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Elbit Systems — Capital/Financing Update 2005
Mar 27, 2005
6762_rns_2005-03-27_d352e992-295c-425e-af22-198f6011d275.pdf
Capital/Financing Update
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Elbit Systems Completes the Acquisition of the Assets of Israel Military Industries’ Aircraft Systems Division
Haifa, Israel, March 27, 2005 – Elbit Systems Ltd. (NASDAQ: ESLT) announced today, further to its announcment dated January 4, 2004, that its wholly-owned subsidiary Cyclone Aviation Products Ltd. ("Cyclone") completed today the acquisition of the assets of Israel Military Industries Ltd. ("IMI") Aircraft Systems Division (the “Aircraft Division”) in Tirat Hacarmel, Israel for the price of approximately $7 million, a portion of which will be paid in cash and the balance through assumption of obligations of the Aircraft Division. The final purchase price is subject to adjustments. The transaction will be made through a whollyowned subsidiary of Cyclone.
The transaction was made possible following the signature of an agreement among the Israel Treasury Ministry, representatives of the employees, IMI and Cyclone, relating to the severance conditions of the Aircraft Division’s employees.
The Aircraft Division manufactures weapon pylons and external fuel tanks for fighter aircraft. The Aircraft Division’s customers include the Israel Ministry of Defense, the U.S. Department of Defense, U.S. aircraft manufacturers and other customers worldwide. The Aircraft Division’s revenues in 2004 were approximately $8 million.
Cyclone, located near Karmiel, Israel, is engaged in the development and manufacturing of structural assemblies for civil and military aircraft and in maintenance services for helicopters and aircraft. Cyclone employs approximately 350 employees.
Elbit Systems’ President and CEO, Joseph Ackerman, stated: “The acquisition of the activities of IMI’s Aircraft Systems Division, constitutes an important step for Elbit Systems in the realization of our strategy to participate in the privatization process in Israel and a further milestone in the process of consolidation of the Israeli defense industries.”
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
Ilan Pacholder, Corporate Secretary and VP Finance & Capital Markets Elbit Systems Ltd. Tel: 972-4 831-6632 Fax: 972-4 831- 6659 [email protected]
IR Contacts
Ehud Helft/Kenny Green
GK International Tel: 1-866-704-6710 Fax: 972-3-607-4711 [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.