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Anticipated Impact of Cessation of Program With a Foreign Customer on Elbit Systems' 2011 Fourth Quarter Net Profit

Elbit Systems Ltd. (NASDAQ and TASE: ESLT) (the "Company"), announced today, further to its announcement of December 22, 2011, the anticipated impact on the Company's 2011 fourth quarter net profit as a result of the cessation of a program with a foreign customer (the "Program"). The Company expects that as a result of the cessation of the Program the Company's 2011 fourth quarter net profit will be reduced by approximately $60 to $65 million. This amount is a result of write-off of inventories as well as other anticipated costs resulting from the cessation. The Company is currently in discussions with the Israeli Ministry of Defense regarding arrangements with respect to claims of the Company as a result of cessation of the Program.

The Company expects to announce final financial results for the fourth quarter and year end of 2011 during March 2012.

About Elbit Systems

Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of 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 ("UAS"), 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, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services.

For additional information, visit: http://www.elbitsystems.com.

This press release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current fact. Forward Looking Statements are based on management's expectations, estimates, projections and assumptions. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results, performance and trends may differ materially from these forward-looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward-looking statements speak only as of the date of this release. The Company does not undertake to update its forward-looking statements.

        
        Contacts:

        Company Contact:

        Joseph Gaspar, Executive VP & CFO
        Tel:  +972-4-8316663
        j.gaspar@elbitsystems.com
        Dalia Rosen, VP, Head of Corporate Communications
        Tel: +972-4-8316784
        dalia.rosen@elbitsystems.com
        Elbit Systems Ltd.


        IR Contact:

        Ehud Helft
        Kenny Green
        CCG Investor Relations
        Tel: +1-646-201-9246
        elbitsystems@ccgisrael.com

SOURCE Elbit Systems Ltd