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Elbit Systems Capital/Financing Update 2005

Sep 1, 2005

6762_rns_2005-09-01_d59bf920-91bd-4459-8633-43f1ff2bc212.pdf

Capital/Financing Update

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Elbit Systems and IAI will jointly supply UAV Systems Valued at $150 million to the Turkish MOD

Each Company's Share Will Amount to Approximately $75 Million

Haifa, Israel, September 1st, 2005 Elbit Systems Ltd. (Nasdaq: ESLT), ("Elbit Systems") announced, further to its announcement dated April 18, 2005, the entering into effect of the contract to supply the Turkish Army with Unmanned Air Vehicle (“UAV”) systems, signed in May 2005 by IUP, an equally-owned partnership between Elbit Systems and Israel Aircraft Industries (“IAI”). IUP will act as the major subcontractor to the TUSAS Aerospace Industry (TAI) for this program and will deliver the UAV systems to the Turkish MOD over a three-year period.

IUP’s contract is valued at $150 million and will be divided equally between Elbit Systems and IAI. The UAV systems will be operated by the Turkish Armed Forces.

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 reconnaissance ("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 www.elbitsystems.com

Contacts :

Company contact

IR Contacts

Ilan Pacholder, Corporate Secretary and Ehud Helft/Kenny Green VP Finance & Capital Markets Elbit Systems Ltd. GK International Tel: 972-4 831-6632 Tel: 1-866-704-6710 Fax: 972-4 831- 6659 Fax: 972-3-607-4711 [email protected] [email protected] [email protected]

STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.