Customers

Name and title of the presenter, Date

1
 Some of Our Enterprise Customers

Gaming Banks/Financial Retail & Point of Sale Oil & Gas

Freight & Shipping

Automotive Supermarket Hospitality

2
 Enterprise Case Studies

US Postal Service USA Boticario Brazil

Post Offices
Retail Cosmetics Chain
+ 12,000 branches
2,135 sites
Turnkey Project, Custom Network
Applications: VoIP, Data networking, video
Applications: Business Continuity, Primary advertising
networking solution, Frame relay backup
Products: Skystar Advantage Products: Skystar Advantage,
Advantage Skystar 360E

GIS Germany Dollar General USA

Banking Retail Chain

1,800 cooperative banks 7,397 Stores
Turnkey project, full service Applications: Polling Xcellent, Check authorization,
prepaid phone cards, Debt/EBT, inventory
Applications: Multicast, Intranet, Business TV management
Products: Skystar Advantage Products: Skystar Advantage

3
 Enterprise Shared Hubs
Case Studies

HCL Comnet India Spacenet USA

Shared hub for Enterprises Connexstar Service

+ 12,000 sites 4,000 sites
Applications: Banking, ATM, Internet access, Applications: Debit & credit card Authorization, Polling
interactive data applications, national stock exchange Services, inventory management, network back-up,
business training,

Products: Skystar Advantage Products: Skystar Advantage, Skystar 360E

Comsat MAX India Mexico

Shared-hub Services for the Enterprise Shared-hub Services for the Enterprise
~ 5,000 sites 2,055 sites
Applications: Banking, Corporate telephony, Applications: Wire transfer, inventory, point of
ERP (SAP) implementation, FTP, Mail/Internet sale, credit card authorization services, internal
corporate data transfer applications

Products: Skystar Advantage, Skystar 360E, FaraWay Products: Skystar 360E

4
 National Carrier Solutions

Extended reach
With existing public telephony & internet networks

Seamless connectivity
With existing public telephony & internet networks

Cost effective solution

Minimal capital investment
Immediate revenue generating services (prepaid)
Low power consumption
Rural telephony & IP Low maintenance & operating costs
Corporate telephony
Quick to deploy & easy to manage
Universal Service Obligations
Rapid installation & relocation
Stand alone payphones
Centralized/remote control & management
Public call offices
Traffic monitoring and analysis tools
Prepaid services
Telecenters / Post offices Vast experience with large scale projects
Ideal solution for USO projects
Turnkey
5
 National Carrier Case Studies

Telkom SA S.Africa Kazakh Telecom Kazakhstan

Public Telephony & Broadband Internet Telephony & Corporate Communications

6,400 sites Backbone Interconnection
Turnkey Project, solar powered 882 sites
Applications: Internet / Shared Hub Services, Public Applications: National Telephony, Disaster recovery,
Telephony, Public Call Offices, Payphone support Corporate networking (Oil & Gas Industry)

Products: Skystar Advantage, Skystar 360E, DialAw@y IP Products: FaraWay

Telmex Mexico China Telecom China

Rural Communication for Tibet and

Rural Communication Xingiang Province
+3,000 sites (18,000 lines) 5,000 sites
Turnkey Project Solar powered
Applications Heavy telephony traffic, public call offices Applications: Rural Telephony, public call offices

Products: FaraWay Products: DialAw@y IP

6
 Internet Service Provider Solutions

More business opportunities

One platform supports all applications
Improve business offering with service diversity

Advanced shared-hub capabilities

Private & secure dedicated resources (hardware & space segment)
Remote & Private NMS monitoring

Network management /analysis tools

High Speed Internet Access For network optimization: Fairshare QoS, traffic analyzer, bandwidth bank
Private data networks Saves resources, space segment optimization
Virtual Private Networks (VPN)
IP applications
Economics
Low maintenance, operation & support costs
Rural/Corporate telephony
Low entry fee reduces risk
Banking
Content delivery Quick to deploy & easy to manage
Multicast Simple-to-operate NMS. Ideal for operation of many small networks
ERP (SAP) implementation
7
 Internet Service Provider
Case Studies

Star One Brazil Bharti India

Service Provider for SME, SoHo & Consumers Enterprise Service Provider
15,000 sites +3,000 sites
Applications: Applications: Internet Access, E-mail, FTP,
Broadband Internet Access, content delivery Banking, Linking, Tele-education, Content delivery,
Multicast

Products: Skystar Advantage, Skystar 360E, 360 Products: Skystar 360E

Alldean Kenya ISNET Turkey

VSAT Network Operator Broadband Internet Access Service Provider

1,642 sites 1,500 sites
Applications: High Speed Internet Access, Private Applications: Internet access, data networks, voice
data networks, Virtual Private Networks (VPN), IP Embedded VPN & video applications
applications, Rural telephony
Products: Skystar Advantage, Skystar 360E, FaraWay Products: SkyEdge

8
 Government Solutions

Secure networks
End-to-end encryption, Private Networks

Extend local services & administration

Increase local governing and influence in remote areas
Education, health services, military & police

Ensure social benefits

Communication for every citizen – from basic telephony to high
speed internet

Air Traffic Control Encourage economic development

Military Communications Information access and communication between communities
Mobile/Transportable VSAT Develop a more competitive environment
Disaster recovery
E-government Vast experience in governmental projects
Education Telephony, post offices, disaster recovery, education…
Tele-medicine
Cost-effective networking
SCADA
Low maintenance, operation & support costs

9
 Government Case Studies

Venezuela TEFER Turkey

Venezuelan Electoral Board Turkey Government Agencies

Electronic Voting (designed & integrated in 1 month) SCADA - Weather & Water Monitoring
2,900 sites at polling stations 356 sites

Applications: Electronic voting,, identification system, Applications: Meteorological monitoring systems,

data transfer Automated Weather Observation, hydrological stations

Products: Skystar 360E Products: Skystar Advantage

Compartel Columbia Civil Aviation Authority Mongolia

Rural Community Centers Air Traffic Control (Telephony & Data)

10,000 Sites 22 airports across Mongolia
Full turnkey project Applications: VHF interconnections, Voice relay, PTT
circuits, Data circuits, Remote monitoring and control of
Applications: Internet Access & Telephony VHF stations, navigational aids etc.
Products: Skystar Advantage, Skystar 360E Products: FaraWay

10
 Some of Our Customers
National Carriers, Service Providers &
Governments
Telcos ISPs Governments Private Operators

11
Case Studies

12
US Postal Service
Large Enterprise-Networking Customer

Requirement from MCI Worldcom:

Centrally-managed system for Postal
service’s 11,000 branches (potential
of 33,000)
Quick network roll-out
Solution: Skystar Advantage
Network will be three times the size of
any existing VSAT network
Primary networking solution for 26,000
Small Area Offices
Frame relay backup solution for 7,000
Large Area Offices

13
Comsat MAX - India
Shared-hub Service for the Enterprise

Requirement from Comsat MAX:

Reliable, easy-to-manage system for operation
of many small enterprise networks
Solution:
- Skystar Advantage – 2,200 sites and growing
- FaraWay - 500 sites and growing
- Skystar360E – 1,500 sites
Shared hub for corporate networks
City Bank
Honda (automotive industry)
Whirlpool (Mfg. & Distribution)
Corporate telephony and Intranet services
Typical site includes:
2 voice channels, 32-64 kbps data
Typical Applications
Banking, Corporate telephony, ERP (SAP)
implementation, FTP, Mail/Internet

14
GIS Germany
Enterprise Networking

First Requirements from GIS:

Connect 1800 cooperative banks to
world stock exchanges and financial
services organizations
Solution: Skystar Advantage
Turnkey Project, Full service
Applications:
Multicast
Intranet
Business TV
Possible Future Applications:
Additional TCP/IP applications,
Kiosk terminals,
Points of Sale and Information

15
Six Continents
USA Enterprise Networking

Requirements from Bass:

IP based central reservations
system in 2100 Holiday Inn hotels.
Turnkey Project
Solution: Skystar Advantage
Applications:
Guest Reservations
Credit Card Authorization
Polling Services
Possible Future Applications:
Distributing Internet and Video to
remote sites and Kiosks
Store and Forward Applications

16
Bharti Broadband Networks
India Shared Hub Services

Requirements from Bharti:

DVB based satellite Internet service
To establish one of the largest shared hub
systems in Indian history serving Sahara India
~1,500 sites to serve the Sahara India
Pariwar group of companies
More than 3,000 sites providing always-on
Internet access to corporate and small
office/home office (SOHO) in India
Solution: Skystar 360E
Applications:
Internet Access
E-mail, FTP
Banking
Linking
Tele-education
Content delivery
Multicast

17
SCADA
Global Case Studies

Logica – Gas Pipeline , UK

470 site complete end-to-end SCADA
network for a national Gas Pipeline
supporting communication between data
centers and remote terminal units.
The Chinese Ministry of Water Resources
400-site VSAT network sending
hydrological and flood control reports
from field offices in 10 provinces to the
Ministry’s Beijing headquarters.
Chinese Bureau of Seismology
150-site VSAT network for earthquake
monitoring, file transfer, Intranet
information exchange, and voice
applications.
Stratos/Nova Net – USA
Integrated ruggedized VSAT terminals into
electric utilities control and monitoring
systems maximizing the power line
capacity and increasing revenues

18
Telkom SA
Public Telephony & Broadband Internet Services

Requirement from Telkom South Africa:

6,400 lines in remote northern region
Integration with PSTN
Turnkey project, quick network
roll-out
Solution: DialAw@y IP
Uniform installation solution
Sub-meter Ku-band antenna
Pole mount; All outdoor; All solar
PSTN integration at 5 terrestrial
gateways
PSTN-compatible for rural subscribers
Payphone support
1,700 sites - Internet / Shared Hub Services
Solutions: Skystar Advantage,
Skystar 360E

19
Telmex
Mexico Rural Telephony

Requirements from Telmex:

Rural Telephony Network for 1900
communities across Mexico
Solution: FaraWay
Largest FaraWay network, and one of
the 2 largest VSAT telephony
networks worldwide (number of lines)
6 lines per site - total of more than
11,400 lines in the network
Turn key project
Applications: Public Call Offices
Network requested and designed to
support potential growth of up to 5000
sites
Heavy telephony traffic

20
Kazakh Telecom
Kazakhstan National Telephony &
Corporate Communications
Requirements from Kazakh
Telecom:
Providing over 150 rural remote
sites with telephony, fax and data
infrastructure
20 regional stations - switching
centers
250 remote sites
500 remote terminals
Solution: FaraWay
Applications:
National Telephony,
Disaster recovery
Corporate networking (mainly for
the Oil & Gas Industry)

21
VSAT Data Networks Operator
Kenya Gilat Alldean

Requirements from Gilat Alldean:

IP enabled networks
Gateways with digital, rather than
analog interfaces
Multiple E1 interfaces at network
switches
Solution: Skystar 360E, DialAw@y IP
and FaraWay platforms
Applications:
High Speed Internet Access for
corporations, SME’s and
government agencies
Private data networks
Virtual Private Networks (VPN)
IP applications
Rural telephony

22
Civil Aviation Authority
Mongolia Telephony and Data

Requirement from CAAM:

Telecommunication infrastructure for
air traffic control at 22 airports across
Mongolia
Solution: FaraWay technology
Applications:
VHF interconnections
Voice relay
PTT circuits
Data circuits (ticketing,
meteorological, etc.)
Remote monitoring and control of
VHF stations, navigational aids etc.

23
Rural Community Centers
Compartel-2, Columbia

Government Requirements
Provide adequate tools for educating people
Expand telecom infrastructure reach
Target population: small towns & communities with
over 3,500 population without Telephony/
Internet services
Total of 500 sites
Full turnkey project
Including Installation, service,
operation and maintenance
Solution:DialAway IP & Skystar 360E platforms
Applications
Internet Access & Telephony
Up to 8 PCs per site supporting
up to 20 students. Support accessories
- TV, printers, faxes scanners etc.
Some sites powered by solar panels

24
SCADA- Weather & Water Monitoring
Turkey Government Agencies

Requirements from Turkey Emergency Flood

and Earthquake Recovery Project (TEFER):
Technology to power vital information systems
to help the Turkish authorities prepare for
natural disasters
Satellite communication network
for use by TEFER
Two hub systems and 356 VSAT
sites for two government authorities
Solution: Skystar Advantage technology
Applications:
SCADA – Enable monitoring of
meteorological radar systems,
Automated Weather Observation
Systems (AWOS), hydrological stations
and airport meteorological stations.

25
E-Government, Distance Learning
GESAC- Brazilian Government Program

Requirements: Provision of Internet

access to millions of Brazilian citizens
3,200 sites nationwide
3,098 Schools
48 Kiosks
57 Nuclear sites
Solution: Gilat’s Skystar 360E VSAT
Applications:
Internet Access - two-way satellite
Internet service
E-Government - Citizens can send
in government forms via the
Internet, among other services
Distance learning, Internet access
for schools

Installations in 1 month 800

26
Satellites in Education
Technology that Reaches Everyone

Coverage for every school within the satellite footprint

Immediate deployment everywhere
Indifferent to geographic limitations
Equal access opportunity for all
Equal grade of service - fairness
Equal cost of deployment
Always-on two-way connectivity
Remote training via PC for corporations

27
Satellites in Education
Distance Learning Global Examples

Japanese Ministry of Post and

Telecommunications
Internet to schools
Korea Telecom International
Distance learning in schools
Africa- World Bank project
Internet to schools in Uganda,
Tanzania, Senegal, Ghana
Colombia
Government program IDL to
elementary schools
Australia
New South Wales and Northern
Territories, broadband Internet
services for distance education in
rural communities

28
Broadband Internet Access
Consumer & Small Business

Starband
First nationwide high-speed
Internet provider
Always-on, two-way service
Network-wide broadcasting &
multicasting capabilities
Installed in more than 40,000
locations
Largest network of its kind
Other recent Broadband deals:
Connexstar - USA
Star One – Brazil
Bharti, HCL, Comsat Max - India
Telkom South Africa
GESAC, Brazil
Optus – Australia “It’s more than Broadband…It’s
Dream - Philippines
Starband!”
Tiscali, BTopenworld - Satlynx

29
Rural Communications

Special needs and characteristics of rural

areas:
Lack of reliable power supply
Difficulty in providing normal wire line
services
Huge distances between communities
Applications that change people’s lives
Internet
Interactive distance learning
E-Medicine
E-Government
Rural telephony
Remote Monitoring
Broadcasting

VSAT technology provides an immediate interactive connection for rural

.communities around the globe and helps to bridge the digital divide

30
Gilat General

31
 Gilat Satellite Networks
Organization Chart

Gilat Satellite Networks

Finance Corporate BD

Spacenet Rural Spacenet Gilat Networks

Solutions

Enterprise & Network

Rural Networks Consumer America Sales Management Operation
Networks Solutions

Operation, BD, Business

Spacenet Africa Finance
Finance, etc. Development

Planning
South East Asia
Fitel StarBand Marketing Treasury &
& Pacific
Administration

North Asia & Customer

Compartel Satlynx MIS
Eastern Europe Services

Global Network Western Europe R&D Technology Legal

Human
DNI
Resources

32
The Power to Execute
Customer Services

Program Management
Overall Responsibility for Project
Implementation
Single Customer Point of Contact
System Engineering
Pre-Sale to Post-Sale Handoff
System Integrity & Quality Assurance
Application Engineering
Internet Applications over Satellite
Professional Networking Services
Technical Support
World Wide Local/Regional support centers
System Maintenance and Optimization
Customer Educational Services
Professional Documentation
Training: Hands-on practice; Demonstration
labs; CBTs; movies 33
 Global Presence
Gilat Offices and Service Facilities

Russia

Kazakhstan
Spacenet Americas
Starband Israel China

Thailand
Mexico
India

Colombia
Andina
Peru Indonesia
Gilat HQ
Brazil

Gilat Offices Australia

South Africa

Service Facilities

With extensive coverage Gilat is ready to service customers in any location 34

Financials

35
 P&L indicators by Quarters ($M/%)

$80 45%
Revenues
Operating Income (loss) 40%
$60 Gross Profit (%)
35%

$40 30%

25%
$20
20%

$0 15%

10%
($20)
5%

($40) 0%

36
 P&L indicators by Years ($M/%)
$300 Revenues
40%
Operating Income (loss)
Gross Profit (%)
$250 35%

$200
30%

$150
25%

$100
20%
$50

15%
$0

10%
($50)

($100) 5%

($150) 0%
2003 2004 Q1 - Q3/2005
37
 Cash Balances ($M)

$140
$123
$120
$105
$97
$100

$80 $71

$60

$40

$20

$0
31/12/2002 31/12/2003 31/12/2004 30/09/2005

*Includes cash and cash equivalents, short-term bank deposits, short- and long-term
restricted cash and restricted cash held by trustees less short-term bank credits

38
 Long Term Debt ($M)

$600
$512 Convertible notes
York Convertible Loan
$500
Other Debt

$400

$359
$300
$136
$133
$200
$125
$16 $16 $16
$100 $102
$71 $71 $70
$51 $49 $46 $39
$0
31/12/2002 31/12/2003 31/12/2004 30/09/2005
39
 Financial summary:
Gilat at an inflection point

Financial turnaround; 2003-2005:

31/12/2002 30/09/2005 2003 Q1-Q3/2005

Cash Balances $71 $105 Gross Profit (%) 17% 36%

Inventory $75 $19 Operating Loss* ($93) ($1)
Account Receivables $55 $31 EBIDTA* ($25) $14
Total Debt $512 $125 [*] In US$ Millions

Shareholders’ Equity ($173) $81

All in US$ Millions

New controlling party: York Capital - shows market confidence

2006 Management financial objectives
Double digit revenue growth
Net income profitability
40
Summary

Our market is growing

Growing Service market, Growing Equipment market,
Worldwide growth

We are positioned to grow

within the market
Corporate structure, Worldwide presence, Financial
position, New product-line, OEM potential

We are going up the value chain –

an orthogonal source for growth
and profitability
Turn-key projects, Tailored solutions, Value-Added applications,
Managed services

41
Special Notice

This document contains forward-looking

statements. Such forward-looking statements
involve risks and uncertainties. The actual results
may differ materially from such forward-looking
statements. Gilat Satellite Networks Ltd. does not
undertake to publicly or privately update or revise
its forward-looking statements even if experience
or future changes make it clear that any projected
results (expressed or implied) will not be realized

No sale or offer to securities

is made or solicited by this document

42
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