December 27, 2014

Elbit Systems U.S. Subsidiary Awarded $106 Million Contract for the Upgrade of C-1A Aircraft for the Brazilian Navy

Elbit Systems press release.

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("Elbit Systems") announced today that its wholly-owned U.S. subsidiary, Elbit Systems of America, LLC ("Elbit Systems of America"), received a directed subcontract from the Brazilian Navy for the upgrade of four Grumman C-1A aircraft. The prime contract is held by Marsh Aviation Company of Mesa, Arizona. The subcontract, valued at $106 million, will be performed by Elbit Systems of America over a five-year period.

The upgrade work will be performed in San Antonio, Texas, at the facilities of M7 Aerospace, an Elbit Systems of America subsidiary, under the supervision of Brazilian Navy officers who are currently deployed to San Antonio. When upgraded, the Grumman C-1A aircraft will be designated as KC-2 COD/AAR (Carrier-On-Board/ Air-to-Air Refueling) aircraft for the ultimate use on the Brazilian Navy's aircraft carrier, the NAe São Paulo.

"We are pleased to upgrade the Brazilian Navy's aircraft," commented Elbit Systems of America's President and Chief Executive Officer, Raanan Horowitz. "We built a solid reputation of meeting commitments to our customers and with the successful execution of this overhaul and modernization program we will enhance the capabilities of the Brazilian Navy."

The Grumman C-1A upgrade will include aircraft return to service, engine replacement, installation and integration of new avionics (Glass Cockpit), new communication systems and ECS systems, and air to air refueling capabilities.

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