Elbit Systems — Capital/Financing Update 2007

Mar 28, 2007

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Elbit Systems Awarded $10 Million Contract to Supply Coastal Surveillance System to Lithuania

Haifa, Israel March 28 - Elbit Systems Ltd. (NASDAQ: ESLT) announced that it was awarded a $10 million contract for delivery and commissioning of an integrated coastal surveillance system to Lithuania. Deliveries are scheduled for the end of 2007.

The project is funded by the European Union (EU), Schengen facility program. Under the terms of the contract, Elbit Systems will furnish coastal sites with monitoring and surveillance capabilities. The system will enable complete coverage of the entire coastline against smuggling and other illegal border activities.

Elbit Systems will provide a complete turn-key project including infrastructure, communication, command and control software, building of towers and placement of hierarchical control rooms. Full support of the system starts with commissioning and continues through training and complete Integrated Logistics Support (ILS).

The system employs both radar and electro-optic coverage of the coastline using the latest coastal radar technologies and video surveillance systems. It provides long-range surveillance by day and night, and in conditions of reduced visibility. All sensors data and other inputs are routed through a series of command and control rooms, built in hierarchical fashion, to enable data fusion and processing for all levels of decision makers.

The system is based on a coastal surveillance and management C4I software, employing unique and advanced features to enable easy operation, while simplifying control by increasing the level of automatic and autonomous operation. The system employs advanced data processing, fusion and sharing capabilities, enabling simultaneous control of multiple remote coastal sites, from single or multiple C[2] workstations (on a client-server basis). It also includes an AIS (Automatic Identification System) and DF (Direction Finders) system.

According to Mr. Uri Dobkin, General Manager of Elbit Security: "In recent years we see an increased demand for smarter and more autonomous border management systems. This system is built on the concept of providing highly proficient data fusion and processing capabilities to provide a valuable decision making and enforcement tool for border guard forces around the world. The system employs

field proven technologies which are available at Elbit Systems, to provide the most advanced systems of its kind today. The system has already been implemented in countries around the globe."

About Elbit Systems Ltd.

Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Elbit Systems Group, which includes the company and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaissance ("C4ISR"), advanced electro-optic and space technologies, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and equipment. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications.

Contacts:

Company Contact: IR Contact: Joseph Gaspar, Corporate VP & CFO Ehud Helft / Kenny Green Dalia Rosen, Director of Corporate Communications Elbit Systems Ltd G.K. Investor Relations Tel: +972-4-8316663 Tel: 1-866-704–6710 Fax: +972-4-8316944 Fax: + 972 - 3 - 607 – 4711 E-mail: gspr@elbit.co.il E-mail: info @gkir.com daliarosen@elbit.co.il

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