Elbit Systems Ltd. (NASDAQ and TASE: ESLT) ("Elbit Systems") announced today that TOR - Advanced Flight Training ("TOR"), its partnership with Israel Aerospace Industries Ltd. ("IAI"), established in order to perform the Israeli Air Forces' ("IAF") future trainer program (the "Project"), has reached an agreement with the Israel Ministry of Defense ("IMOD") regarding a contract in a total amount of approximately $603 million. Out of this amount, Elbit Systems' share is valued at approximately $420 million, for performing services and providing systems as a subcontractor to TOR.
The contract is expected to be signed in the coming weeks, following the finalization of several financing procedures. In order to facilitate meeting the Project's schedule, TOR received an interim purchase order and financing from IMOD, valued at approximately $27 million.
In the establishment phase of the Project, Elbit Systems will establish an enhanced logistic support and maintenance infrastructure for the new trainer as well as an advanced ground training array. The new, advanced avionics systems to be supplied by Elbit Systems for the Project will improve the readiness of the IAF's pilots in operating next-generation aircraft. Elbit Systems' share in this phase of the Project is valued at approximately $110 million, to be performed over three years.
During the operational phase of the Project, Elbit Systems will provide logistics services for the trainer and the new aircraft array, valued at approximately $310 million, to be performed over approximately twenty years.
Elbit Systems President and CEO Joseph Ackerman commented: "We are proud to take part in yet another important project for the IMOD and the IAF. In recent years, we have provided the IAF with advanced avionics systems and training infrastructure, as well as maintenance and logistics support services. Our selection attests to the customer's high satisfaction with the achievements recorded in past projects, in terms of reliability, availability, cost efficiency and improvement of operational capabilities."
Elbit Systems Aerospace Division's Co-General Manager, Yoram Shmuely, commented: "The IAF's future trainer program marks a significant milestone in the Aerospace Division's activities, and I congratulate and thank the Division's employees for their contributions in achieving this selection. I believe that we will accomplish significant achievements in this important project, as we have in the past in other Air Force-related projects both in Israel and worldwide".
Source: Elbit Systems Ltd.
Date: Sep 10, 2012