ESLT Elbit Systems Ltd

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: IR Contact: Ehud Helft / Kenny Green G.K. Investor Relations Tel: +1-646-201-9246 E-mail: 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: , ; IR Contact: Ehud Helft / Kenny Green, G.K. Investor Relations, Tel: +1-646-201-9246, E-mail:

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