Gilat signs MOU with Kazakstan for satellite telephony
Business Wire - July 17, 1998 08:15
PETAH TIKVA, Israel--(BUSINESS WIRE)--July 17, 1998--Gilat Satellite Networks Ltd. (NASDAQ: GILTF), announced today that it has been chosen by JSC KazakTelecom (KazakTelecom) to supply satellite telephony equipment for Kazakstan's Nationwide Satellite Network Project. Under the Memorandum of Understanding (MOU) signed today, Gilat will deliver several hundred FaraWay(TM) VSATs to serve as the foundation for Kazakstan's satellite telephony infrastructure. The deal is worth an estimated US$6.2 million to Gilat, with most of the delivery expected within a year.
"This is another significant telephony deal for Gilat, and our first penetration into the Commonwealth of Independent States," remarked Gilat Vice President of Sales and Marketing Ehud Orgil. "We look forward to KazakTelecom becoming an important strategic partner in the region, and foresee working together to help expand Kazakstan's telephone network in the future."
Serik Burkitbaev, President of KazakTelecom, stated, "We chose Gilat from among a considerable number of potential vendors because of the product's impressive feature set, the Company's reputation for quality and their willingness to work together with us to match Gilat solutions to KazakTelecom needs. We hope to further strengthen our ties through the establishment of a local Gilat office and joint cooperation efforts."
JSC KazakTelecom is a leading provider of public telephony services in Kazakstan and coordinator of the Nationwide Satellite Network Project, which will interconnect more than 250 cities and villages throughout that country with telephone, fax and data services.
The MOU is subject to the terms of a formal agreement to be negotiated. There can be no assurance that such an agreement will be reached.
Gilat Satellite Networks Ltd. designs, develops, manufactures, markets and supports Very Small Aperture Terminal (VSAT) satellite earth stations and related hub equipment and software. Gilat's satellite telephony products include FaraWay(TM) VSAT, which offers multi-channel, toll-quality telephone, fax and data services, and DialAway(TM) VSAT, which offers 1 to 3 channels, telephone and fax service to rural communities. The Company also has a range of products for satellite-based data communications and Internet-access.
FaraWay(TM) and DialAway(TM) VSAT are trademarks of Gilat Satellite Networks Ltd.
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: Robert Ferris/Steven Curtis
Ruder-Finn, Inc., 212-715-1573
or
Yoav Leibovitch, CFO
Gilat Satellite Networks Ltd.
+972-3-925-2007
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