23-Feb-00

EchoStar, Gilat Satellite Networks First To Offer Two-Way Satellite Internet Access And DISH Networkô Satellite Television On Single Dish

Echostar To Provide Sales Distribution, Installation For PC Internet Access, Satellite TV Programming

EchoStar Communications Corp. (NASDAQ: DISH, DISHP) and Gilat Satellite Networks Ltd. (Gilat) (NASDAQ: GILTF) today announced an agreement to jointly offer consumers two-way, high-speed satellite Internet access along with hundreds of channels of EchoStar's DISH Networkô satellite television channels via a single small consumer dish. Under the agreement, EchoStar will distribute the Gilat-To-Home Inc. satellite Internet service powered by MSN along with DISH Network satellite TV service through its more than 20,000 retailers nationwide. This agreement follows last week's joint announcement of Microsoft and Gilat's establishment of Gilat-To-Home Inc., and their joint plan to provide the first consumer two-way satellite broadband offering. EchoStar's DISH Network customers will benefit by having ""always on"" access to the Internet via MSN Internet Access and an MSN-Gilat-To-Home co-branded portal. EchoStar and Gilat made the announcement at Team Summit, DISH Network's annual conference held in Denver, Colorado for more than 1,500 retailers from across the country. EchoStar and Gilat-To-Home will be the first to offer consumers a complete hardware and services solution for broadband Internet access combined with satellite TV programming. EchoStar will streamline the consumer experience by providing complete installation of the satellite television receiver, a two-way Internet terminal and a single dish antenna at the consumer's home. Limited availability of this new service is expected by the end of 2000. Gilat-To-Home two-way satellite service users can expect Internet access speeds up to 10 times faster than normal modem speeds, with burst rates considerably higher. Two-way satellite service offers significant benefits for consumers, including a persistent or ""always on"" connection that saves time over dial-up methods and eliminates the need for a second telephone line. Gilat-To-Home will offer high-speed Internet connections to the consumer's PC via a single small dish. The same dish is capable of receiving up to 500 channels of DISH Network satellite TV programming for the consumer's television, delivering a bundled service opportunity not previously available in the consumer market. Under the agreement, EchoStar will provide installation for consumers through its nationwide DISH Network Service Corporation, which will install a unique, single dish that can simultaneously ""see"" satellite signals from three different orbital locations. The oblong dish, approximately 24 inches by 36 inches, will be capable of receiving and sending Internet data while at the same time receiving DISH Network satellite television channels, including the same services customers enjoy today from DISH Network's DISH 500 system, which include local channels, interactive channels and hundreds of programming offerings. ""EchoStar's agreement with Gilat-To-Home is a win-win for consumers,"" said Charlie Ergen, Chairman and CEO of EchoStar. ""Gilat-To-Home addresses the need for a highly demanded, value-added service for DISH Network customers by combining high-speed Internet access along with the low prices and multiple entertainment television offerings from DISH Network, all onto a single, convenient dish. It will have the same reliability and technological advancements, as well as the affordability, that our DISH Network customers have grown accustomed to."" ""We believe one of the most important aspects for the success of Gilat-To-Home is working with a DBS partner with strong brand image and well-established distribution channels,"" said Yoel Gat, Chairman and CEO of Gilat Satellite Networks. ""Echostar's DISH Network holds the enviable position of being recognized for the highest level of customer satisfaction. Their reputation and market savvy will accelerate our efforts to build market share with a bundled broadband and entertainment service."" The Gilat-To-Home services will be available in a variety of monthly packages. MSN and Gilat will continue to add value with future offerings, including multicast services that will deliver live video and audio events in a higher-quality format, all of which will be available to DISH Network customers. EchoStar Communications Corp., includes three interrelated business units: - DISH Network is EchoStar's state-of-the-art direct broadcast satellite system that is capable of offering over 500 channels of digital video and CD-quality audio programming, including DolbyÆ Digital surround sound, high-speed interactive television and data services, all on a single dish, as well as offering fully MPEG-2/DVB compliant hardware and installation. DISH Network was ranked number one in customer satisfaction among satellite/cable TV subscribers by the J.D. Power and Associates 1999 Cable/Satellite TV Customer Satisfaction Study. - EchoStar Technologies Corporation designs, manufactures and distributes DBS set-top boxes, antennas and other digital equipment for the DISH Network and various international customers that include ExpressVu Canada and the Via Digital system in Spain. ETC provides construction, oversight and project integration services for customers internationally. ETC also oversees EchoStar Data Networks Corporation in Atlanta, Georgia, a leading supplier of MediaStreamô technology for distributing Internet content over satellite networks. - Satellite Services provides the delivery of video, audio and data services to business television customers and other satellite users. These services include satellite uplink, satellite transponder space usage and other services. Satellite Services also administers SKY VISTA, a direct broadcast satellite service offering popular digital satellite television programming to viewers in Alaska, Hawaii, Puerto Rico and the U.S. territories in the Caribbean. DISH Network, which currently serves over 3.4 million customers, is a trademark of EchoStar Communications Corporation. DISH Network is located on the Internet at www.dishnetwork.com. About Gilat Satellite Networks Ltd. Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc., Spacenet Services Europe GmbH and Gilat Florida Inc., is a leader in very small aperture terminal (VSAT) technology, manufacturing and service. The company, based in Petah Tikva, Israel, provides satellite-based, end-to-end enterprise networking and rural telephony solutions to customers across six continents, and currently markets nationwide interactive broadband data services for U.S.-based corporations and service providers. Skystar AdvantageÆ, ClearlinkÆ, ISATÆ, OneWayô, TwoWayô-Ready Receiver, SkyWayô, DialAwayÆ, FaraWayô, SkySurferÆ and SkyBlasterô are trademarks or registered trademarks of Gilat Satellite Networks Ltd. or its subsidiaries. For more information, visit Gilatís Web site at www.gilat.com.