IAI unit Elta wins 2 South Korea deals

IAI will likely record $70-98 million down payments in its financial report for 2009.

Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) subsidiary Elta Systems has won two multiyear contracts worth $280 million altogether to supply radar systems to the Republic of Korea Army.

IAI's usual policy is to receive a down payment of 25-35% on contracts, suggesting that it will record $70-98 million revenue from the contracts in its consolidated financial report for 2009.

In the first contract, Elta will supply its EL/M2032 fire control radar systems for combat aircraft, for South Korea's indigenous TA/FA 50 Golden Eagle jet. The system improves the jet's air-to-air, air-to-ground, and air-to-sea combat capabilities. The system can identify and classify a range of targets at long ranges, provide high-resolution combat arena maps, and has additional applications as well. The Golden Eagle trainer and light attack strike fighter is a joint development of KAI / Lockheed Martin and Lockheed Martin Co. (NYSE: LMT). The radars will be jointly manufactured with South Korean sensors and communications equipment maker LIG Nex1 Ltd.

In the second contract, Elta will supply its advanced radar system for air defense, which is slated to become operational by the South Korean Army in 2012.

Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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