Elbit Systems to equip Australia with additional Skylark® I UAVs

estimated value of several million dollars.

Press Release

Skylark 1

Haifa, Israel, 3 August, 2008 - Elbit Systems Ltd. (NASDAQ: ESLT) announced today that it was awarded yet another contract to supply the Australian Army with more Skylark® I UAV systems for an estimated value of several million dollars. This is the Australian Department of Defence's third Skylark® order, following the initial order for the Australian Army in 2005.

Haim Kellerman, Executive Vice President and General Manager of Elbit Systems UAS Division said, "Australia's decision to equip its Army with an additional set of Skylark® I UAV systems underscores recognition of the UAV systems' capabilities and added value to soldiers in active war zones."

The Skylark® I, advanced mini-UAV system, is a unique man-pack configuration designed for day and night observation and data collection “beyond the hill” up to distances of 10-15 km. The mini-UAV system is equipped with an exceptionally quiet electric motor, totally autonomous flight and outstanding observation capabilities allowing for easy operation and orientation. The system can be launched by soldiers after a brief training period. The Skylark® I system enhances ground forces’ tactical performance in various mission scenarios.

Skylark I

Skylark® I UAV systems are in operational use in several leading armies worldwide, such as the Israeli Defense Forces as well as coalition armies who successfully operate the UAV in various tactical arenas, including Afghanistan and Iraq.

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