Telesat testing high-speed Internet service with rural Property and Casualty Broker and CSIO Portal

Sept. 10, 2002 — Since Telesat launched its new two-way satellite High Speed Internet (HSi) service earlier this year, the company has been in discussions with the Insurance Brokers of Canada and various provincial insurance brokers’ associations, to increase their awareness of Telesat’s solution to the challenge of high speed Internet access in rural areas. Telesat has been working with the CSIO on the new insurance portal that will be operational soon. Recently, Telesat provided their HSi service to an insurance broker whose business is located in rural Ontario and does not have access to high speed Internet. The broker is using the HSi service for testing the CSIO portal and other web-based business applications in an insurance broker environment.

Telesat unveils first high-speed Internet service to reach all of US & Canada

Satellite operator targets businesses that need ADSL performance at underserved locations.

Ottawa, ON, April 15, 2002 – Telesat today launched the first high-speed business Internet service that�s available everywhere in the United States and Canada. The new Telesat High Speed Internet service, offered in partnership with Spacenet Inc., a subsidiary of Gilat Satellite Networks Ltd., enables two-way high-speed Internet access for users across all 50 U.S. states and all 13 Canadian provinces and territories.

�There are other high-speed Internet services, but only Telesat offers the extended Canadian coverage that many business users need to complete their North American networks,� said Dennis Billard, Telesat�s vice-president of business development. �Telesat High Speed Internet has been designed with business users in mind – and it�s the only one built on Canadian facilities. This is the service users have been waiting for and we�re seeing a large pent-up demand in this area.�

The typical customer for the new service is a business that requires Internet access at ADSL-type speeds at locations that are outside served areas. This market could include large enterprises, the resource sector, franchise businesses and government institutions. Unlike other two-way satellite Internet offerings, which have been adapted from consumer services, Telesat High Speed Internet is based on Gilat�s 360E VSAT platform, designed expressly for commercial applications. Its benefits include highly optimized Internet application support, direct Ethernet connectivity, robust system reliability and advanced quality-of-service features.

Telesat�s service offering provides comprehensive coverage of both Canada and the United States and incorporates operations, maintenance and service support. An added benefit of this service is the migration to Telesat�s future Ka-band platform – a system that�s ideal for delivery of high-bandwidth applications.

The system will operate from Telesat’s Toronto Teleport on the company�s Anik E2 satellite, which provides ubiquitous coverage at antenna sizes starting at .75 meters. Telesat�s distribution strategy includes both direct sales to large corporate or institutional users and a reseller model for small- and medium-sized businesses. Telesat�s resellers include Infosat Communications of Burnaby, BC, and RamTelecom of Ottawa.

�As a long-time provider of satellite communications services for business, Telesat understands the importance of performance, reliability and manageability of the technology in meeting the needs of business customers,� said David Shiff, Spacenet�s vice president of sales and marketing. �In light of Telesat�s expertise, it is an honour to have been selected as the infrastructure provider for this new service offering – and to help bring broadband Internet connectivity to the Canadian market.�

Telesat has been providing satellite solutions to Fortune 500 businesses for 30 years. The company and its partners now provide VSAT business services to more than 20,000 locations all over North America. Current users include clients from the automotive, retail, petroleum, and hospitality sectors.

About Spacenet

With headquarters in McLean, Virginia, Spacenet Inc. is a wholly owned subsidiary of Gilat Satellite Networks Ltd. (Nasdaq: GILTF) of Petah Tikva, Israel. Spacenet and Gilat are leading providers of satellite-based, broadband Internet communications technology. Spacenet provides two-way, satellite-based, broadband networking solutions for a wide range of organizations throughout North America. These solutions include provision of all equipment, bandwidth, implementation and ongoing network and field support on a full turnkey, outsource basis. Visit Spacenet at www.spacenet.com.

About Telesat

Telesat is the world�s most experienced commercial satellite operator. The company made history in 1972 with the launch of the first domestic commercial communications satellite in geostationary orbit. Today, Telesat competes with the world�s leading satellite fleets in providing telecommunications and broadcast distribution services throughout the Americas. Telesat is a wholly owned subsidiary of BCE Inc., one of the world’s premier communications companies.