The remote sites are being deployed throughout O Boticario stores, including various locations in airports, supermarkets and shopping centers throughout Brazil. One thousand sites have already been implemented, with the remaining to be installed in the first half of 2006.

As part of a consortium with Embratel, StarOne is responsible for the implementation of a Multi-Service Communication System that will handle the communication needs of retail stores throughout the country.

In order to meet this demand, Gilat has been chosen to provide a variety of applications supported by VSATs, including credit card authorization, Internet access, voice over IP, video, audio and IP multicast used for distance learning, music clips distribution, management presentations to employees or product launch initiatives and advertisements.

Specifically, O Boticario will utilize the multicasting capability to ensure that the same source of information and the same exact message is delivered to store employees.

StarOne's Broadband Director, Ricardo Cruz, said, "We are pleased to continue in our long lasting relationship with Gilat and work together with the Company towards another satellite network based project. We have chosen Gilat due to our previous experience with its leading technology, its ability to offer our customers an efficient use of space segment and the advantage of providing a speedy implementation schedule."

Russell Ribeiro, General Manager of Gilat do Brazil, said, "This agreement is further proof of our ongoing commitment to helping Embratel and StarOne offer the most advanced VSAT technology and applications to their customers. After working with Embratel to deploy thousands of VSATs throughout Brazil, this contract demonstrates our ability to fulfill the diverse networking requirements of their most demanding enterprise customers."

Ribeiro added, "It is gratifying to see our concept of VSAT networking put into practice -- where one platform is used to accommodate a wide range of services with low cost of ownership. We are dedicated to using our significant local-office resources to ensure that this project meets O Boticario's high expectations in attending to all its stores throughout the country, serving thousands of people daily."

The Company also announced the approval of all resolutions brought before the shareholders at its Special General Meeting held on December 27, 2005. In addition, the Company's Chairman of the Board and Chief Executive Officer, Amiram Levinberg, will be presenting at the Needham Growth Conference in New York on Thursday, January 12, 2006. A copy of this presentation will also be available under the Investor section of the Company's website from January 12, 2006.

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