First Agreement For Cyclone With the U.S. Navy

HAIFA, Israel -- Elbit Systems Ltd. announced that its subsidiary, Cyclone Aviation Products Ltd. (Cyclone), was awarded a contract to supply the U.S. Navy 330-gallon Fuel tanks to be installed on its F-18's.

This contract constitutes a pivotal marketing breakthrough for Cyclone and the U.S. Navy. The first phase of this contract amounts to $2.4 million and the total value is estimated at approximately $60 million. Deliveries are scheduled to take place between 2009 and 2013.

The 330-gallon Fuel Tanks are manufactured in a special coiling process (filament winding) designed to protect the Fuel Tanks from possible damage that may occur during onboard aircraft carrier fires.

Yoram Shmuely, Co-General Manager of Airborne and Helmet Systems at Elbit Systems, says, "The U.S. Navy's decision to select Cyclone's Fuel Tanks for the first time, via tender, reflects the trust and recognition we have established among leading customers worldwide. I believe this contract will pave the way for further business in this fast-growing market characterized by advanced technologies and innovative composite materials."

Cyclone's core business is the development and manufacture of both metal and composite structural assemblies for aircraft, helicopters and UAVs. The company upgrades aircraft and performs maintenance as well as operates aircraft and helicopters such as the Grove G-120A, in IAF's flight school; moreover, Cyclone is also qualified as a testing facility for light aircraft. Recently, the company opened a new product line for 600-gallon fuel tanks and pylons allowing fighter jets to significantly increase their flight range. Cyclone's customer base includes the IAF, the U.S. Air Force, the U.S. Army and the U.S. Navy as well as several major aviation companies, such as Boeing, Lockheed Martin and Sikorsky.

For the past two years, Cyclone's CEO has been Mr. Reuven Avraham.