Elbit Systems, Defense Ministry sign $200m digital army contract

Rafael and Tadiran Systems will be major subcontractors for the program. CEO Joseph Ackerman: We're very proud the IDF selected us.

Elbit Systems (Nasdaq:ESLT; TASE:ESLT) announced that today it signed an agreement with the Israel Ministry of Defense for the IDF Ground Forces Digitalization Program, in an amount of approximately $200 million. The digital army program, (known in Hebrew as ''Tsva Yabasha Digitali'' or ''Tsayad'') which will also include an additional material amount of US Foreign Military Funding (FMF) funding, will be performed over a ten-year period.

Elbit Systems was selected approximately two years ago by the Israel Ministry of Defense to be the prime contractor for the digital army program. Rafael Armament Development Authority Ltd. and Tadiran Systems Ltd. will serve as Elbit Systems' major subcontractors. Within the framework of the program, all land forces operations will be computerized (command, control and communications or C³), integrated and interfaced with new and advanced applications.

Elbit Systems will supply the Israel Defense Force (IDF) with computerized systems down to the single soldier level. The systems will facilitate transmission of integrated, real time situation pictures to and from all battlefield and command echelons.

The program calls for supply and support of all hardware and software, including command and control stations, data processing and distribution systems. It will enable force coordination at all levels, access to updated situational pictures, improved overall operational capabilities, including survivability and accuracy, and more efficient utilization of personnel and other resources.

Elbit Systems president and CEO Joseph Ackerman stated, "The digital army program, which will be performed over a number of years, is significant to Elbit Systems both because of its scope and its contribution to our technology base. We are proud that the IDF has selected us to lead the program."

Published by Globes [online], Israel business news - www.globes.co.il - on Monday, December 13, 2004

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