ISRAEL AIRCRAFT INDUSTRIES ACHIEVES NET PROFIT OF $50 MILLION FOR THE FIRST 9 MONTHS OF 1999

Israel Aircraft Industries'net profit for the first 9 months of 1999 reached $50.1 million, as compared to $30.8 million during the same period last year, an increase of 63 percent. Mr. Moshe Keret, President and CEO reported the results, to IAI's Board of Directors chaired by Gen. (res.) Ori Orr which approved the Company's results for the first 9 months of 1999.

Mr. Keret also reported to the Board that revenues from January through September 1999 reached $1.45 billion, as compared to $1.42 billion, during the first 9 months of 1998, an increase of 2 percent.

During the first 9 months of this year, IAI signed new contracts worth $2.02 billion, as compared to $1.17 billion during the comparable period last year, an increase of 73 percent.

In his overview to the Board, Mr. Keret said that "IAI is in a period of sustained growth and the increase in it's backlog, which will secure it's future".

Dr. Abraham Knobel, IAI's Corp. Vice President Finance, noted that the positive trend of improved operating margins for IAI's business activity is continuing and has reached a level of 5.5 percent of sales during the first 9 months of the year. He further observed that "the internal steps taken within the company to improve productivity coupled with continued strength in the main markets, have allowed IAI to reach its planned business objectives and maintain company profitability for the future".