Gilat Communications

(Nasdaq:GICOF) today announced an agreement with Interlect Japan, an educational application service provider. Gilat Communications will be providing products and services to the Japanese e-Learning market.

The two companies will be co-developing a localized e-Learning and virtual classroom solution for Japan.

Asia Pacific is a major marketing target of Gilat. This agreement is crucial to the company, it says, because it introduces Gilat to Japan.

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Just two weeks ago the company signed agreements with Campus Online, which operates in Hong Kong and China. He said that Gilat will shortly be revealing another major agreement, with a company in South America.

U.S. Bancorp Piper Jaffray estimates that the global corporate learning market is enormous. Having exceeded $11 billion in 1999, this market is expected to grow to over $46 billion by 2005.

Japan's e-Learning market is expanding rapidly, with the e-Learning course content market more than doubling from $26 million in 1999, to $60 million in 2000. By 2010, the total market for e-Learning content and systems is expected to reach US $10 billion, according to Nikkei System Provider magazine. The largest segment is expected to be the corporate market, comprising about 40% of the total e-Learning market.

Interlect's distance-learning solution will be based on LearnLinc, an Internet-based program developed by Gilat and Mentergy. LearnLinc enables students and the remote instructor to interact, and provides features allowing control over the transmitted content.