Elbit unit Elisra wins South Korean contract

The electronic warfare systems firm will provide systems for Korea's FA-50 jets.

Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) joint subsidiary Elisra Group has won a $7 million contract to supply airborne electronic warfare systems to Korean Aerospace Industries Co. Ltd. (KAI) for use Korean Air Force FA50 light attack jets.

Elisra will develop and produce prototype electronic warfare systems, which will be delivered to KAI over the next two years. KAI's business plan calls for delivery of systems for 60 jets over the next few years, and dozens more systems in a follow-on phase with a potential for export.

KAI has a Korean government contract to develop and build a domestic trainer and light attack jet by 2012. The Korean Air Force plans to procure 60 FA-50s in 2013.

Elisra CEO Yitzchak Gat noted the importance of the contract for the company, and hoped that the current contract would be followed by more orders.

Elbit Systems owns 70% of Elisra and IAI owns 30%. Elbit Systems' share rose 1.1% on Nasdaq on Friday to $45.15. The share fell 0.7% in early trading on the TASE today, against the market trend, to NIS 180.80.

Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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