Elbit Subsidiary in Canada Awarded Contract to Supply Underwater Sound System to South Korea

Elbit Systems Ltd. (NASDAQ: ESLT) and (TASE: ESLT) ("Elbit Systems") announced today that its wholly owned subsidiary in Canada, GeoSpectrum Technologies Inc. ("GTI"), was awarded a contract from STX Engine Co., to deliver a full end-to-end Underwater Sound Source System (USSS) and software package to the Republic of Korea ("ROK") Navy. The systems will be supplied by the end of 2018. The contract is in an amount that is not material to Elbit Systems.

This fully integrated, end-to-end system is based on GTI's Towed Acoustic Target, which has already been delivered to other Defence customers. It consists of an acoustic projector body, winch, handling package and power amplifier and will be used to test sonar systems for the ROK Navy's Harbor Underwater Surveillance System.

Elad Aharonson, Executive Vice President and General Manager of Elbit Systems ISTAR Division, commented: "We are honored to have been selected to supply high performance underwater sound systems for the ROK Navy. Underwater acoustics equipment, including sonars, acoustic communication and diverse acoustic components, is part of Elbit Systems' extensive maritime portfolio. I expect more and more customers to become aware of GTI's capabilities and leverage them to fulfill their mission needs."