Elbit Systems — Capital/Financing Update 2005

Jan 6, 2005

==> picture [134 x 53] intentionally omitted <==

AUDIT COMMITTEE AND BOARD OF DIRECTORS OF ELBIT SYSTEMS APPROVED THE AGREEMENTS SIGNED WITH KOOR INDUSTRIES REGARDING THE PURCHASE OF SHARES IN TADIRAN COMMUNICATIONS

Haifa, Israel, January 6, 2005 - Elbit Systems Ltd. (Nasdaq: ESLT), (“Elbit Systems”) announced, further to its announcement of December 27, 2004 regarding the transaction with Koor Industries Ltd. (“Koor”) (NYSE: KOR) relating to Elbit Systems’ purchase of Koor’s shares in Tadiran Communications Ltd. (“Tadiran”) (TASE: TDCM), that yesterday the Elbit Systems’ Audit Committee and Board of Directors approved the agreements relating to the transaction. The members of the Audit Committee and Board of Directors participating in the discussions and approval of the transaction consisted only of directors who have no personal interest in the transaction.

Based upon this approval and a similar approval provided yesterday by the Board of Directors of Koor, the parties are proceeding in obtaining the remaining required approvals for the transaction.

---

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 Ehud Helft/Kenny Green and 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 pacholder@elbit.co.il ehud@gk-biz.com kenny@gk-biz.com

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.