Elbit Systems Ltd. Selected for the Brazilian Air Force F-5 Aircraft Upgrade Program.

HAIFA, Israel--(BUSINESS WIRE)--October 22, 1998--Elbit Systems Ltd. (NASDAQ-NM Symbol: ESLTF) announced today that the Brazilian Air Force has selected the proposal submitted by the Company to upgrade its F-5 aircraft, subject to a successful conclusion of a detailed contractual agreement between the parties.

The Company expects to promptly enter into negotiations to finalize a detailed contract, including the value of the contract, within the coming months. If such a contract is reached, its value is expected to be material to the Company.

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 applications.

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.