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Israel Aerospace Industries Ltd.

Israel Aerospace Industries announces delivery of the 1st Heron UAV to Canada

Oct 15, 2008

Israel Aerospace Industries (IAI) delivered today the first Heron UAV system to the Canadian Air Force.

IAI and MacDonald Dettwiler and Associates Ltd. (MDA) as prime contractor, were recently awarded (August 2008) a contract to deliver IAI’s Heron UAV through MDA to Canadian forces deployed in Afghanistan (NOCTUA project).

The contract is valued at 95 million Canadians Dollars (81 million USD).

The UAV lease for Canada will be completed by the end of 2010, with an option to extend for an additional year.

The platform and equipment are built completely at IAI's facilities in Israel, while management, training, and in-theatre maintenance for the Canadian operators is the responsibility of the Canadian prime contractor MDA.

The Canadian Air Force and Army have been exposed to IAI's abilities in UAV's for some time. Several demonstrations have been made, illustrating the various solutions available to meet Canadian operational demands.

Shortly before the delivery, IAI’s Malat Division hosted the Canadian Defense Attache' in Israel, Col Geordie Elms for a tour of the facilities. During his visit at Malat, Col Elms was shown the most updated line of products Malat Division has to offer, including the Heron UAV.

This is not the first time MDA and IAI have cooperated on a UAV project. Under the "Ardea" project, the Heron was tested for use in civilian missions, and was successfully demonstrated in Alberta, Canada.

The successful cooperation with MDA on the “Ardea” project led to the joint price proposal to the Canadian Air Force for the NOCTUA project.

MDA provides advanced information solutions that are essential for decision making.

MDA is focused on information solutions for market sectors which offer strong repeat business potential, the Financial Services sector and the Surveillance and Intelligence sector. In addition, the Company conducts a broad range of customer funded Advanced Technology development aimed at further extending human capability.

IAI's MALAT Division spearheads the design and manufacture of Unmanned Aircraft Vehicles (UAV's) systems. MALAT offers a family of systems that vary in size, endurance, mission profile and on-board sensors, covering the full spectrum of operational requirements by providing micro and mini systems as well as tactical close and short range, and Medium Altitude Long Endurance (MALE) systems.

MALAT systems are in operational service with 39 customers that are deployed on four continents and have accumulated over 450,000 flight hours.

IAI’s vast operational expertise is incorporated in the continuously modified, upgraded and enhanced systems offered to its customers worldwide.

For further information, please contact:

Doron Suslik
Deputy Corporate Vice President for Communications
Tel: 972 (3) 935-8509
Fax: 972 (3) 935-8512
Email: hpaz@iai.co.il

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