Elbit Systems — Regulatory Filings 2007

Dec 2, 2007

Elbit Systems

First agreement for Cyclone with the US Navy:

Elbit Systems' Subsidiary to Supply Fuel Tanks to the US Navy's F-18's

Signed initial contract valued at $2.4 million out of a total estimated at approximately $60 million

Innovative technology used to manufacture these Fuel Tanks

Haifa, Israel, December 2, 2007 – Elbit Systems Ltd. (NASDAQ: ESLT) announced that its subsidiary, Cyclone Aviation Products Ltd. (Cyclone), was awarded a contract to supply the US Navy 330 gallon Fuel tanks to be installed on its F-18's.

This contract constitutes a pivotal marketing breakthrough for Cyclone and the US Navy. The first phase of this contract amounts to $2.4 million and the total value is estimated at approximately $60 million. Deliveries are scheduled to take place between 2009 and 2013.

The 330 gallon Fuel Tanks are manufactured in a special coiling process (Filament Winding) designed to protect the Fuel Tanks from possible damage that may occur during onboard aircraft carrier fires.

Yoram Shmuely, Co-General Manager of Airborne and Helmet Systems at Elbit Systems, said, "The US Navy's decision to select Cyclone's Fuel Tanks for the first time, via tender, reflects the trust and recognition we have established among leading customers worldwide. I believe this contract will pave the way for further business in this fast-growing market characterized by advanced technologies and innovative composite materials."

Cyclone's core business is the development and manufacture of both metal and composite structural assemblies for aircraft, helicopters and UAVs. The company upgrades aircraft and performs maintenance as well as operates aircraft and helicopters such as the Grove G-120A, in IAF's flight school, moreover, Cyclone is also qualified as a testing facility for light aircraft. Recently, the company opened a new product line for 600 gallon Fuel Tanks and pylons allowing fighter jets to significantly increase their flight range. Cyclone's customer base includes the IAF, the U.S. Air Force, the U.S Army and the U.S Navy as well as several major aviation companies, such as Boeing, Lockheed Martin and Sikorsky.

For the past two years, Cyclone's CEO has been Mr. Reuven Avraham.

About Elbit Systems

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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"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense, homeland security and commercial aviation applications.

Contacts:

Company Contact:

Joseph Gaspar, Corporate VP & CFO Dalia Rosen, Director of Corporate Communications Elbit Systems Ltd Tel: +972-4-8316663 Fax: +972-4-8316944 E-mail: gspr@elbit.co.il daliarosen@elbit.co.il

IR Contact:

Ehud Helft / Kenny Green G.K. Investor Relations Tel: 1-646-201-9246 Fax: +972-3-607-4711 E-mail: info@gkir.com

THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS (WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED) REGARDING ELBIT SYSTEMS LTD. AND/OR COMPANIES IN THE ELBIT SYSTEMS GROUP, TO THE EXTENT SUCH STATEMENTS DO NOT RELATE TO HISTORICAL OR CURRENT FACT. FORWARD LOOKING STATEMENTS ARE BASED ON MANAGEMENT'S EXPECTATIONS, ESTIMATES, PROJECTIONS AND ASSUMPTIONS. FORWARD-LOOKING STATEMENTS ARE MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, AS AMENDED. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND INVOLVE CERTAIN RISKS AND UNCERTAINTIES, WHICH ARE DIFFICULT TO PREDICT. THEREFORE, ACTUAL FUTURE RESULTS, PERFORMANCE AND TRENDS MAY DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS DUE TO A VARIETY OF FACTORS, INCLUDING, WITHOUT LIMITATION: SCOPE AND LENGTH OF CUSTOMER CONTRACTS; GOVERNMENTAL REGULATIONS AND APPROVALS; CHANGES IN GOVERNMENTAL BUDGETING PRIORITIES; GENERAL MARKET, POLITICAL AND ECONOMIC CONDITIONS IN THE COUNTRIES IN WHICH THE ELBIT SYSTEMS GROUP OPERATES OR SELLS, INCLUDING ISRAEL AND THE UNITED STATES AMONG OTHERS; DIFFERENCES IN ANTICIPATED AND ACTUAL PROGRAM PERFORMANCE, INCLUDING THE ABILITY TO PERFORM UNDER LONG-TERM FIXED-PRICE CONTRACTS; AND THE OUTCOME OF LEGAL AND/OR REGULATORY PROCEEDINGS. THE FACTORS LISTED ABOVE ARE NOT ALL-INCLUSIVE, AND FURTHER INFORMATION IS CONTAINED IN ELBIT SYSTEMS LTD.'S LATEST ANNUAL REPORT ON FORM 20-F, WHICH IS ON FILE WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION. ALL FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS RELEASE. ELBIT SYSTEMS DOES NOT UNDERTAKE TO UPDATE ITS FORWARD-LOOKING STATEMENTS.