HAIFA, Israel, March 16, 2011 /PRNewswire via COMTEX/ --
Ltd. (NASDAQ and TASE: ESLT) ("Elbit Systems") announced today the signing of
a founder's agreement (the "Agreement") with Israel Aerospace Industries Ltd.
("IAI") to establish a joint company and a limited partnership (collectively
the "Joint Entity") to perform a potential project of purchasing and
maintenance of advanced training aircraft, as well as additional services
(the "Project"), for the Israeli Ministry of Defense (the "MoD").
(Photo: http://www.newscom.com/cgi-bin/prnh/20080408/300441 )
The Joint Entity established under the Agreement, will be equally owned
(subject to required regulatory approvals), and will supply the MoD with the
products and services required for the Project's execution. Certain portions
of the Project's work scope will be acquired from IAI and Elbit Systems,
respectively, in accordance with a work sharing plan determined by the two
To the best of Elbit Systems' knowledge, the MoD is currently reviewing
contractual possibilities with regards to the Project, and in this context
has provided to Elbit Systems and IAI a request for information (RFI). It is
the intention of the two companies to submit a response to the RFI in the
coming days through the Joint Entity.
To the extent that there will be a contract between the Joint Entity and
the MoD with regards to the Project, it is expected that its scope will be
significant and that it will be performed over a long-term period. In the
framework of a contract for the Project, it is also expected that the Joint
Entity will seek sources of financing for the establishment of infrastructure
and for the operation of the Project, as well as to purchase from aircraft
manufacturers and other suppliers the aircraft and additional equipment
required for the Project.
It is noted that at the time of this announcement, the Joint Entity and
MoD have not yet signed an agreement for the Project and that there is no
certainty that an agreement will be signed.
According to the Agreement, the scope of the Project will be divided to
the extent possible equally between Elbit Systems and IAI, and if required,
balancing arrangements will be established between the two companies.
About Elbit Systems
Elbit Systems Ltd. is an international defense electronics company
engaged in a wide range of programs throughout the world. The Company, which
includes Elbit Systems and its subsidiaries, operates in the areas of
aerospace, land and naval systems, command, control, communications,
computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned
aircraft systems ("UAS"), advanced electro-optics, electro-optic space
systems, EW suites, airborne warning systems, ELINT systems, data links and
military communications systems and radios. The Company also focuses on the
upgrading of existing military platforms, developing new technologies for
defense, homeland security and commercial aviation applications and providing
a range of support services.
For additional information, visit: http://www.elbitsystems.com.
This press release contains forward-looking statements (within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended) regarding Elbit
Systems Ltd. and/or its subsidiaries (collectively the Company), to the
extent such statements do not relate to historical or current fact. Forward
Looking Statements are based on management's expectations, estimates,
projections and assumptions. Forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, as amended. These statements are not guarantees of future performance
and involve certain risks and uncertainties, which are difficult to predict.
Therefore, actual future results, performance and trends may differ
materially from these forward-looking statements due to a variety of factors,
including, without limitation: scope and length of customer contracts;
governmental regulations and approvals; changes in governmental budgeting
priorities; general market, political and economic conditions in the
countries in which the Company operates or sells, including Israel and the
United States among others; differences in anticipated and actual program
performance, including the ability to perform under long-term fixed-price
contracts; and the outcome of legal and/or regulatory proceedings. The
factors listed above are not all-inclusive, and further information is
contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is
on file with the U.S. Securities and Exchange Commission. All forward-looking
statements speak only as of the date of this release. The Company does not
undertake to update its forward-looking statements.
SOURCE Elbit Systems Ltd