Elbit Systems, Rafael to provide missile protection for Israeli civilian aircraft

A joint team of the two companies will complete development of the system and bring it to market.

Elbit Systems (Nasdaq:ESLT) subsidiary Elop Electro-Optics Industries, and Rafael Armament Development Authority, which is government-owned, have formed a team to complete the development, manufacture and marketing of a system to protect aircraft from Man Portable Air Defense Systems (MANPADS), also known as shoulder-launched missiles.

The combined system is based on Rafael's Britening Directed Infra-Red Counter-Measures (DIRCM) suite, and on El-Op’s MUSIC (Multi-Spectral Infrared Countermeasure ) system.

The companies said they had agreed that Rafael would lead the activities in the civil aviation markets, while El-Op will lead the activities in the military markets.

The Israeli Ministry of Transport and the Ministry of Defense have already selected the Rafael-Elbit Systems protection suite as the long-term solution for the Civil Aviation Protection Plan.

The Israeli Civil Aircraft Protection Plan calls for a long-term, robust DIRCM solution for all Israeli commercial aircraft.

Elbit Systems corporate VP Haim Rousso, who is general manager of El-Op, said, ”As the major electro-optics (EO) supplier to the Israeli Defense Forces, we have accumulated vast experience with lasers and other EO systems. Our Multi-Spectral Fiber-Laser is eye-safe and provides an outstanding IR countermeasure source. Its maturity and design constitutes a pioneering solution in airborne lasers” says Haim Rousso, Elbit Systems Corporate VP and General Manager of El-Op.

Rafael corporate VP and head of the Systems Division David Zait said, “Our teaming with El-Op provides the Israel authorities with the most complete solution; providing the robustness to counter current and future threats, without impacting safety or civil aviation certification."

Aircraft of El Al Israel Airlines (TASE:ELAL) are currently being equipped with the "Flight Guard" protection suite produced by Israel Aircraft Industries and Israel Military Industries. Flight Guard uses decoy flares to deflect incoming heat-seeking missiles. The protection suite being developed by Rafael and Elbit Systems is intended to eventually replace Flight Guard, which has aroused concerns over its safety in the event that flares are released where they might do damage. The new system is expected to be ready by the end of 2005, and, according to industry sources, has a potential market in the hundreds of millions of dollars.

Published by Globes [online] - www.globes.co.il - on June 14, 2004

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