Elbit to Establish Israeli MOD's Communications Equipment Supply

Sep 28, 2011 ASDNews Source : Elbit Systems Ltd.

Haifa, Israel - ElbitSystems Ltd. (NASDAQ and TASE: ESLT) ("ESLT") announced today that it was awarded a contract by the Israeli Ministry of Defense (IMOD) to supply, upgrade and provide maintenance under the Israeli Defense Forces' (IDF) communications equipment project. The project is valued at approximately $280 million, of which approximately half is designated for the supply of new communication systems over the next five years, and the balance is to be applied to the upgrade and maintenance of existing systems over a twenty-year period.

The military communications project is an IMOD's efficiency initiative, aimed at establishing a supply arrangement for advanced, operationally available and cost effective communication systems for the IDF.

Joseph Ackerman, President and CEO of Elbit Systems said: "The project we are establishing is a part of the IMOD's initiative to outsource the revamping of the IDF's communications inventory in order to make it more efficient. We intend to leverage our extensive operational experience and know-how in performing similar outsourcing projects for customers worldwide, in order to provide the IMOD and the IDF with the most high quality and cost-effective communications solution. A key part of the project will be performed in a development area, as part of the Israeli Government's policy to develop industries in the periphery, providing employment for dozens of local residents."