Elbit Systems' CEO Foresees Defense Industry Consolidation and Growth.

Business Editors

HAIFA, Israel--(BUSINESS WIRE)--Dec. 1, 2000

Elbit Systems Ltd. (NASDAQ: ESLTF) President and Chief Executive Officer, Joseph Ackerman, said that Elbit Systems is well positioned for growth in the wake of the merger with El-Op, a major player in the field of electro-optical systems for space, airborne, ground and naval applications. Elbit Systems is a provider of full-system integrated defense electronics systems, and a market leader in platform upgrades. With its value-drivers in place, Mr. Ackerman said the merger gives Elbit Systems greater competitive strength.

Mr. Ackerman told analysts and fund managers on Wednesday, November 29, at the fifth annual CIBC Oppenheimer Conference in New York, that Elbit Systems is "on schedule" with the corporate restructuring that was required as a result of the El-Op merger. Third quarter financial results, for the first time, were consolidated to include the merged companies.

Mr. Ackerman noted that Elbit Systems has reported continuous growth with a record backlog of approximately $1.4 billion as of September 2000. "Broadened core technologies, new market opportunities and economies of scale related to the recent merger, will contribute to the Company's future growth," Mr. Ackerman declared. "Our three-pronged strategy is based on building backlog, participation in the defense industry's consolidation, and leveraging defense products into commercial applications."

There has been a global trend, as seen in the US and Europe, of consolidation within the aerospace/defense industry. In 1998, there were 12 European defense companies. Since then, that number has dropped, government stakes have declined and total value has increased. Elbit Systems expects a similar trend to take place in Israel in the coming years. Mr. Ackerman commented, "As the leading non-government owned defense company in the sector, Elbit Systems will participate in the anticipated privatization and consolidation in the Israeli defense sector."

Elbit Systems presently has several investments, which hold promise for contributing to the enhancement of shareholder value based on commercial applications of defense technologies. In Mr. Ackerman's presentation, he discussed the Company's strategy of enhancing shareholder value through commercial applications in the areas of communication, space and medical equipment.

In summation, Mr. Ackerman characterized Elbit Systems' prospects for 2001 as "positive", based on current programs in place in major countries throughout the world, including the United States, Israel, NATO-European countries and others.

Concurrently with the CIBC Oppenheimer forum, Elbit Systems reported a $70 million order from the Israeli Ministry of Defense; a $40 million equipment contract for the Israeli Merkava Main Battle Tank; and a $15 million order from the Boeing Company for the initial production of its Joint Helmet-Mounted Cueing System (JHMCS), via its subsidiary, Vision Systems International (VSI), which is jointly owned with Kaiser Aerospace and Electronics.

About Elbit Systems Ltd.

Elbit Systems Ltd. is engaged in a wide range of defense-related airborne, ground and command, control and communications ("C3") programs throughout the world. The Company focuses on upgrading of existing military platforms and developing new technologies for defense application.

Forward looking statements with respect to the Company's business, financial condition and results of operations, in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filings.