Elbit Systems Purchases Balance of Shares of Kinetics

HAIFA, Israel, April 7 /PRNewswire-FirstCall/ -- Elbit Systems Ltd.
(NASDAQ: ESLT) (the "Company") announced today that it completed the purchase
of the shares of its previously 51%-owned subsidiary Kinetics Ltd.
("Kinetics"). Under the transaction the Company purchased the remaining 49%
of the shares from Kinetics' minority shareholders. The total consideration,
which was paid in cash, for the 49% of the shares was $110 million, which
could increase up to an additional approximately $8 million pending Kinetics
2009 financial results.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080408/300441 )
According to the purchase agreement, Kinetics' current senior management
will continue in their present capacities for up to a period of 12 months
following the closing.
Kinetics, based in Airport City, Israel, and its wholly-owned U.S.
subsidiary Real-Time Laboratories, LLC., are engaged in the development and
manufacture of systems and products in the field of advanced life support and
environmental controls, such as climate control systems, biological and
chemical protection systems for combat vehicles. It also develops and
manufactures other products for land and airborne applications, such as
hydraulics, fuel, braking and suspension systems, auxiliary power units for
land vehicles and hydraulic systems for aircraft.Kinetics main customers are
in Israel, Europe and the United States.
Joseph Ackerman, President and CEO of Elbit Systems, commented: "We
welcome Kinetics' dedicated employees to the Elbit Systems family. The
acquisition of the balance of Kinetics' shares compliments our long-term
strategy of growth through mergers and acquisitions of complementary
companies with high synergistic value. Kinetics areas of business complement
those of Elbit Systems in the area of combat vehicles, and working together
as one company will bring about added value and further strengthen our
position as a global leader in this area."
About Elbit Systems
Elbit Systems Ltd. is an international defense electronics company
engaged in a wide range of defense-related 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
air vehicle (UAV) systems, 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 and developing new technologies for
defense, homeland security and commercial aviation applications.
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.
Contacts:

Company Contact:
Joseph Gaspar, Executive VP & CFO
Dalia Rosen, Head of Corporate Communications
Elbit Systems Ltd
Tel: +972-4-8316663
Fax: +972-4-8316944
E-mail: j.gaspr@elbitsystems.com
dalia.rosen@elbitsystems.com

IR Contact:
Ehud Helft / Kenny Green
G.K. Investor Relations
Tel: +1-646-201-9246
E-mail: info@gkir.com

SOURCE Elbit Systems Ltd

Contacts: Company Contact: Joseph Gaspar, Executive VP & CFO, Dalia Rosen,
Head of Corporate Communications, Elbit Systems Ltd, Tel: +972-4-8316663, Fax:
+972-4-8316944, E-mail: j.gaspr@elbitsystems.com,
dalia.rosen@elbitsystems.com; IR Contact: Ehud Helft / Kenny Green, G.K.
Investor Relations, Tel: +1-646-201-9246, E-mail: info@gkir.com