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Boeing and IAI Announce New Commercial and Military Work To Be Done In Israel

Oct 24, 1999

Israel Aircraft Industries, Ltd. (IAI) and The Boeing Company will meet this week for their second annual joint steering committee meeting. The meeting is designed to explore ways to increase the cooperation between the two companies and enlarge the scope of their mutual business activities.

Boeing announced today that IAI:

* Will be partner with Boeing to engineer and convert Boeing 757 passenger airplanes into special freighters (757 SF).

* Will manufacture spare rudders for the Boeing F-15 Fighter.

* Will convert Boeing MD-11 passenger airplanes to freighters.

Total potential contract value of the programs announced today is approximately US $120 million.

"Israel Aircraft Industries continues to demonstrate its superior capabilities in both commercial and military aircraft programs,"said Alan Mulally, President of Boeing Commercial Airplane Group. "This is another example of the Being Company's commitment to its long-standing relationship with Israel and IAI," he said.

"We are proud to be a partner with Boeing on these innovative programs," said Moshe Keret, President & CEO of IAI. "Building on these successes, we will continue to look for ways to expand our business relationship," he added.

Under a deal with DHL Worldwide Express, Boeing will convert 44 B-757 passenger airplanes into B-757SFs. IAI will perform engineering and conversion work on a portion of the aircraft and will be a preferred partner to Boeing for future F-757SF conversion work. The work will be done for Boeing Airplane Services, Boeing's new after-market service business.

IAI will also manufacture and deliver 228 spare rudders for the F-15. This contract follows previous contracts calling for Israel to produce 167 F-15 spare rudders. IAI is the largest F-15 airframe supplier, in addition to the spare rudders IAI is producing conformal fuel tanks, cockpit side panels, vertical stabilizers and aircraft doors for the F-15 fighter.

Additionally, IAI is converting MD-11 passenger airplanes to freighter configuration for Boeing Airplane Services. The first converted MD-11 freighter is scheduled to be delivered to the customer in December of this year.

IAI also manufactures and assembles landing gears for the Boeing 717, empennage leading edge and tip assemblies for the Boeing 777, landing gear actuators for in-production Boeing commercial airplane models, and IAI is also engaged in work supporting numerous Boeing military programs.

For more information, contact:
Doron Suslik
Deputy Corp VP for Communications
Tel: 972 (3) 93 5-8509
Fax: 972 (3) 935-8512
Email: hpaz@hdq.iai.co.il