Re Investment

RNS Number:3595X
Gilat Satcom Limited
29 May 2007




                              GILAT SATCOM LIMITED
                                     
          INVESTMENT IN EAST AFRICA UNDERSEA FIBRE OPTIC CABLE CAPACITY
                                        

Gilat Satcom Ltd. ("Gilat"), the international broadband services company quoted
on AIM (GLT), announced today that it has decided to invest and purchase
bandwidth capacity in the Eastern Africa Submarine Cable System project
("Eassy") through Gilat Satcom Nigeria Ltd. (its wholly owned subsidiary). The
purchase will be made through the Western Indian Ocean Cable Company Limited
("WIOCC") a company established by various parties and financed by global
Development Financial Institutions. As one of the investing parties in this
project, Gilat will purchase long-term bandwidth capacity enabling it to
increase its penetration of the East African market for broadband internet
services.

Eassy is a US$235 million project to build an undersea fibre optic telecoms
cable, which will have connectivity to the world-wide internet backbone and
which will service the east coast of Africa. The project's construction is being
funded by a consortium of East African national and international telecoms
service providers. Eassy is scheduled to be ready for commercial use at the
beginning of 2009.

WIOCC intends to purchase approximately forty percent of Eassy's capacity and
then resell the purchased capacity to national and international telecoms
service providers. Gilat intends to invest approximately US$2.3 million in the
project. Gilat's investment will entitle it to ownership of approximately three
and a half percent of WIOCC's share capital. In addition, Gilat's investment
will give it access to bandwidth capacity which may be used for broadband
internet connectivity or other communication applications for the lifetime of
the cable, (which is expected to be at least 15 years), together with
participation in the management of the project through a place on the WIOCC's
board of directors. An initial investment of US$1.3 million is due within the
coming year and the balance of US$ 1 million will be payable between 2009-2011.
Gilat's investment will be funded from it's existing resources.

Gilat's Chief Executive Officer, Amos Lasker, commented: "We see the Eassy
investment as a significant step towards fulfilling our strategic plan to become
a telecommunication service provider for the developing world utilizing a
variety of infrastructure technologies. The ability to secure capacity on the
first fibre optic telecoms cable system in East Africa will help Gilat expand
its operations throughout East Africa."


CONTACTS

Gilat Satcom Ltd.:                                  +972 3 925 5015
Liat Helman, CFO

Commitment-IR:                                      +972 3 61144 66
Yael Nevat or Zion Bahloul

Seymour Pierce:                                     +44 20 7107 8000
Stuart Lane or John Depasquale


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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