Elbit Systems Ltd. has announced the Company's wholly-owned Israeli subsidiary, Elbit Systems Land and C4I - Tadiran Ltd. ("ESLC-T"), signed a share purchase agreement with shareholders that, to the best of ESLC-T's knowledge, hold more than 90 percent of the shares of Shiron Satellite Communications (1996) Ltd. ("Shiron").

Shiron is a privately-owned Israeli company. An offer for the purchase from Shiron's shareholders of 100 percent of Shiron's issued share capital, in accordance with the Israeli Companies Law - 1999, for the total consideration of U.S.$16 million, is underway. Shiron is engaged in the broadband communication market and their InterSKY Satcom system provides broadband satellite services to remote locations. Shiron's technology is anticipated to be synergetic to the communication technology developed and implemented in ESLC-T's military systems and products. The final consideration to be paid by ESLC-T for the purchased shares and the redemption and cancellation of all options and convertible securities of Shiron, is subject to certain adjustments, including the amount of Shiron's working capital on the date of the closing of the transaction. Completion of the transaction is subject to the fulfillment of certain conditions customary for such agreements, including the acquisition of 100 percent of the issued share capital of Shiron according to the Companies Law.