Gilat Satellite Networks Announces Exchange Offer

Israel-based Gilat Satellite Networks Ltd. [Nasdaq: GILTF] has commenced an offer to exchange its outstanding 4 percent convertible subordinated notes due 2012 for its ordinary shares, with a par value of 20 cents per share. Gilat is offering 125 of its ordinary shares for each $1,000 principal amount of the notes and accrued interest. The exchange does not require a minimum or maximum amount of the notes to be offered. The expiration date for the exchange offer is midnight, Eastern Standard Time, on Nov. 10, 2003, unless extended. The exchange offer should result in a significant improvement in Gilat’s balance sheet, increased shareholders’ equity, reduced debt and improved financial ratios, company officials said.