Gilat Announces Results for the Third Quarter, 2008

Revenues for the third quarter of 2008 were $65.3 million, compared to $71.5 million for the same period in 2007. Net loss for the third quarter of 2008 was $0.5 million or $0.01 per diluted share, compared to a net income of $5.9 million or $0.14 per diluted share in the third quarter of 2007. Non-GAAP net income for the third quarter of 2008 was $0.6 million, or $0.01 per diluted share, compared to net income of $6.1 million, or $0.15 per diluted share in the third quarter of 2007.

Revenues for the nine month period ended September 30, 2008 were $201.4 million, compared to $209.9 million in the comparable period of 2007. Net income for the nine month period ended September 30, 2008 was $5.3 million or $0.13 per diluted share, compared to net income of $16.3 million or $0.39 per diluted share in the same period of 2007. Non-GAAP net income for the nine month period ended September 30, 2008 was $7.8 million, or $0.19 per diluted share, versus a net income of $17.4 million, or $0.42 per diluted share, in the comparable period of 2007.

Gilat's Chief Executive Officer and Chairman of the Board Amiram Levinberg said, "Our financial results in the third quarter reflect a decline in GNS's business, primarily attributable to lengthened sales cycles, partially offset by strong activity in the U.S. with the receipt of several major orders for gaming and other applications. Our business remains steady and the Company is in a strong financial position. We have a strong balance sheet carrying a sizeable amount of cash with relatively little debt that can support us even if business slows down due to economic hardships and may open for us interesting acquisition opportunities going forward."

During the quarter, Gilat filed a lawsuit against each of the parties that had guaranteed the payment of a termination fee under the Merger Agreement. This follows the termination of the Agreement and Plan of Merger entered into on March 31, 2008.

The Company also announced that it has not yet been able to reach resolution with the government of Colombia relating to the Compartel projects that were under renegotiation and were to have been signed in September 2008. More details will be provided in the Company's quarterly investor call.

Recent Announcements

-- Mongolia's Incomnet expanded its SkyEdge network to include a Gilat cellular backhaul solution to serve Mongolia's mobile operators. Gilat's SkyAbis cellular backhaul solution, based on the SkyEdge multi-service platform enables operators to deploy hybrid networks that extend the reach of their terrestrial and cellular infrastructure to remote communities.

-- A major international cellular operator in Bolivia is deploying a Gilat SkyEdge II network to provide cellular backhaul services throughout the country. Following the successful deployment of the initial phase of the new network which provides cellular backhaul services to 50 base station sites in the country, the operator is currently expanding the network to cover an additional 50 sites. The network will bring voice and data services to the country's remote regions.

-- Costa Rica's national telecommunications operator, ICE, selected Gilat's SkyEdge broadband satellite network to serve end users throughout Costa Rica with telephony and wireless Internet access services.

-- Gilat deployed a SkyEdge broadband satellite network in Honduras for Administradora de Redes (Aduanett), a private company owned by Honduras' leading customs brokers. The network provides high-speed Internet and data connectivity to customs offices and other businesses.

Conference Call & Webcast

Gilat will host a conference call today at 9:30 AM Eastern Time. In order to ensure audio access, participants from the U.S. should dial in at (888) 281-1167 and international participants should dial in at (972) 3-918-0692. The live presentation may also be accessed via Webcast through the Company's website at www.gilat.com prior to the call. A replay of the call will be available beginning at approximately 12:00 PM Eastern Time, November 24, 2008 until November 26, 2008 at 12:00 PM.

To listen to the replay, U.S. participants should call (888) 326-9310 and international participants should call (972) 3-925-5947. The call will also be available for replay as a Webcast on the Company's website at www.gilat.com and will be archived for 30 days.

About Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd. (Nasdaq and TASE: GILT | Quote | Chart | News | PowerRating) is a leading provider of products and services for satellite-based communications networks. The Company operates three business units: (i) Gilat Network Systems ("GNS"), which is a provider of network systems and associated professional services to service providers and operators worldwide; (ii) Spacenet Inc., which provides managed services in North America for businesses and governments through its Connexstar service brand and for consumers through its StarBand service brand; (iii) Spacenet Rural Communications, which offers rural telephony and internet access solutions to remote areas, primarily in Latin America.

Gilat was founded in 1987 and has shipped over 750,000 Very Small Aperture Terminals (VSATs) to more than 85 countries across six continents. Gilat's headquarters is located in Petah Tikva, Israel. The Company has 16 sales and service offices worldwide. Gilat markets the SkyEdge(TM) and SkyEdge II Product Family, which includes the SkyEdge Pro, SkyEdge IP, SkyEdge Call, SkyEdge DVB-RCS and SkyEdge Gateway.

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 Gilat 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 Gilat's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat'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 Gilat's international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with Gilat's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission.

Notes:

(1) The attached summary financial statements were prepared in accordance with U.S. GAAP. The attached summary financial statements for Q3 2008 are unaudited. To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents Gilat's net income, EBITDA and earnings per diluted share, before the expenses related to the merger transaction and the share-based payment charge, which is the non-cash stock option expense as per SFAS 123 (R). This non-GAAP presentation of net income, EBITDA and earnings per share is provided to enhance the understanding of the Company's historical financial performance and comparability between periods.

(2) Operating income (loss) before depreciation, amortization, non cash stock option expenses as per SFAS 123(R) and exceptional items, ('EBITDA') is presented because it is a measure commonly used and is presented solely in order to improve the understanding of the Company's operating results and to provide further perspective on these results. EBITDA, however, should not be considered as an alternative to operating income (loss) or net income (loss) for the period as an indicator of the operating performance of the Company.

Similarly, EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity. EBITDA is not a measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Reconciliation between the Company's Operating income (loss) and EBIDTA is presented in the attached summary financial statements.

GILAT SATELLITE NETWORKS LTD. CONDENSED CONSOLIDATED BALANCE SHEET US dollars in thousands September 30, December 31, 2008 2007 Unaudited ASSETS CURRENT ASSETS: Cash and cash equivalents 112,298 122,807 Short- term bank deposits and Held to maturity marketable securities 29,603 45,578 Short-term restricted cash 8,554 7,091 Restricted cash held by trustees 7,498 7,450 Trade receivables, net of allowance for doubtful accounts 55,188 43,746 Inventories 23,998 24,794 Other current assets 21,311 24,748 Total current assets 258,450 276,214 LONG-TERM INVESTMENTS AND RECEIVABLES: Long-term restricted cash 5,289 6,321 Long-term restricted cash held by trustees 16,701 16,544 Severance pay fund 13,354 11,835 Long-term trade receivables, receivables in respect of capital leases and other receivables 9,927 9,170 Total long-term investments and receivables 45,271 43,870 PROPERTY AND EQUIPMENT, NET 107,777 105,247 INTANGIBLE ASSETS AND DEFERRED CHARGES, NET 3,912 4,771 TOTAL ASSETS 415,410 430,102 GILAT SATELLITE NETWORKS LTD. CONDENSED CONSOLIDATED BALANCE SHEET US dollars in thousands September 30, December 31, 2008 2007 Unaudited LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank credit 5,500 5,823 Current maturities of long-term loans 5,357 5,354 Trade payables 18,591 25,954 Accrued expenses 24,311 20,275 Short-term advances from customer held by trustees 15,209 15,005 Other current liabilities 43,617 58,686 Total current liabilities 112,585 131,097 LONG-TERM LIABILITIES: Accrued severance pay 13,631 11,723 Long-term advances from customer held by trustees 8,989 8,989 Long-term loans, net 14,389 18,704 Accrued interest related to restructured debt 2,165 2,493 Convertible subordinated notes 16,315 16,315 Other long-term liabilities 11,000 12,971 Total long-term liabilities 66,489 71,195 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Share capital - Ordinary shares of NIS 0.2 par value 1,821 1,796 Additional paid in capital 862,216 859,207 Accumulated other comprehensive income 1,934 1,776 Accumulated deficit (629,635 ) (634,969 ) Total shareholders' equity (deficiency) 236,336 227,810 TOTAL LIABILITIES AND 415,410 430,102 SHAREHOLDERS' EQUITY

GILAT SATELLITE NETWORKS LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands (except per share data) Nine months ended Three months ended September 30, September 30, 2008 2007 2008 2007 Unaudited Unaudited Unaudited Unaudited Revenues 201,425 209,915 65,295 71,548 Cost of Revenues 135,757 134,279 45,917 45,750 Gross profit 65,668 75,636 19,378 25,798 Research and development expenses: Expenses incurred 13,293 12,846 4,359 4,109 Less - grants 1,380 1,756 604 481 11,913 11,090 3,755 3,628 SMG&A 48,570 51,554 15,133 17,372 Operating income 5,185 12,992 490 4,798 Financial income,net and other 2,261 3,858 577 1,136 Expenses related to merger transaction (1,972 ) - (1,039 ) - Other income 1,182 - - - Income before taxes on income 6,656 16,850 28 5,934 Taxes on income 1,322 545 574 81 Net income (loss) 5,334 16,305 (546 ) 5,853 Basic net earnings (loss) per share 0.13 0.42 (0.01 ) 0.15 Diluted net earnings (loss) per share 0.13 0.39 (0.01 ) 0.14 Weighted average number of shares used in computing net earnings (loss) per share Basic 39,852 39,026 39,989 39,228 Diluted 42,229 41,398 39,989 41,672

GILAT SATELLITE NETWORKS LTD. RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS FOR COMPARATIVE PURPOSES U.S. dollars in thousands (except per share data) Nine months ended Three months ended September 30, September 30, 2008 2007 2008 2007 Unaudited Unaudited Unaudited Unaudited GAAP operating income 5,185 12,992 490 4,798 Non-cash stock options expenses (1) 518 1,064 138 288 Non-GAAP operating income 5,703 14,056 628 5,086 GAAP net income (loss) 5,334 16,305 (546 ) 5,853 Non-cash stock options expenses (1) 518 1,064 138 288 Expenses related to merger transaction 1,972 - 1,039 Non-GAAP net income (loss) 7,824 17,369 631 6,141 GAAP Earnings (loss) per share (diluted) 0.13 0.39 (0.01 ) 0.14 Non-cash stock options expenses (1) 0.01 0.03 0.00 0.01 Expenses related to merger transaction 0.05 0.02 Non-GAAP Earnings (loss) per share (diluted) 0.19 0.42 0.01 0.15 (1 ) Non-cash stock options expenses: Cost of Revenues 21 8 7 4 Research and development 1 6 - 1 Selling, general, marketing and administrative 496 1,050 131 283 518 1,064 138 288

GILAT SATELLITE NETWORKS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS US dollars in thousands Nine months ended Three months ended September 30, September 30, 2008 2007 2008 2007 Unaudited Unaudited Unaudited Unaudited Cash flows from operating activities: Net income (loss) 5,334 16,305 (546 ) 5,853 Adjustments required to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 9,625 14,963 3,333 4,786 Impairment of Long lived and other assets 418 - 418 - Stock compensation related to employees stock options 518 1,064 138 288 Accrued severance pay, net 388 (20 ) 172 (161 ) Interest accrued on short and long-term restricted cash (204 ) (1,099 ) 292 (363 ) Interest on held to maturity marketable securities (1,777 ) (1,608 ) (142 ) (671 ) Exchange rate differences on long-term loans (34 ) 503 (538 ) 363 Exchange rate differences on loans to employees 21 (128 ) 1 (169 ) Capital loss from disposal of property and equipment 51 153 - 78 Deferred income taxes (220 ) (595 ) 6 (247 ) Decrease (increase) in trade receivables, net (11,628 ) (13,795 ) 2,407 (6,531 ) Decrease (increase) in other assets (including short-term, long-term and deferred charges) (2,558 ) 15,151 1,660 10,783 Decrease (increase) in inventories (2,274 ) 4,503 163 454 Decrease in trade payables (7,663 ) (2,640 ) (8,847 ) (2,765 ) Increase (decrease) in accrued expenses 4,004 (2,088 ) 4,600 (138 ) Increase (decrease) in advances from customer, held by trustees, net 204 (8,141 ) (292 ) (619 ) Decrease in other accounts payable and other long term liabilities, mainly deferred revenues (14,995 ) (12,502 ) (1,453 ) (11,019 ) Net cash provided by (used in) operating activities (20,790 ) 10,026 1,372 (78 ) GILAT SATELLITE NETWORKS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS US dollars in thousands Nine months ended Three months ended September 30, September 30, 2008 2007 2008 2007 Unaudited Unaudited Unaudited Unaudited Cash flows from investing activities: Purchase of property and equipment (8,728 ) (5,714 ) (4,403 ) (2,760 ) Return on investment 1,182 - - - Other investments (195 ) - - - Purchase of held to maturity marketable securities (100,375 ) (67,645 ) (19,816 ) (4,285 ) Proceeds from held to maturity marketable securities 118,128 19,934 87,056 14,459 Proceeds from sale of property and equipment 426 - - - Loans to employees, net 2,792 845 14 398 Proceeds from restricted cash held by trustees - 92 - - Investment in restricted cash (including long-term) (602 ) (5,952 ) (5 ) (1,483 ) Proceeds from restricted cash (including long-term) 171 3,824 - 3 Net cash provided by (used in) investing activities 12,799 (54,616 ) 62,846 6,332 Cash flows from financing activities: Exercise of options, net 2,516 3,092 651 1,467 Issuance of shares, net of issuance expenses - (262 ) - (3 ) Short-term bank credit, net (322 ) 4,623 - (5 ) Proceeds from long-term loans - 1,000 - 1,000 Repayments of long-term loans (4,278 ) (5,949 ) (4,086 ) (4,556 ) Net cash provided by (used in) financing activities (2,084 ) 2,504 (3,435 ) (2,097 ) Effect of exchange rate changes on cash and cash equivalents (434 ) 798 (1,177 ) 259 Increase (decrease) in cash and cash equivalents (10,509 ) (41,288 ) 59,606 4,416 Cash and cash equivalents at the beginning of the period 122,807 149,545 52,692 103,841 Cash and cash equivalents at the end of the period 112,298 108,257 112,298 108,257

GILAT SATELLITE NETWORKS LTD. CONDENSED EBITDA US dollars in thousands Nine months ended Three months ended September 30, September 30, 2008 2007 2008 2007 Unaudited Unaudited Unaudited Unaudited Operating income 5,185 12,992 490 4,798 Add: Non-cash stock option expenses 518 1,064 138 288 Deprecation and amortization and impairment of tangible assets 9,625 14,963 3,333 4,786 EBITDA 15,328 29,019 3,961 9,872

SOURCE: Gilat Satellite Networks Ltd.

Grayling Global Investor Relations Contact: Andrea Costa, 1 (646) 284-9400 acosta@hfgcg.com or Gilat Satellite Networks Ltd. Media Relations Contact: Kim Kelly, + (972) 3 925-2406 kimk@gilat.com