment and operation costs due to enhanced system performance: Improved space segment utilization, using 8PSK outbound with Turbo Coding. Better throughput and higher bit rates, up to 2Mbps.

All embedded VSAT platform. Tailored VSATs for different markets. Better end user experience: Embedded TCP and HTTP acceleration. Embedded accelerated VPN. Multiple services over the same VSAT, single box solution. Total separation between different user groups, operational over the same hub. Reduced business and road map risk for the operator: Gilat's enhanced DVB-RCS VSATs and multi-service VSATs are operational in the same network.

"We are very excited about this new product line which once again demonstrates the Company's technological leadership in the industry," said Oren Most, Gilat's President and CEO.

"Following extensive and thorough research of satellite communications customers in the various regions and market segments, Gilat defined the roadmap for its next generation of products to best tailor solutions to the customers' needs. SkyEdge strengthens Gilat's advantages over its competitors and enhances its positioning as a leader in the satellite data and telephony communications markets."

While the SkyEdge product family marks the future road map of Gilat's product family, the Company will continue to sell, develop and support its existing successful products such as the Skystar Advantage, DialAw@y IP, Skystar 360E, SkyBlaster 360 and Faraway VSATs.

More than 45 existing Skystar 360E networks worldwide with more than 40,000 VSATs installed, as well as new customers, have a seamless migration path to the new product family, which will enable existing Skystar 360E and SkyEdge product family VSATs to be operated and managed in the same network.

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