Elbit Systems Ltd. announced on Monday further to its announcement on June 15 2009, that after receiving all the appropriate approvals (or authorizations), the $18 million loan that was granted to Mikal Ltd., was converted to an equity investment, and Mikal will issue approximately 19% of its shares to Elbit Systems.

As part of the agreement, Elbit Systems was granted the option to purchase the remaining shares of Mikal from the other shareholders, in the course of 2011, for a purchase price to be determined in accordance with an independent external valuation.

Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related 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 air vehicle (UAV) systems, 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 and developing new technologies for defense, homeland security and commercial aviation applications.