Elbit Systems Ltd. (Nasdaq and TASE: ESLT) and Sagem Defense Securite S.A. (Safran group) announced the signature of a MoA (Memorandum of Agreement) regarding the intended establishment, by early 2011, of an equally owned joint venture for the tactical unmanned aircraft systems (UAS) market for France and designated international markets, in which existing initiatives will continue through the JV.

The intended joint venture will be a French corporation, located in Eragny and Montluçon (France). It will be formed by the equal contributions of assets from the two parent companies.

The new company's portfolio will comprise newly developed products, as well as current and derivative products, from Sagem and Elbit Systems.

The new company will be able to offer a wide range of products for the tactical UAS market.

Concurrently, Elbit Systems is fully committed to the continued growth of U-Tacs (UAV Tactical Systems Ltd.), its joint UK company with Thales and to the successful execution of the Watchkeeper program, including the support of Thales offer to supply Watchkeeper systems to France.