Court Rulings Against U.S. Subsidiary of Elbit Systems
July 02 2008 - 1:14PM
PR Newswire (US)
HAIFA, Israel, July 2 /PRNewswire-FirstCall/ -- Elbit Systems Ltd.
(NASDAQ:ESLT) (the "Company") announced that on June 30, 2008, the
court issued a series of orders relating to a trial in Memphis,
Tennessee, against several defendants, including Kollsman, Inc.
("Kollsman"), a wholly-owned U.S. subsidiary of the Company. This
is further to the Company's announcement on November 7, 2007 and
information contained in the Company's Annual Report on Form 20-F
filed on May 28, 2008 regarding a claim brought by the plaintiff
Innovative Solutions and Support, Inc. The new rulings reflect an
award to the plaintiff against Kollsman for direct and exemplary
damages, interest and costs totaling approximately $23.2 million. A
final judgment to be entered by the court will contain the actual
judgment amounts. Kollsman strongly believes that these rulings are
neither supported by the evidence on the record nor by the
applicable law and intends to evaluate the options available to
vigorously defend itself, including filing an appeal upon the entry
of a final judgment in the case. The Company anticipates that the
ruling will materially impact its second quarter 2008 results in an
net after tax amount of approximately $10 million, taking into
account reserves previously recorded. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080408/300441 ) 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.
http://www.newscom.com/cgi-bin/prnh/20080408/300441DATASOURCE:
Elbit Systems Ltd CONTACT: 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: , . Ehud Helft / Kenny Green, G.K. Investor
Relations, Tel: +1-646-201-9246, E-mail:
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