Elbit Systems to Establish New Company To Develop New Energy Source For Civilian Transportation

HAIFA, Israel, July 7, 2016 --

Elbit Systems Ltd. (NASDAQ and TASE: ESLT) ("Elbit Systems") announced today that it is establishing a new company (the "New Company"), based on its in-house developed energy technology for transportation. The New Company will develop energy solutions for civilian transportation applications.

An international strategic investor will invest 16 million euros in exchange for 20% of the New Company's shares and will grant the New Company rights in several of its energy related technologies.

The New Company headquarters will be based in Israel and the employees of Elbit Systems Land & C4I's energy business unit will be employed in the New Company.

Bezhalel (Butzi) Machlis, Elbit Systems President, said: "Elbit Systems' extensive array of technologies enables us from time to time, to develop technologies providing solutions for the commercial market." Machlis added: "I expect this New Company will grow substantially and develop more energy solutions for civilian transportation applications."

About Elbit Systems

Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial 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, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios and cyber-based systems. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems.