Elbit Systems Announces Joint Collaboration to Pursue UAS Projects in Brazil

Elbit Systems Ltd. ("Elbit Systems") announced today that its subsidiary in Brazil, AEL Sistemas S.A. ("AEL"), and Embraer Defesa e Segurança S.A. ("Embraer Defesa") have signed an agreement for the entrance of Avibras Divisão Aérea e Naval S.A. ("Avibras") as a shareholder of Harpia Sistemas S.A. ("Harpia"), envisaging joint collaboration on Unmanned Aircraft Systems ("UAS") in Brazil. According to the agreement, Avibras will hold a 9% stake of the shareholdings in Harpia, resulting in AEL owning 40% of Harpia's shares, with Embraer Defesa remaining as the major shareholder, with 51% of the shares.

The agreement signed among the three companies establishes that Avibras' Falcão UAS project will be included in Harpia's portfolio, reinforcing the national content of the partnership. Falcão is being developed by Avibras for the use of the Brazilian Armed Forces and is intended to carry out reconnaissance missions, target acquisition, support for firing direction, damages evaluation and land and sea surveillance.

"The entrance of Avibras increases the national participation in Harpia which now complies with all requirements to be a Strategic Defense Company," said Luiz Carlos Aguiar , President of Embraer Defesa and Harpia Chairman of the Board. "In addition, Harpia will be enhanced by the technical competence of Avibras."

"The synergy of technical and industrial expertise of the three Harpia partners in addition to the legacy of high technological content of the Falcão UAS project, will result in a solution of an UAS of high competitiveness in Brazil and abroad," said Sami Hassuani, President of Avibras.

"Avibras brings to Harpia the best of the know-how that has been developed autonomously in Brazil for UAS to date, making Harpia, that already benefits from the extensive capabilities of Embraer Defesa and AEL, a company with all necessary elements for the success of the development in Brazil of latest generation UAS to meet the needs of our country," said Shlomo Erez , Director General of AEL.

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