Schoengold & Sporn, P.C. Announces Securities Fraud Class Action Against Gilat Satellite Networks, LTD.

NEW YORK, NY, March 12, 2002 (INTERNET WIRE), - Schoengold & Sporn, P.C. ((866) 348-7700 or mailto:www.Schoengold@aol.com, Shareholderrelations@spornlaw.com), longtime specialists in securities class and shareholder derivative actions, has filed a securities fraud class action on behalf of all persons or institutions who acquired common shares of Gilat Satellite Networks, Ltd. (NASDAQ: GILTF - news; “Gilat” or the “Company”) between November 13, 2000 and October 2, 2001 (the “Class Period”) at artificially inflated prices due to the Defendants’ materially false and misleading statements concerning its net income and inventories.

The action alleges violations of the securities laws of the United States (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated there under) by Gilat, Yoel Gat, Chairman of Gilat’s Board of Directors and the Company’s Chief Executive Officer, and Yoav Leibovich, Gilat’s Chief Financial Officer). The lawsuit asserts claims against Gilat and its controlling officers and directors and seeks damages as well as an accounting.

Among other things, plaintiff claims that defendants knew or recklessly disregarded, yet covered up the fact, that the demand for and acceptance of Gilat's products and the products of its subsidiary, StarBand Communications, Inc., were greatly overstated, that Gilat was having difficulty manufacturing and selling its chief product, Very Small Aperture Terminal (VSAT) profitably, that Gilat's purported gross profit margins were false, that Gilat was materially understating its costs and expenses and that Gilat, accordingly, would have to take massive charge-offs, numbering in the hundreds of millions of dollars in the future. Plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements caused Gilat's stock price to become artificially inflated, inflicting enormous damages on investors.

If you purchased securities of Gilat during the Class Period, November 13, 2000 and October 2, 2001, you may be a member of the class and may move the Court to be named a lead plaintiff. If you wish to so serve as lead plaintiff, you must move the Court by May 10, 2002. The action is pending in the Eastern District of New York, Docket Number 02 CV1544.

Schoengold & Sporn, P.C. was established in 1962 and has specialized in securities fraud litigation for over 35 years, recovering multi-millions of dollars for defrauded investors. In the recently settled case of Del Global Technologies Securities Litigation, 00-Civ-8495 (CM) where the shareholders are anticipated to receive over 60% of their losses, Judge McMahon of the United States District Court for the Southern District of New York, White Plains, N.Y. courthouse, in approving the settlement on January 28, 2002, said of Schoengold & Sporn, the plaintiffs’ sole lead counsel: “In this case the lawyers have gone the extra mile.”

Any securities investor of Gilat during the Class Period is invited to call or otherwise contact:

CONTACT:
Jay P. Saltzman, Esq.
Ashley Kim, Esq.
Schoengold & Sporn, P.C.
19 Fulton Street, Suite 406
New York, New York 10038
Tel: (212) 964-0046
Fax: (212) 267-8137
Toll Free: (866) 348-7700
E-Mail: shareholderrelations@spornlaw.com
Website: www.spornlaw.com

SOURCE: Schoengold & Sporn, P.C.

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