Elbit Systems — Capital/Financing Update 2004

Mar 14, 2004

במרס200414

לכבוד רשות ניירות ערך כנפי נשרים 22 םירושלי א.ג.נ.,

ידיווח מיד – ( "החברה" מ ) "מערכות בעט יאלב : הנדון

לרשות ניירות ערך6K"ח ולהגישה כדו,היום שבכוונתנו לפרסם יווח מיידי ד ב " מצ .האמריקאית

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Business News

Elbit Systems Contract for its Portion of the Turkish Army M60A1 Tank Modernization Program Becomes Effective

Value of contract signed with Israel Ministry of Defense $183 million

Haifa, Israel, March 14, 2004 - Elbit Systems Ltd. (NASDAQ: ESLT) today announced that following receipt of all necessary approvals, the definitive agreement for Elbit Systems' portion of the Turkish Army M60A1 tank Modernization Program became effective. The contract, in the amount of approximately $183 million, was signed with the Israel Ministry of Defense, with deliveries to be completed over a four- year period.

The contract is for the supply of electronic and electro-optical fire control systems, electrical gun and turret drive systems, and support equipment for the Turkish M60A1 Modernization Program. Elbit Systems' contract will be performed within the framework of the agreement for the Turkish M60A1 Modernization Program between Israel Military Industries Ltd. and the Turkish Ministry of Defense.

Joseph Ackerman, President and CEO of Elbit Systems, commented: "The Turkish M60A1 Modernization Program, in which we are performing a substantial part, reflects Elbit Systems' advanced technological capabilities that were developed for the Israel Defense Forces' Merkava Main Battle Tank. These capabilities will contribute significantly to the Turkish Army's upgraded M60A1 tanks. This major program strengthens Elbit Systems' position as a world leader in the upgrade market for combat vehicle and other platforms, in which we continue to pursue additional opportunities."

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, ground and naval systems, command, control, communications, computers and intelligence (C4I), advanced electrooptic 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, VP Finance Ehud Helft/Kenny Green Elbit Systems Ltd Gelbart Kahana 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

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