GILAT BUYS OUT IP PLANET

Mergers, Acquisitions and Financial Results

Israeli Gilat Satcom Ltd , a wholly owned subsidiary of Satcom Systems Ltd., has announced the acquisition of another Israeli company IP Planet Network Ltd. Both are major satellite bandwidth resellers in Africa.

Gilat, a leading provider of 13 years of satellite based communication services and IP Planet, a leading provider of comprehensive IP backbone connectivity solutions as a "group" will form one of the largest Internet and telecom services International companies, operating in more than 30 countries in Africa, Asia and Latin America, providing a complete set of services to all segments of the market: Satellite and Fiber connectivity, Mobile Satellite Services (on Iridium and Thuraya), VSAT and Voice services, Internet connectivity and Data Storage solutions.

The Group's portfolio of services targets large telecom operators and ISP's as well as Cyber Café's, multinationals and domestic corporate customers. With numerous customers and thousands of sites worldwide, using the vast technical experience and knowledge of both companies, the Group will continue to provide comprehensive solutions, products and services to its customers.

"We believe that there is a great level of synergy between the two companies and merging one with the other will generate much more than the sum of its parts. We expect improvements in service levels to customers, a wider variety of product offerings, improved engineering and marketing capabilities and increased dominance in the satellite service provision industry, all to the benefit and satisfaction of our customers", said Naftaly Barak, Gilat's Managing Director.

"IP Planet is very proud to join the Gilat Satcom Group and together become a much stronger service provider for the benefit of its customers in Africa and Latin America. I am confident that the IP Planet team will continue to deliver the service that our customers are familiar with during the last six years of our existence, while expanding our portfolio of services to target all telecom needs in our markets" said Erez Gissin, IP Planet's CEO.