Elbit Ltd. explores a strategic split of its business segments.HAIFA, Israel--(BUSINESS WIRE)--Dec. 7, 1995--Elron Electronics Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ELRNF), a leading multinational high technology holding company, hereby attaches the release of its 37% held affiliate, Elbit Ltd. (NASDAQ:ELBTF), which was released earlier today. -0- Elbit Ltd. (Nasdaq: ELBTF) announced today that the Company's Board of Directors approved in principle the exploration of a strategic split of Elbit's business segments into three companies in the Defense, Healthcare and Commercial (mainly communications) businesses, and has requested the Company's management to examine the various aspects involved in such a move. The goal of this proposal is to exploit the potential that was created within the Company as a result of its growth and diversification over the past few years, and to allow greater business focus, expand opportunities for strategic partnerships, encourage controlled growth and improved profitability, which should result in an increased overall value for its shareholders. Should the split be effected, it is expected that the three entities will operate as separate publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . The proposal is subject to receipt of all necessary approvals, permits and licenses required by law, both in Israel and in other applicable countries. The requests for approvals have not been submitted, and there can be no assurance that they will be received, or that this proposal will be implemented as set forth above. Upon final approval of this proposal by the Board of Directors, it will be submitted for approval to the Company's shareholders. Under the proposed plan, the three new companies would be organized as follows: Elbit Defense Systems (EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. ) will consist of all the Company's activities in the worldwide defense area, including large-scale upgrade and modernization programs, development and production of advanced electronic systems and provision of overall system solutions. EDS will also include its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , EFW EfW Energy From Waste EFW Estimated Fetal Weight EFW Emergency Feedwater EFW Electric Fusion Welded (pipe) EFW Electric Field and Wave Experiment (Cluster spacecraft) Inc., of Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. , a U.S. defense electronics company engaged in a wide range of airborne and ground systems for the U.S. government and others. Additionally, EDS will include the Company's holdings in Silver Arrow Silver Arrow might refer to
Healthcare will include Elscint Ltd., in which Elbit holds a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail , the ultrasound businesses of Elbit Ltd. (including Diasonics, Vingmed and Elscintec product lines) and the Medical Centers' activities. Overall sales of the Company's healthcare businesses in 1995 are expected to exceed $500 million. The new company which will act in the Commercial field, will include primarily Elbit's activities in data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. , video products and systems for industrial applications. The Communication businesses, which will be the primary focus of this new company, includes Fibronics Ltd., and Elbit's telephony and multimedia activities. Fibronics is engaged in the development, manufacturing and marketing of communication systems, local area networking and internetworking products and solutions for medium and large-scale organizations around the world. The video products business includes the manufacturing and marketing of color not of the white race; - commonly meaning, esp. in the United States, of negro blood, pure or mixed. See also: Color television sets for Europe and Israel. The industrial activity includes Elbit Vision Systems Ltd. (EVS EVS European Voluntary Service EVS Environmental Science EVS Electric Vehicle Symposium EVS Enhanced Vision System EVS environmental studies EVS European Values Study EVS Electronic Verification System EVS Extreme Voltage Shutdown ) and Inframetrics, Inc. EVS specializes in a unique image processing image processing Set of computational techniques for analyzing, enhancing, compressing, and reconstructing images. Its main components are importing, in which an image is captured through scanning or digital photography; analysis and manipulation of the image, accomplished technology developed by Elbit, which has been applied successfully in the textile industry, and which has many other potential industrial applications. EVS has gained international recognition and the Company believes that thus far, it does not have any significant competitors. Inframetrics is engaged in the development and manufacture of thermal imaging systems for industrial and paramilitary applications. Overall sales of the Company's Commercial businesses in 1995 are expected to be approximately $120 million. Emmanuel Gill, President of Elbit Ltd., commented, "The proposal constitutes a further step of prime significance in the Company's development, from the period when the Company's activities were focused mainly in the defense area, through the strategic diversification into commercial fields, and including the significant expansion through acquisitions and mergers of complementary businesses which have been accomplished in recent years. These lines of business have now reached a level of self reliance which enables each area to develop independently through the full realization of its technology, human resources and business advantages that Elbit has attained in recent years." Mr. Gill further stated, "This proposal is expected to enable Elbit to properly prepare to meet the challenge of a dynamic business environment, and to focus its strategies in the areas in which it will decide to develop in the future." "First and foremost among the factors to be considered in implementing these strategic changes will be the interests of the new companies, their customers, employees and shareholders," concluded Mr. Gill. Elbit Ltd. and its subsidiaries designs, develops, manufactures and markets a variety of products and advanced electronics systems for the healthcare, defense, industrial and commercial markets. CONTACT: Elbit Ltd., Haifa Ida Keidar or Arie Tal, 011-972-4-315-524; or Morgen-Walke Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of investors: Donna N. Stein or Evan Smith, 212-850-5600 press: Brian Maddox, 212-850-5661 |
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