First low rate initial production contract for F-35 Lightning Gen II helmet mounted display system program awarded to VSI for $54.1 million

First low rate initial production contract for F-35 Lightning Gen II helmet mounted display system program awarded to VSI for $54.1 million

PARIS (June 15, 2009) - Vision Systems International, LLC (VSI), a leader in advanced Helmet Mounted Display (HMD) technology, has received several new contracts with a total value of $54.1 million.

The Lockheed Martin Corporation awarded VSI a contract for the delivery of 52 F-35 Gen II Helmet Mounted Displays and 30 aircraft shipsets in support of the F-35 Lightning II Helmet Mounted Display System (HMDS) program. VSI also received contracts for production tooling and initial funding for the Pilot Fit Facility Standup at Eglin Air Force Base for the HMDS program.

Under the low rate initial production (LRIP) contract, VSI will provide HMDS hardware and production tooling for the LRIP 1, 2 and 3 acquisitions. This procurement fills initial U.S. government domestic requirements for the U.S. Air Force F-35A, U.S. Marine Corps F-35B and U.S. Navy F 35C platforms, as well as some foreign military sales production commitments. LRIP deliveries will commence this year and continue through 2012.

"With this first HMD LRIP contract for the F-35, VSI is now delivering the world's most advanced helmet display for the latest fifth generation fighter," said VSI President Drew Brugal. "The system provides the F-35 warfighter with unmatched situational awareness throughout the operational profile of the jet. By keeping 'eyes out' while viewing all critical information and video on the helmet visor, the pilot has a significant advantage in both air-to-air and air-to-ground mission execution."

The F-35 Gen II HMDS displays biocular video and symbology information on the helmet visor providing the pilot with all information necessary to execute both day and night missions under a single integrated configuration. The system enables the pilot to accurately cue onboard weapons and sensors by looking at enemy aircraft and ground targets with the helmet display. The HMD also allows the aircraft systems to alert the pilot of potential threats and hazards, significantly improving situational awareness. Advanced night imagery is provided by the helmet mounted night camera and aircraft Distributed Aperture System (DAS). The F-35 Gen II HMDS's accuracy and very low latency allows it to become the HUD replacement. The F-35 is the first front line tactical aircraft in decades that does not have a traditional HUD. The HMDS is the "virtual" HUD of the aircraft, reducing aircraft weight and improving aircraft affordability.

Formed in 1996, VSI is a joint venture between Elbit Systems of America, a subsidiary of Elbit Systems Ltd. (Nasdaq: ESLT), and Rockwell Collins (NYSE: COL). VSI was formed to develop, manufacture and support fixed wing Helmet Mounted Displays, and is today the leading supplier of fixed-wing HMDs worldwide. In addition to the F-35 Gen II HMDS low rate initial production, VSI has produced over 3,200 JHMCS helmet systems for the F-15, F-16 and F/A-18 aircraft, and is developing a Night Vision Cueing & Display (NVCD) QuadEye™ system for the U.S. Navy and U.S. Air Force; Helmet Mounted Avionics (HMA) solution for Trainers, Light Attack and Military Airlift; and is also producing the Display and Sight Helmet (DASH) Generation IV HMD under multiple contracts.

This press release contains statements (including certain projections associated with VSI providing the F-35 Gen II HMDS to Lockheed Martin) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including, but not limited to U.S. government spending and budgetary policies; potential cancellation or amendments of awards or orders by the U.S. Navy and U.S. Air Force; challenges in the design, development and production of advanced technologies; and competitive product and pricing pressures; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Rockwell Collins and Elbit Systems Ltd. Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof.

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