Gilat Signs Telmex Rural Telephony Contract

Friday, December 15, 2000

Israel-based satellite operator Gilat Satellite Networks (NASDAQ: GILTF) has signed a contract to provide a fixed rural satellite telephony network for Mexico's Telmex (NYSE: TMX), Gilat said in a statement.

Telmex will use the network to set up public call centers in almost 2,000 communities throughout Mexico's national territory. The contract represents the first award under Telmex's program to expand rural telephony coverage, and is expected to be one of the largest known deployments of fixed satellite telephony in the world.

Gilat will immediately begin deployment of the network, based on its "FaraWay" Very Small Aperture Terminal (VSAT) product, and expects to reach completion in mid-2001. FaraWay employs a full-mesh, DAMA network architecture that maximizes the use of available satellite and ground-based resources. Under terms of the agreement, Gilat will provide a comprehensive VSAT network solution, including the ongoing operation and remote maintenance of the network.

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