Gilat Communications Partners with Campus Online to Deliver Real Time Interactive Distance Learning Solution in Greater China

PETACH-TIKVA, Israel — Gilat Communications, Ltd. (NASDAQ:GICOF), today announced that it reached an agreement with Campus Online Limited, a leading educational application service provider in Asia Pacific to offer the Campus Online Distance Learning Solution in Greater China.

The new solution offers a number of award-winning features that ensure instructor control of many content choices, real-time interaction with students, and an all-in-one testing and assessment environment. It powers a web-based virtual classroom where students can receive live e-Learning anytime and anywhere.

Under the terms of the agreement, Gilat Communications will contribute its strong expertise in the e-Learning and virtual classroom arena, and Campus Online will leverage its strong e-Learning technology and network in localizing and marketing to the Campus Online Distance Learning Solution in Greater China. It is expected that the terms of agreement will allow the partnership to tap into the rapidly growing corporate learning market in the region. According to U.S. Bancorp Piper Jaffray, the global corporate learning market is enormous. Having exceeded U.S. $11 billion in 1999, this market is expected to grow to over U.S. $46 billion by 2005.

The new Campus Online Distance Learning Solution offers an ideal interactive e-Learning platform that enables organizations to reach more students with the best instructors, offer consistent training to a wide geographic audience whilereducing training budgets by eliminating travel time and the need for retraining. Its rich, interactive and virtual features not only allow real time interaction between students and instructors, but also provide an all-in-one and simple-to-use environment for e-Learning testing and assessment.

Powered by virtual classroom software from Mentergy Inc., an e-Learning company under Gilat Communications Ltd., Campus Online Distance Learning Solution is divided into two streams: TrainNet(TM) for broadband delivery and LearnLinc(R) for narrowband delivery.

Featured highlights of the Campus Online Distance Learning Solution include:

• Hand Raising/Floor Control (Live Classroom Control) – a student raises an electronic hand and the instructor passes control of the content so the student may make a comment or ask a question;

• Screen Monitoring – allows the instructor to capture individual student screens to correct a problem or view an assignment to monitor students’ performance;

• Assistant Instructor – while the instructor is running the virtual class, one or more assistant instructors will interact with students individually and monitor student text chat, hand raising and feedback to facilitate learning;

• Breakout Groups – instructors can set up breakout groups with selected students or an automatic configuration to facilitate team discussions, role-playing, and brainstorming. Breakout groups can be set up “on-the-fly” to last for a specified time before the students are automatically returned to the instructor-led class;

• Record & Playback – Campus Online Distance Learning Solution classes can be recorded and stored for later playback, creating instant self-paced content for student review or for instructor training. All instructor/student audio and screen interactions are recorded, such as hand raises, feedback, text chat and synchronized courseware;

• Q&A – allows instructors or students to write questions in multiple choice or true/false format ahead of time, or compose them spontaneously during a class. The results will be displayed in percentages, which can be shared with other classmates or reviewed individually;

• TestLinc™ – allows comprehensive tests to be created, delivered, graded and reported using a standard web browser;

• Application Sharing – specially tailored for software skills training allows instructors or students to launch multiple software applications and share mouse and keyboard controls for those applications, or the entire desktop: and,

• Streaming Video – that enables instructors to deliver live or pre-recorded presentations by content experts or play video clips over the Internet/Intranet.

Sandra Lam, Executive Vice President of Campus Online Limited remarked, “We are extremely delighted to be able to partner with such a reputable international leader as Gilat Communications. By combining our e-Learning technology and strong presence in Asia Pacific with Gilat Communications’ proven expertise and track record in interactive distance learning, we are fully geared-up to deliver the most innovative e-Learning solution to multi-national companies, as well as government and educational institutions in Greater China.”

Boaz Sacks, Director of Sales at Gilat Communications Ltd. in Asia, commented: “We see excellent synergies between Campus Online and Gilat Communications in offering e-Learning solutions in Greater China. Relatively speaking, e-Learning in Greater China is still in its infancy, and we are confident that our terms of agreement with Campus Online will introduce a new standard, and help accelerate the development of e-Learning in that region.”

About Campus Online

Campus Online Limited, a subsidiary of Codebank Limited, is a leading educational Application Service Provider in Asia Pacific. With a clear vision for developing IT in education, Campus Online Limited has introduced the most innovative Internet technology for educational institutions and communities in Hong Kong. Since the establishment of eCampus in 1997, Campus Online Limited has been serving over 1,200 schools in Hong Kong and providing turnkey solutions for their IT development. Though headquartered in Hong Kong, Campus Online Limited is dedicated to driving IT in education to the global marketplace. Leveraging their experience and resources in the home market with their far-reaching business vision enables Campus Online to enjoy the first mover benefits in many Asia Pacific countries. Campus Online is actively participating in the development of China and the establishment of Internet technology for schools in many major cities. Apart from assisting with the rapid development of information technology in China, Campus Online has been a gateway to the synergy of global educational resources. www.CampusOnline.org

About Codebank Limited

Codebank Limited is the leading Internet Platform Provider (IPP) in Asia Pacific. With deep and broad management expertise, aggressive investment in information technology, and a clear vision, Codebank is positioned to be the pioneer and expert in creating and managing the most diverse Internet platforms network of Internet companies: CBIT Corp – Internet Technology Provider, Campus Online – Education Application Service Provider, and MAP – Multiple Application Platform Provider. With corporate headquarters in Hong Kong and strategic investment across Greater China, Asia and worldwide, Codebank offers winning solutions to empower dot-coms, corporations and the government sectors in a wide spectrum of industries–business, education, family, and community. www.code-bank.com

About Gilat Communications

Gilat Communications, Ltd. (NASDAQ:GICOF), is a global leader in using advanced, blended e-Learning techniques and technologies. Gilat Communications formed Mentergy, its e-Learning operation, by merging Allen Communication with LearnLinc Corporation. Allen Communication has provided advanced courseware development services and technology-based authoring and design tools for almost 20 years to more than 60% of the Fortune 500. LearnLinc Corporation features live, collaborative Web-based training via the LearnLinc(R) virtual classroom, which is used by hundreds of organizations around the world and interactive distance learning (IDL) solutions worldwide. TrainNet(TM), Gilat Communications’ comprehensive broadband IDL solution allows organizations to conduct instructor-led or self-paced sessions utilizing computers, telephone, Internet connections and broadband communications. John Bryce Training is Gilat Communications’ European IT training and content company, and is one of the leading providers of IT training services in Europe and the Middle East. www.gilat.net

About Mentergy

Mentergy, Inc. is a Gilat Communications, Ltd. (NASDAQ:GICOF) e-Learning company that provides a comprehensive set of e-Learning products, consulting and courseware development services for large enterprises through its LearnLinc and Allen Communication properties. With over 21 years of expertise in the learning industry, Mentergy assists businesses worldwide in making a cost-effective shift from traditional learning, with its inherent expense and loss of productivity, to a blended approach, which includes technology-based training solutions or “e-Learning.” Mentergy’s customers range from mid-size companies to Global 2000, including Aetna US Healthcare, WorldCom, Made2Manage, Citibank, Countrywide, Rockwell-Collins, Federal Reserve Bank of Philadelphia, Intel and other industry leaders. For more information, visit http://www.mentergy.com.

About John Bryce Training

John Bryce Training is a leading IT training company in Israel and Europe and a fast-growing enterprise in this field since 1994. The company offers over 200 different programs and courses, each tailor-made to suit its clients’ rapidly changing needs. John Bryce trains IT professionals, managers, developers and infrastructure personnel in a wide range of subjects, and is an authorized training solution provider for companies such as Microsoft, Oracle, Sun Microsystems, Cisco, Novell, and others.

Mentergy(TM) is a trademark and LearnLinc(R) is a registered trademark of Gilat Communications. All other brand names, product names, or trademarks belong to their respective holders.

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate” “project” “intend” “expect” “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to the Company’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for the Company’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with the Company’s international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with the Company’s business, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission.

CONTACT: Mentergy, Inc., Atlanta

Ziv Mandl, 770/612-9129

ziv.mandl@mentergy.com

or

Gilat Communications Ltd., Tel-Aviv, Israel

Eytan Mucznik, 972/3-925-5094

meytan@gilat.net

or

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