Last updated on April 18, 2014 at 21:21 EDT

Elbit Systems Brazilian Subsidiary, AEL and Embraer Defesa e Segurança, Sign Agreement for the Entrance of the Brazilian Company Avibras to Harpia

February 6, 2013

HAIFA, Israel, February 6, 2013 /PRNewswire/ –

The companies will jointly pursue UAS projects in Brazil

Avibras’ Falcao UAS project will be included in Harpia’s portfolio

Elbit Systems Ltd. (NASDAQ and TASE: ESLT) (“Elbit Systems”) announced today that its
subsidiary in Brazil, AEL Sistemas S.A. (“AEL”), and Embraer Defesa e Seguranca S.A.
(“Embraer Defesa”) have signed an agreement for the entrance of Avibras Divisao Aerea e
Naval S.A. (“Avibras”) as a shareholder of Harpia Sistemas S.A. (“Harpia”), envisaging
joint collaboration on Unmanned Aircraft Systems (“UAS”) in Brazil. According to the
agreement, Avibras will hold a 9% stake of the shareholdings in Harpia, resulting in AEL
owning 40% of Harpia’s shares, with Embraer Defesa remaining as the major shareholder,
with 51% of the shares.

The agreement signed among the three companies establishes that Avibras’ Falcao UAS
project will be included in Harpia’s portfolio, reinforcing the national content of the
partnership. Falcao is being developed by Avibras for the use of the Brazilian Armed
Forces and is intended to carry out reconnaissance missions, target acquisition, support
for firing direction, damages evaluation and land and sea surveillance.

“The entrance of Avibras increases the national participation in Harpia which now
complies with all requirements to be a Strategic Defense Company,” said Luiz Carlos
Aguiar, President of Embraer Defesa and Harpia Chairman of the Board. “In addition, Harpia
will be enhanced by the technical competence of Avibras.”

“The synergy of technical and industrial expertise of the three Harpia partners in
addition to the legacy of high technological content of the Falcao UAS project, will
result in a solution of an UAS of high competitiveness in Brazil and abroad,” said Sami
Hassuani, President of Avibras.

“Avibras brings to Harpia the best of the know-how that has been developed
autonomously in Brazil for UAS to date, making Harpia, that already benefits from the
extensive capabilities of Embraer Defesa and AEL, a company with all necessary elements
for the success of the development in Brazil of latest generation UAS to meet the needs of
our country,” said Shlomo Erez, Director General of AEL.

About AEL

AEL Sistemas S.A. (http://www.ael.com.br) is a Brazilian company with headquarters
in Porto Alegre. For more than two decades it has been engaged in the design, development,
manufacturing, maintenance and logistic support of military and civilian electronic
products, for applications for air, sea and land vehicles, manned and unmanned. In 2001,
AEL Sistemas became a subsidiary of Elbit Systems Ltd., the largest non-government-owned
defense company in Israel, and in 2011 Embraer Defesa and Security acquired a 25% interest
in AEL.

About Embraer Defesa

With more than 40 years of experience in the supply of platforms and superior systems
to the Armed Forces of the entire world, Embraer Defesa e Seguranca S.A has growing
presence in the global market and plays a strategic role in the Brazilian defense system.
Embraer’s Defesa portfolio includes military aircraft, last radar generation technologies,
unmanned air vehicles (UAV) and advanced information and communication systems such as the
applications of Command, Control, Communication, Intelligence, Surveillance and
Reconnaissance (C4ISR). Embraer’s aircraft and military solutions are present in more than
50 Armed Forces of 48 countries.

About Avibras

Founded in 1961, Avibras Divisao Aerea e Naval S.A is a 100% national company,
specialized in engineering, which designs, develops and manufactures products for the
military and civilian markets. Its ample defense portfolio includes artillery rocket
systems, autonomous and guided missiles, anti-aircraft systems, weapon systems for
aircraft, military armored vehicles, remotely piloted aircraft, command and control
vehicles and complex systems integration.

About Elbit Systems

Elbit Systems Ltd. is an international defense electronics company engaged in a wide
range of 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 aircraft systems (“UAS”), 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, developing new technologies for defense, homeland security and
commercial aviation applications and providing a range of support services.

For additional information, visit: http://www.elbitsystems.com.

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


        Company Contact:

        Joseph Gaspar, Executive VP & CFO
        Tel: +972-4-8316663

        Dalia Rosen, VP, Head of Corporate Communications
        Tel: +972-4-8316784
        Elbit Systems Ltd.

        IR Contact:

        Ehud Helft
        Kenny Green
        CCG Investor Relations
        Tel: 1-646-201-9246
        e-mail: elbitsystems@ccgisrael.com

SOURCE Elbit Systems Ltd

Source: PR Newswire