Elbit Systems — Regulatory Filings 2007

Jan 30, 2007

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ELBIT SYSTEMS AND BULGARIAN MINISTRY OF DEFENSE ARE IN THE PROCESS OF CANCELLATION OF HELICOPTER MODERNIZATION CONTRACT

Haifa, Israel, January 30, 2007– Elbit Systems Ltd. (the “Company”) (NASDAQ:ESLT) announced that on January 29, 2007 the Company received notice from the Bulgarian Ministry of Defense of termination of the contract in the amount of €57 million for the modernization of Mi-24 and Mi-17 helicopters for the Bulgarian Air Force. The Company had previously announced the award of this contract on December 4, 2005. In the cancellation notice the Bulgarian Ministry of Defense requested a return of a portion of the amounts paid to date to the Company under the contract.

Over the past several weeks, Elbit Systems has been in discussions with the Bulgarian Ministry of Defense regarding a mutually acceptable cancellation of the contract. Moreover, the contract cancellation discussions with the Bulgarian Ministry of Defense have been based on appropriate compensation to the Company, and Elbit Systems does not anticipate that this matter will have a material adverse effect on the Company’s results of operations.

About Elbit Systems

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 Contacts Ilan Pacholder, Corporate Ehud Helft /Kenny Green Secretary and VP Finance & Capital Markets Elbit Systems Ltd. GK International 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

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.