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Israel Aerospace Industries Ltd.

Israel Aircraft Industries and Indian Ministry of Defense Sign $1.1 Billion Aircraft Industries and Indian Ministry of Defense Sign $1.1 Billion Contract For Three Airborne Early Warning Aircraft

Mar 5, 2004

Moshe Keret, IAI's President & CEO stated: "IAI has a proven experience in Airborne Early Warning systems. We are pleased that the Indian Air Force has chosen us as a partner for this program"

Ben-Gurion Int'l Airport, Israel, March 5, 2004 - Israel Aircraft Industries (IAI) and the Indian Ministry of Defense signed a $1.1 billion contract in New Delhi, India, on March 5th, 2004, for the sale of three Airborne Early Warning (AEW) aircraft to the Indian Air Force.

At the signing ceremony, IAI's President & CEO, Moshe Keret, said: "This contract was achieved after very positive efforts in the political, marketing and engineering areas. IAI and Elta have a proven experience in AEW systems. We are pleased that the Indian Air Force has chosen us as a partner for this program. This contract will strengthen the bond between IAI and the Indian Ministry of Defense and Indian industry."

The early warning electronic subsystems were designed and manufactured by IAI's Elta Systems Group and Subsidiary. They will be installed onboard three Russian IL-76 aircraft and will include radars, electronic intelligence systems and communications equipment. Aircraft mission will include tactical surveillance of airborne targets and gathering of Electronic Intelligence (ELINT) missions.

Elta has proven experience in the development of AEW systems, including the Chilean Air Force Condor aircraft, which has been operating in service since 1995.

Shimon Eckhaus, IAI's Corporate VP for Marketing & Business Development said: "After many years of coordinated effort, we take pride in signing this contract for the supply of the three AEW aircraft to the Indian Air Force."

Israel Livnat, IAI's Corporate VP and President of Elta Systems said: "Signing this contract is full recognition of Elta's state-of-the-art technologies and Elta's position in developing electronic defense systems. The Indian Air Force will receive an excellent product, which will assist in safeguarding India. I would like to acknowledge and congratulate all of the people who have worked hard to make achieve this contract signing."

Established in 1953, Israel Aircraft Industries, Ltd. (IAI) is Israel's largest high-tech concern and a globally recognized leader for the defense and commercial markets. IAI provides unique and cost-effective technological solutions for a broad spectrum of needs in space, air, land, sea and homeland defense. In fulfilling overseas contracts, the company works with domestic partners through technology transfer and other agreements.

IAI is an established leader in a vast number of fields including: unmanned air and ground vehicles, radars, secure communications, AEW, EW, ELINT/ESM, SIGINT and COMINT/COMJAM, air-to-air refueling, maintenance, upgrading and conversion of military aircraft and helicopters, Anti-Tactical Ballistic Missiles (ATBM), optronic payloads, navigation, smart weapons, missiles, commercial satellites and launchers, mine detection, clearing and breaching systems and many other core technologies, products and services.

IAI holds the prestigious ISO 9001 certification and its products and technologies are fully backed by comprehensive Integrated Logistic Support (ILS), training, and complete after-sales service.

Elta Systems Group, a wholly owned subsidiary of IAI, specializes in a wide variety of defense electronic systems and products. The Group operates as a Defense Systems house based on electromagnetic sensors (Radar, Electronic Warfare and Communication) and Information Technology (IT). Elta Systems products are designed for intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR), Early Warning and Control, Self-Protection and Self-Defense and fire control applications.

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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