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Israel Aerospace Industries Ltd.

Northrop Grumman, Israel Aircraft Industries' Tamam Division Establish Teaming Agreement Involving Electro-Optical Systems

Jul 16, 2003

Northrop Grumman Corporation's (NYSE: NOC) Defensive Systems Division and Israel Aircraft Industries'IAI/Tamam's POPTAMAM Division (TAMAM) have signed a teaming agreement that will combine their expertise in the design and production of electro-optical (EO) payloads for intelligence, surveillance, targeting and reconnaissance for specified business opportunities.

"This agreement will build on the individual strengths of our two world-class organizations to expand business opportunities for certain classes of UAVs as well as other potential applications," said Mike Lennon, vice president of targeting and surveillance programs at Northrop Grumman's Defensive Systems Division.

The teaming agreement will combine Northrop Grumman's extensive experience in advanced EO and infrared (IR) sensors, targeting, surveillance and laser systems, with TAMAM's accomplishments in small and mid-sized surveillance payloads, including its plug-in optronic payload and multi-mission optronic stabilized payload to address customer requirements for such small and mid-sized payloads. New products developed by the team under this agreement will bear the name RAVEN EYE.

"The proven capability of TAMAM's payloads on Department of Defense unmanned air vehicle programs such as Hunter, Shadow, Pioneer and Fire Scout, coupled with Northrop Grumman's EO/IR sensor, targeting, surveillance and laser expertise, creates a natural team to fully address our customer's performance requirements for these payloads in a timely and cost effective manner," Lennon said.

IAI/Tamam's MOSP"This teaming arrangement will enhance our ability to compete for emerging Army programs such as future combat systems, the aerial common sensor, and other new UAV efforts such as Hunter upgrades and the Hunter Stand-Off Killer program."

"We are confident that this teaming agreement with Northrop Grumman's Defensive Systems Division will increase the potential business opportunities for TAMAM'S existing electro-optical payloads and allow the two companies to work together on future payloads in a very cost effective manner," said Zion Sarig, general manager of TAMAM.

Israel Aircraft Industries' TAMAM Division is a leading system house in the field of design, development and production of stabilized EO payloads for airborne (UAVs, fixed-wing aircraft and helicopters), maritime and land applications.

The Defense Systems Division is a component of Northrop Grumman's Baltimore-based Electronic Systems sector, a world leader in the design, development, and manufacture of defense and commercial electronic systems, including airborne radar systems, navigation systems, electronic warfare systems, precision weapons, airspace management systems, air defense systems, communications systems, space systems, marine systems, oceanic and naval systems, government systems, and logistics services.

For further information, please contact:

Doron Suslik
Deputy Corp. VP for Communications
Tel: 972-3-935-8509
Fax: 972-3-935-8512
Email: hpaz@iai.co.il

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