"This is another significant telephony deal for Gilat, and our first penetration into the Commonwealth of Independent States," remarked Gilat Vice President of Sales and Marketing Ehud Orgil. "We look forward to KazakTelecom becoming an important strategic partner in the region, and foresee working together to help expand Kazakstan's telephone network in the future."

Serik Burkitbaev, President of KazakTelecom, stated, "We chose Gilat from among a considerable number of potential vendors because of the product's impressive feature set, the Company's reputation for quality and their willingness to work together with us to match Gilat solutions to KazakTelecom needs. We hope to further strengthen our ties through the establishment of a local Gilat office and joint cooperation efforts."

JSC KazakTelecom is a leading provider of public telephony services in Kazakstan and coordinator of the Nationwide Satellite Network Project, which will interconnect more than 250 cities and villages throughout that country with telephone, fax and data services.

The MOU is subject to the terms of a formal agreement to be negotiated. There can be no assurance that such an agreement will be reached.

About Gilat

Gilat Satellite Networks Ltd. designs, develops, manufactures, markets and supports Very Small Aperture Terminal (VSAT) satellite earth stations and related hub equipment and software. Gilat's satellite telephony products include FaraWay(TM) VSAT, which offers multi-channel, toll-quality telephone, fax and data services, and DialAway(TM) VSAT, which offers 1 to 3 channels, telephone and fax service to rural communities. The Company also has a range of products for satellite-based data communications and Internet-access.