Elbit Systems' Subsidiary Acquires 20% Interest in Sandel Avionics
May 31 2006 - 5:06PM
PR Newswire (US)
Furthers Expansion Into Commercial Aviation Market HAIFA, Israel,
May 31 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (NASDAQ:ESLT)
reported today that its U.S. subsidiary Kollsman, Inc. has acquired
a 20% interest in Sandel Avionics, Inc. ("Sandel") in consideration
for $12 million. Sandel, based in Vista, California, produces
specialized integrated display systems and other products for the
commercial aviation market. Kollsman has an option to buy the
remaining 80% interest in Sandel for a period of 30 months after
the initial investment. During the option period, Kollsman has the
right to representation on the Sandel board of directors, as well
as several specific minority rights. In addition, Kollsman and
Sandel have formed an alliance to cooperate on product development
and marketing. Elbit Systems is currently assessing the impact of
this acquisition on its consolidated financial statements for the
second quarter of 2006. It is expected that some of Kollsman's new
products, like the General Aviation Vision System (GAViS(TM)), the
micro-vision head-up display (micro-ViS HUD(TM)) and the Enhanced
Synthetic Vision System (ESViS(TM)), will be integrated with the
Sandel Display for the General Aviation Market. Joseph Ackerman,
president of Elbit Systems Ltd., said: "Consistent with our
strategic plan, we continue to strengthen our position in the
commercial aviation market. The commercial aviation product line,
including the current investment in Sandel, adds to our portfolio
balance and provides us with the opportunity to apply our
technological capabilities into a growing market that is focused on
safety and operational enhancements." Randy Moore, executive vice
president and general manager of Kollsman, said: "There is a
growing market worldwide for aviation safety. The industry's demand
for a broad-based technology that includes imaging systems, sensors
and displays like the Vision-Based Cockpit presents us with the
potential for continued growth and the ability to reach a wider
customer base. We see tremendous synergies between the technologies
provided by the Elbit Group and the strong position held by Sandel
in the commercial aviation market." Gerry Block, president of
Sandel, confirmed that Sandel and Kollsman are cooperating on a
project for commercial aircraft displays. Mr. Block stated: "We
believe that the synergy between the two companies and their
complementary product lines will result in a greater market share
and an advanced product portfolio to offer our customers. We are
pleased that a company which is considered a technological leader
has recognized the value of investing in Sandel, and we are certain
that the investment and the cooperation going forward will be
valuable to both companies." About Sandel Sandel Avionics, Inc.,
located in Vista, California. Sandel is a privately owned company
specializing in compact integrated display systems for general
aviation, business aviation, air transport and regional aircraft.
Additional information about Sandel is available at
http://www.sandelavionics.com/. About Kollsman Kollsman, Inc., an
Elbit Systems of America Company, headquartered in Merrimack, New
Hampshire, is a leading supplier of avionic equipment,
electro-optic systems and subsystems, vision based solutions and
surveillance systems to the commercial aviation, defense and
homeland security markets. 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 Elbit
Systems Group, which includes the company and its subsidiaries,
operates in the areas of aerospace, land and naval systems,
command, control, communications, computers, intelligence,
surveillance and reconnaissance ("C4ISR"), advanced electro-optic
and space technologies, EW suites, airborne warning systems, ELINT
systems, data links and military communications systems and
equipment. The Group also focuses on the upgrading of existing
military platforms and developing new technologies for defense and
homeland security applications. Contacts Company contact IR
Contacts Ilan Pacholder, Corporate Secretary Ehud Helft/Kenny Green
and VP Finance & Capital Markets Elbit Systems Ltd. GK
International Tel: +972-4-831-6632 Tel: +1-866-704-6710 Fax:
+972-4-831-6659 Fax: +972-3-607-4711 Statements in this press
release which are not historical data are forward-looking
statements which involve known and unknown risks, uncertainties or
other factors not under The Company's control, which may cause
actual results, performance or achievements of The Company to be
materially different from the results, performance or other
expectations implied by these forward-looking statements. These
factors include, but are not limited to, those detailed in The
Company's periodic filings with the Securities and Exchange
Commission. DATASOURCE: Elbit Systems Ltd CONTACT: Company contact,
Ilan Pacholder, Corporate Secretary and VP Finance & Capital
Markets, Elbit Systems Ltd., Tel: +972-4-831-6632, Fax:
+972-4-831-6659, ; IR Contacts, Ehud Helft/Kenny Green, GK
International, Tel: +1-866-704-6710, Fax: +972-3-607-4711, ,
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