Eltek Wins a Three-Year, Multi-Million Dollar Strategic Agreement with the Israel Aircraft Industries (IAI).PETACH-TIKVA, Israel -- Eltek Ltd. (NasdaqSC: ELTK): --Eltek was chosen following a highly contested tender --Company expects new agreement to generate revenues of approximately $4.5 million over a three year period Eltek Ltd. (NasdaqSC: ELTK), the leading Israeli manufacturer of advanced circuitry solutions, today announced it has expanded its relationship with Israel Aircraft Industries (IAI IAI Infection And Immunity (journal) IAI International Alliance for Interoperability IAI Institut für Angewandte Informatik IAI Inter-American Institute for Global Change Research IAI International Association for Identification ), signing a three-year, multi-million US Dollar strategic agreement to provide IAI with its high end PCBs for use in highly complex, mission critical avionics avionics (ā'vēŏn`ĭks), electronic instruments used in air or space flight; also the design and production of such instruments. Early planes had few instruments, but as aviation and aircraft became more complex, so did instrumentation. equipment and applications. Eltek is one of two PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. suppliers that had been chosen. IAI has already begun to place orders for Eltek's specialty PCBs under the new agreement. Commenting on the agreement, Arieh Reichart, President and Chief Executive Officer of Eltek, said: "We are honoured to have been chosen by IAI for this strategically important contract. Achieved following a strict evaluation strict evaluation - Call-by-value evaluation order is sometimes called "strict evaluation" because, in a sequential system, it makes functions behave as though they were strict, in the sense that evaluation of a function application cannot terminate before evaluation of the process, this competitive win is another validation of Eltek's unique and advantageous technological competencies and additional proof of the increased recognition these capabilities are gaining among top-tier customers. "I am very encouraged with the accelerated momentum we are experiencing in signing multi-quarter deals with both existing and new customers. The mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" award will further strengthen Eltek's long and successful relationship with IAI and provides us with new opportunities in Israel and abroad." Amnon Shemer, CFO See Chief Financial Officer. of Eltek commented: "This important win signifies our first multi-year multi-million contract ever achieved with IAI, while IAI is very well known for its highly demanding quality and performance standards. Eltek expects this agreement to generate revenues of approximately $4.5 million over a three-year period. Our growing success in winning this type of agreements will clearly benefit our overall corporate productivity and efficiency along with revenue stability, thus positively impacting our operating results." About the IAI Israel Aircraft Industries is globally recognized as a leader in developing military and commercial aerospace technology. This distinction is the result of nearly a half-century of designing, engineering and manufacturing, for customers throughout the world. Company sales in the last 5 years was 10.8 billion U.S. $ and IAI's net profit for this period was 323 million U.S. $. About Eltek Eltek is Israel's leading manufacturer of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI HDI Human Development Index (UNDP yardstick of human welfare) HDI Help Desk Institute HDI Humpty Dumpty Institute (New York, New York) HDI High Density Interconnect , multi-layered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. Eltek has invested heavily in upgrading its production facilities over the past five years. For more information, visit Eltek's World Wide Web site at www.eltekglobal.com. Eltek Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain matters discussed in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties including, but not limited to,statements regarding expected results in future quarters, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's filings with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission. |
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