In related agreements, Alcatel, under contract to SES, will expand and provide SATLYNX's product line to include a DVB-RCS platform (Digital video broadcasting - Return channel by satellite), enabling highly efficient two-way broadband Internet access via satellite.

Alcatel technological expertise in DVB-RCS open standard solutions will reinforce the SATLYNX offering in all market segments and allow the deployment on a large scale of cost effective standard solutions to support the SATLYNX services.

SES and Gilat have also executed an agreement to fund the development of a low cost, Ka-band version of Gilat's popular Skystar 360E family product line.

Joshua Levinberg, SATLYNX's Chairman of the Board and Senior Vice President Business Development at Gilat Satellite Networks, said,"We are very pleased to welcome Alcatel into the SATLYNX partnership. SATLYNX is already uniquely positioned to supply a wide spectrum of satellite-based two-way, broadband services, as well as data networks, to corporations and small businesses throughout Europe.

Alcatel's joining the Company will further enhance SATLYNX's position as a leader in its markets and should give a boost to our efforts in promoting the BroadBand-over-Satellite concept."

Robert Bednarek, Executive Vice President Corporate Development at SES GLOBAL and Vice-Chairman of SATLYNX, commented:"We sincerely welcome Alcatel's strong endorsement of our European two-way satellite broadband initiative and we look forward to working closely with Alcatel and Gilat in the further evolution of satellite-based 2-way services.

The European market shows signs of significant demand over the coming years for satellite-based broadband and the strong partners in SATLYNX enables the company to aggressively and confidently pursue these opportunities."

G�rard Dosogne, Vice President Business Development at Alcatel Space and President and CEO of SkyBridge LP said:" We are pleased to join SATLYNX which brings the opportunity to promote on a large scale basis the DVB-RCS standard and Alcatel's"DSL in the sky" concept.

We are convinced that SATLYNX will greatly benefit from Alcatel's expertise in both satellite and ADSL in order to offer competitive two way broadband services meeting the high level of requirements of the Telco's and ISP's, including customer management, cost-effective solutions and reliability".

Satlynx was established in May 2002 by SES and Gilat and offers two way satellite broadband access services to Telecommunication operators and ISP's on a wholesale basis as well as corporate VSAT services to enterprises.

Satlynx satellite broadband services enable Telcos and ISP's to complement their ADSL network and to offer broadband services to residential consumers, SoHo, SME's, schools, municipalities and other public entities, all over Europe, including areas not reached by terrestrial broadband networks.

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