Elbit Systems: Belgium contract worth $58m

The company was originally selected to provide the Belgian government with unmanned turrets in February 2006.

Elbit Systems (Nasdaq: ESLT; TASE: ESLT) has signed a contract to supply the Belgian government with unmanned turrets and electro-optic systems for the Belgian Armored Infantry Vehicle Program. The contract is worth $58 million with deliveries scheduled to take place from 2007 through 2012.

Elbit Systems was originally selected to provide the systems back in February 2006, and it has now signed a contract with the Belgium government. Elbit Systems won the contract because of its collaboration with Swiss company Mowag of the General Dynamics European Land Combat Systems Group. Mowag was selected by the Belgian government to be the prime contractor for the supply of the Piranha III vehicles for the program. The program currently consists of 138 vehicles out of a total of 242.

Elbit Systems president and CEO Joseph Ackerman said, “We are proud to be selected to take part in this important project for the Belgian Armed Forces. The selection of our systems constitutes a breakthrough in an emerging international market emanating from a shift in the modern battlefield.”

Recently, Koor Industries Ltd. (NYSE: KOR; TASE: KOR) sold its holdings in Elbit Systems in two stages. The first of these was at the end of November to Elbit Systems chairman Micky Federmann, who paid $70 million for 5.5% of Elbit Systems. The deal was made at a company value of NIS 5.48 billion (based on the exchange rate on the day of the deal), and Elbit Systems currently has a market cap of NIS 6 billion. Federmann has therefore made a profit on paper of NIS 28.6 million. In December, Koor sold the rest of its holdings to investment institutions for NIS 112.4 million.

Published by Globes [online], Israel business news - www.globes.co.il - on January 8, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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