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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.

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.