Elbit Systems Subsidiary VSI Receives Orders Worth Approximately $15 Million From Boeing for Low-Rate Initial Production of Joint Helmet-Mounted Cueing System.

Business Editors

HAIFA, Israel--(BUSINESS WIRE)--Nov. 27, 2000

Elbit Systems Ltd. (NASDAQ/NM Symbol: ESLTF) ("the Company") today announced that its subsidiary, Vision Systems International (VSI), jointly owned with Kaiser Aerospace and Electronics, has received orders worth approximately $15 million from the Boeing Company for low-rate initial production of the Joint Helmet-Mounted Cueing System (JHMCS).

The lightweight JHMCS will allow pilots to aim air-to-air missiles, air-to-ground weapons and various sensors, by just looking at the target and pressing a switch. Additionally, the pilot is presented mission-critical information such as airspeed and altitude, without the need to take his eyes off the target. This unique capability to cue weapons at high off-boresight angles provides critical superiority and greatly enhances fighter aircraft lethality and survivability.

Boeing issued the orders for low-rate initial production of the JHMCS, for which it recently received the U.S. Navy's approval, as part of the F/A-18 E/F Super Hornet aircraft production program. In addition to the F/A-18, the JHMCS is to be deployed on the F-15, F-16 and F-22 aircraft.

Stephen Winkler, Boeing JHMCS Program Manager, said, "This milestone signifies the success of our engineering and manufacturing development efforts and represents the transition to production. The system has been proven effective and safe in roughly 275 flight tests, improving air-to-air and air-to-ground mission effectiveness as well as pilot's situational awareness."

Vision System International (VSI), based in San Jose, Calif., supplies the JHMCS to Boeing, the primary integrator of the system and responsible for its integration on the F/A-18 and F-15 aircraft. Lockheed Martin is responsible for the integration of JHMCS on the F-16 and F-22 aircraft.

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.