Elbit Systems Receives Finalization of U.S. FMF Approval of Approximately $300 M for Israeli Digital Army Program

(Haifa, Israel, September 6, 2007) -- Elbit Systems Ltd. (NASDAQ: ESLT) reported that on September 5, 2007 it received finalization of funding approval of U.S. Foreign Military Financing (FMF) in a total amount of approximately $300 million for the FMF portion of the Israeli Digital Army Program (DAP). This is further to its announcement dated December 13, 2004, regarding the award to Elbit Systems of the prime contract frame agreement by the Israel Ministry of Defense (IMOD) for the DAP.

The U.S. FMF portion of the DAP is an integral part of the overall Program as awarded in 2004. The announcement in 2004 reported that the Program would include an additional material amount funded by U.S. FMF, and this FMF portion is reflected in the amount for which funding approval has now been obtained. Approximately $130 million of this amount has already been recorded in Elbit Systems' backlog. The FMF portion of the DAP will be performed by EFW Inc., an Elbit Systems of America company, as well as other U.S. subcontractors. Elbit Systems orders for the currently funded portions of DAP will be performed over several years.

Source : Elbit Systems Ltd.