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Elbit Systems Ltd.
Advanced Technology Center
P.O.B 539, Haifa 31053
Israel

Tel: 972-4-8316663
Fax: 972-4-8316944
 
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Elbit Systems' Subsidiary El-Op to Upgrade Israeli Navy's Electro-Optic Observation and Surveillance Systems.

Upgrade Program Expected to Exceed $4.0 Million

Haifa, Israel, January 15, 2003 - Elbit Systems Ltd. (NASDAQ: ESLT), today announced that its wholly owned subsidiary, Elop ElectroOptics Industries Ltd. (El-Op), has received an order to upgrade the electro-optic observation and surveillance systems, previously supplied by El-Op to the Israeli Navy, which have been in operational service for more than ten years. Follow-on orders are expected for the upgrade of additional systems and the total program value is expected to exceed $4.0 million.

The Multi Sensor Integrated System (MSIS), to be upgraded by El-Op, has demonstrated its operational capabilities in surveillance, target acquisition, weapon aiming and fire control missions.

Within the scope of the upgrade program, the current thermal imaging Forward Looking InfraRed (FLIR) camera will be replaced by a new state-of-the-art third generation FLIR camera. Developed and produced in house by El-Op, the new FLIR will enable MSIS operators to receive high quality and long range video images. System electronics will also be upgraded.

The new generation MSIS is comprised of a daytime TV camera, in addition to the third generation FLIR, and a rapid laser rangefinder. The system features flexible compact sensor packaging, high performance stabilization and high sensitivity and resolution. The MSIS can be integrated with any naval fire control systems and is highly effective in helping to detect and destroy naval targets including terrorist boats.

Every element of the MSIS is manufactured in house including the FLIR camera, laser rangefinder and all optics, mechanical and electronic sub-systems and assemblies.

Mr. Haim Rousso, General Manager of El-Op commented: "With these upgrades the MSIS performance will improve substantially at night and under extreme weather conditions. Using the electro-optic systems, which we have developed, the Israeli Navy will now have another important advantage supporting today's operational objectives. This is particularly important in view of the increased need for anti-terror activity from the sea."


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