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Homeland Security

RAFAEL-Elbit to Collaborate on DIRCM

RAFAEL AND ELBIT Systems Selected by the Israel Government to Jointly Deliver Advanced Protection Suite Against Shoulder-Launched Missiles for Israel's Civil Aircraft Fleet

14 June 2004 -- Elbit Systems Ltd. (NASDAQ: ESLT) and RAFAEL Armament Development Authority Ltd. announced today that RAFAEL and Elbit Systems, through its wholly owned subsidiary Elop Electro-Optics Industries Ltd. (El-Op), have formed a team to complete the development, manufacture and marketing of the advanced self-protection suite against Man Portable Air Defense Systems (MANPADS), also known as Shoulder-Launched Missiles.

The combined system is based on RAFAEL’s Britening™ Directed Infra-Red Counter-Measures (DIRCM) suite and on El-Op’s MUSIC (Multi-Spectral Infrared Countermeasure ) system and the team will complete the system development and engineering, already in advanced stages.

The companies have agreed that RAFAEL will lead the activities in the civil aviation markets, and El-Op will lead the activities in the military markets.

The Israeli Ministry of Transport (MOT) and the Ministry of Defense (MOD) have already selected the RAFAEL-ELBIT SYSTEMS protection suite as the long-term solution for the Civil Aviation Protection Plan.

The Israeli Civil Aircraft Protection Plan headed by the Israeli MOT and MOD and other national authorities, calls for a long-term, robust DIRCM solution for all its commercial aircraft. The strategic ELBIT SYSTEMS - RAFAEL teaming allows for focused synergy between the two reputable firms, providing outstanding advantages in combat experience, cutting-edge technologies, system and aircraft integration capabilities as well as direct contacts with customers – including the Israeli MOD, MOT and the three Israeli airlines; El-Al, Arkia and Israir.

”As the major electro-optics (EO) supplier to the Israeli Defense Forces we have accumulated vast experience with lasers and other EO systems. Our Multi-Spectral Fiber-Laser is eye-safe and provides an outstanding IR countermeasure source. Its maturity and design constitutes a pioneering solution in airborne lasers” says Haim Rousso, Elbit Systems Corporate VP and General Manager of El-Op. “Together with RAFAEL, our companies have pooled advanced technological know-how in complementary areas of expertise in order to offer this advanced solution”.

His RAFAEL counterpart David Zait, Corporate VP and Head of the Systems Division adds: “Our teaming with El-Op provides the Israel authorities with the most complete solution; providing the robustness to counter current and future threats, without impacting safety or civil aviation certification . Our goal is to function as a team and coordinate our joint activities with the Israeli authorities and national carriers to provide the most advanced and cost-effective solution in a very demanding time-frame."

About RAFAEL
RAFAEL is a government-owned company, with over 55 years of experience in the defense market. RAFAEL is Israel’s traditional technology development house, developing, manufacturing and supplying missiles, electro-optic systems, EW systems, communications, command & control systems, precision munitions, propulsion systems and much more. The company’s mission is “To provide innovative, state-of-the-art solutions to meet the most challenging demands of Israeli and international customers, while striving for growth and profitability”. RAFAEL has nearly 5000 employees and sales in 2003 reached $830M. For more about RAFAEL please visit Rafael’s website at http://www.rafael.co.il/

About Elbit Systems
Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world, in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaisance (“C4ISR”), advanced electro-optic and space technologies. The Company focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications.
For more about Elbit Systems, please visit our website at http://www.elbitsystems.com/

Contact at RAFAEL:
Gila Harel, Marketing Communications Manager
Tel: (972) 4-8791244
Fax: (972) 4-8794657
email: gilah@rafael.co.il

Contact at Elbit Systems:
Arie Tal, Corporate Communications Director
Tel: 972-4-831-6632
Fax: 972-4-831-6659
E-Mail : arietal@elbit.co.il



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