Undisclosed America-based Customer Purchases Hermes 450 and Skylark UAVs

Released on Monday, September 01, 2008

Haifa, Israel, 1 September, 2008 - Elbit Systems Ltd. (NASDAQ: ESLT) announced today that it was awarded a contract to supply Hermes® 450 UAV systems to a country in the Americas for the total of approximately $25 million. The contract also includes Skylark® I systems, all to be delivered within a year.

Hermes 450® is a unique Elbit Systems development and has been the base platform of the IDF's operational UAV fleet as well as the basis for the UK's armed forces' UAV program Watchkeeper, the largest such program in Europe. The Hermes® 450 UAVs are used extensively in armies worldwide, including active war zones such as Iraq and Afghanistan. So far, the Hermes 450® has accumulated over 100,000 operational flight hours.

Skylark® is a mini/man-pack UAV system, equipped with features derived from Elbit Systems' Hermes® family of larger UAVs. The system is operational with the IDF's Ground Force's Command and i n several other armed forces. Skylark® is currently operationally active in several theatres of the global war on terror, with over 10,000 successful operational sorties and a world record in high altitude flights, exceeding 15,000 feet. The Skylark® systems have already been purchased by numerous customers worldwide.

Haim Kellerman, General Manager of Elbit Systems UAS Division said: " We are proud to report another link in the chain of successes, with a new order from a new customer, attesting to the long -standing quality and operational abilities of our UAVs.. Hermes® 450 has proved its capabilities and reliability in the many years of operational performance," he added, " Following the current high demand for UAV's, with requirements for quick delivery for operational needs, the Hermes 450® in particular, Elbit Systems' UAV Division is fully prepared to meet the full range of customers' demands and needs".