Elbit Systems Ltd. (NASDAQ/NM symbol: ESLTF) announced today the establishment of a wholly-owned subsidiary in Austria, ESL Advanced Information Technology GmbH ("AIT"). Subsequent to its establishment AIT acquired the defense operations of Alcatel Austria.
The new subsidiary will specialize in command and control systems, software-intensive systems, telecommunication systems and projects for customers in Austria and other countries in the region.
Recently AIT was awarded a contract worth $10 million by the Austrian Ministry of Defense for the supply of Artillery Command and Control systems for the Austrian Army. Elbit Systems expects additional orders of similar size from the Austrian Ministry of Defense in the upcoming years.
Joseph Ackerman, president and CEO of Elbit Systems, stated, "The establishment of AIT and the acquisition of Alcatel's defense operations in Austria are part of the Company's strategy of providing customer support by establishing technical support centers adjacent to its main customers and of expanding its business through the acquisition of complementary capabilities. We believe that AIT will further strengthen our presence in Austria and serve as a base for Elbit Systems' business operations in Austria and other countries in the region."
The European market constitutes approximately 40% of Elbit Systems' worldwide sales. The Company presently performs various projects in both NATO and non-NATO-member European countries including Holland, Germany, Italy, Turkey, Austria, Switzerland, and Romania.
Published by Israel's Business Arena on January 19, 2000.