Elbit Systems Ltd. Signs Letter of Intent to Acquire the Assets of International Enterprises, Inc.

HAIFA, Israel--(BUSINESS WIRE)--March 24, 1999--Elbit Systems Ltd. (NASDAQ/NM: ESLTF) announced today that its subsidiary, EFW Inc., of Fort Worth, Texas, has signed a letter of intent to acquire the assets of International Enterprises, Inc. ("IEI"), a privately-held company located in Talladega, Alabama. IEI provides repair, maintenance and logistics support for various military electronics systems installed on aircraft and ships for the U.S. military and other customers worldwide. EFW currently provides repair, maintenance and logistics support for electronics equipment principally for the U.S. military.

Upon completion of the transaction, it is expected that IEI's activities will be conducted as a subsidiary of EFW in Talladega, with the current management team and workforce. The transaction is subject to the parties entering into a detailed acquisition agreement and receiving applicable approvals.

Commenting on the agreement, Joseph Ackerman, President and CEO of Elbit Systems, said, "The planned acquisition of IEI illustrates Elbit Systems and EFW's strategy to expand our activities in the maintenance and logistics support services market. We believe that this segment of the defense industry offers growth opportunities for Elbit Systems as armed forces worldwide increasingly look to optimize their defense budgets by outsourcing their support services."

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 applications.