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Israel Aerospace Industries Ltd.

IAI's Elta Systems Group Awarded $8 Million Contract For Helicopter Self-Protection Systems

Jan 31, 2006

DEFEXPO 2006, India - January 31, 2006 - An undisclosed customer awarded Elta Systems Group, a Group and Subsidiary of Israel Aircraft Industries (IAI), an $8 million contract for its helicopter self-protection systems (SPS). The systems will be installed on Mi-8 and Mi-17 helicopters to protect forces operating in dangerous areas, from shoulder-launched missile (MANPADs) attack. This order is the first batch from this customer for the SPS system.

The SPS is an anti-missile radar-based self-protection system designed to combat terrorist missile attacks. The SPS continuously scans for potential threats. Once a threat is detected, the radar confirms it and automatically activates timely counter measures to divert the incoming missile.

The Israel Civil Aviation Authority (CAA) lately certified Elta's commercial version of the SPS named Flight Guard (TM), using specially developed dark flares, to protect Israeli passenger aircraft from terrorist missile attacks. The SPS is used by over two hundred aircraft in over fifteen countries and is field proven on Israel Air Force aircraft and helicopters.

Israel Aircraft Industries is a recognized leader in the aerospace and defense industry and Israel's largest industrial exporter. IAI's Elta Systems Group is one of Israel's leading defense electronics companies and a leader in Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR), Early Warning and Control, Home-Land Security (HLS), Self-Protection and Self-Defense and Fire Control applications.

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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