Elbit Systems Engaged by GM for Conceptual Design

3 August 1998

Elbit Systems Engaged by GM for the Conceptual Design of a New Electric and Hybrid Vehicle Traction System for Cars of the 21st Century

    HAIFA, Israel--Aug. 3, 1998--Elbit Systems Ltd. (NASDAQ-NM Symbol: ESLTF) announced today that General Motors , GM-UMI Technology R&D, Israel (a Joint Venture between GM and Universal Motors Israel), and Elbit Systems have launched a project for the development and evaluation of a new conceptual design for a modular traction system for electric and hybrid vehicles to be performed by Elbit Systems.
    The project will be managed by Elbit Systems and GM, with the participation of the Office of the Chief Scientist of the Israeli Ministry of Industry and Trade.
    The system's design is based on unique technologies developed at Elbit Systems and utilized in its military electric drive system. In addition the system utilizes, an innovative disk motor developed by Samot Engineering Ltd. of Nes Ziona, Israel, in which Elbit Systems has an option to acquire a controlling interest.
    Joseph Ackerman, President & CEO of Elbit Systems, said: "The collaboration with GM exemplifies Elbit Systems' policy to explore ways to utilize selective military technologies for commercial applications."
    Avraham Horowitz, Director of the GM-UMI Joint Venture, said: "The decision to work with Elbit Systems in the conceptual design of such a strategic automotive component indicates confidence in Israeli technology."
    In response to a growing concern for air quality and a demand for decreased pollution, there is a push for vehicles that use alternative fuels instead of those used by traditional internal combustion engines. This trend promoted the development of Electric and Hybrid vehicles which both require highly efficient electric powertrain systems.
    Elbit Systems Ltd. is engaged in a wide range of defense-related airborne, ground and command, control and communications ("C3") programs throughout the world. The Company focuses on upgrading of existing military platforms and developing new technologies for defense applications.
    Forward looking statements with respect to the Company's business, financial condition and results of operations, in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filings.