Elbit receives U.S. Army ID/IQ Mortar Weapon Systems Contract

Haifa, Israel, November 23, 2016 – Elbit Systems Ltd. (NASDAQ and TASE: ESLT) ("Elbit Systems") announced today that its U.S. subsidiary, Elbit Systems of America, LLC was awarded an Indefinite Delivery/Indefinite Quantity (“ID/IQ”) contract for the production of mortar weapon systems. The contract, with a maximum value of up to approximately $103 million, will be performed over five-year period. An initial purchase order, in an amount that is not material to the company, have already been awarded.

Elbit Systems of America signed a Memorandum of Understanding (“MOU”) with the United States Army’s Watervliet Arsenal (WVA), New York, which will effectively employ WVA as a subcontractor to Elbit Systems of America on many mortar components.

“We are extremely pleased to continue our partnership with the United States Army by supplying our warfighters with the mortar weapon systems that enhance their mission effectiveness and provide the necessary precision and flexibility to address current and future threats,” commented Raanan Horowitz, president and chief executive officer of Elbit Systems of America.

The award of the mortar weapon systems solidifies Elbit Systems of America’s position as the leading provider of mortar systems for the U.S. Army.