Elbit Systems — Capital/Financing Update 2005

Nov 1, 2005

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Elbit Systems joint venture with Rockwell Collins, VSI, awarded JHMCS contracts valued at more than $100 million

Elbit Systems, Haifa, 1 November 2005 - Elbit Systems Ltd. (NASDAQ:ESLT) reported today that its U.S. subsidiary, Vision Systems International, LLC (VSI), a leader in advanced Helmet Mounted Display (HMD) technology, announced the receipt of several new contracts with a total potential value of more than $100 million.

The Boeing Company awarded VSI a contract for the delivery of more than 500 additional Joint Helmet Mounted Cueing Systems (JHMCS). VSI also received direct contracts from the United States Navy and Air Force for spares and test equipment in support of the JHMCS program.

Under the production contract, VSI will provide JHMCS systems, including spares, technical support and support equipment for the Full Rate Production – Lot 2 (FRP-2) acquisition. This procurement fills U.S. government domestic requirements for the USAF F-15 and F-16, ANG F- 15, USN F/A-18 Single Seat and Dual Seat platforms as well as foreign military sales production and spares commitments.

The JHMCS provides the pilot with “first look, first shot” high off-boresight weapons engagement capabilities. The system enables the pilot to accurately cue onboard weapons and sensors against enemy aircraft and ground targets while performing high-G aircraft maneuvers. Critical information and symbology, such as targeting cues and aircraft performance parameters, are graphically displayed directly on the pilot’s visor.

VSI was established in 1996 as a joint venture between EFW Inc., an Elbit Systems of America company and a subsidiary of Elbit Systems Ltd (NASDQ: ESLT), and Rockwell Collins (NYSE: COL) to develop, manufacture and support fixed wing HMDs worldwide. With a heritage of more than 35 years of design and development experience in display systems, VSI today is the leading supplier of fixed wing HMDs.

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In addition to the JHMCS, VSI is in development of the advanced HMD for the F-35 (JSF), in development of the QuadEye Night Vision Cueing system (NVCD) for the US Navy and in production on the DASH (Display and Sight Helmet) Generation IV HMD under multiple contracts to Lockheed Martin.

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.

Contacts

Company contactIlan Pacholder, Corporate Secretaryand VP Finance & Capital MarketsElbit Systems Ltd.Tel: 972-4 831-6632Fax: 972-4 831- 6659pacholder@elbit.co.il	IR ContactsEhudHelft/Kenny GreenGK InternationalTel: 1-866-704-6710Fax: 972-3-607-4711ehud@gk-biz.comkenny@gk-biz.com

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