Elbit Systems Completes Second Stage of Purchase of Tadiran Communications' Shares

Elbit Systems Completes Second Stage of Purchase of Tadiran Communications' Shares

Elbit Systems Reached Holdings Of Approximately 26% in Tadiran Communications

Koor Purchased From Federmann Enterprises an Additional 2.45 % of Elbit Systems' Shares

Joseph Ackerman Appointed as Chairman of Tadiran Communications

HAIFA, Israel, August 25/PRNewswire-FirstCall/ -- Elbit Systems Ltd. (Nasdaq: ESLT), ("Elbit Systems") announced
that it completed today the second stage of the transaction to purchase
shares of Tadiran Communications Ltd. ("Tadiran Communications") from Koor
Industries Ltd. ("Koor"). The second stage of the transaction was completed
after all the conditions precedent for this stage were obtained.

According to the amended transaction agreements, which were
approved by the Company's shareholders at an Extraordinary Shareholders
Meeting held on August 23, 2005, as reported yesterday, Elbit Systems
purchased from Koor, in this stage, 5% of the share equity of Tadiran
Communications. Including the shares previously purchased by Elbit Systems in
the transaction's first stage and on the stock market, Elbit Systems now
holds approximately 26% of Tadiran Communications' shares.

Also, today, Koor completed the purchase of an additional
approximately 2.45% of Elbit Systems' share equity from the Federmann Group,
bringing Koor's total holdings in Elbit Systems to approximately 7.8%.

In conjunction with the above mentioned share purchases, Mr.
Alon Domanis was appointed as a director to Tadiran Communications' board,
and Mr. Israel (Izzy) Tapoohi was appointed as a director to Elbit Systems'
board. Mr. Domanis and Mr. Tapoohi each respectively meet the applicable
criteria for independent directors. In addition, Mr. Joseph Ackerman, Elbit
Systems' President and CEO was appointed as Chairman of Tadiran
Communications' board of directors.

Elbit Systems purchased Tadiran Communications shares from
Koor in consideration for approximately $23 million. Koor purchased from the
Federmann Group Elbit Systems' shares in consideration for approximately $25
million.

About Elbit Systems

Elbit Systems Ltd. is an international defense electronics
company engaged in a wide range of defense-related programs throughout the
world, in the areas of aerospace, land and naval systems, command, control,
communications, computers, intelligence, surveillance and reconnaissance
("C4ISR"), advanced electro-optic and space technologies. The Company focuses
on the upgrading of existing military platforms and developing new
technologies for defense and homeland security applications.

For more about Elbit Systems, please visit our website at
www.elbitsystems.com

Contacts:

Company contact IR Contacts
Ilan Pacholder, Corporate Secretary and Ehud Helft/Kenny Green
VP Finance & Capital Markets
Elbit Systems Ltd. GK International
Tel: +972-4-831-6632 Tel: +1-866-704-6710
Fax: +972-4-831-6659 Fax: +972-3-607-4711
pacholder@elbit.co.il ehud@gk-biz.com
kenny@gk-biz.com

Statements in this press release which are not historical data
are forward-looking statements which involve known and unknown risks,
uncertainties or other factors not under the company's control, which may
cause actual results, performance or achievements of the company to be
materially different from the results, performance or other expectations
implied by these forward-looking statements. These factors include, but are
not limited to, those detailed in the company's periodic filings with the
securities and exchange commission.

Source: Elbit Systems Ltd.

Company contact: Ilan Pacholder, Corporate Secretary and VP Finance & Capital Markets, Elbit Systems Ltd. Tel: +972-4-831-6632, Fax: +972-4-831-6659, pacholder@elbit.co.il IR Contacts: Ehud Helft/Kenny Green, GK International, Tel: +1-866-704-6710, Fax: +972-3-607-4711, ehud@gk-biz.com kenny@gk-biz.com

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