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IAI recently delivered its 100th large-cabin, mid-range Gulfstream G200 business-jet aircraft (formerly named: “Galaxy”) to Gulfstream Aerospace Corporation, in a roll-out ceremony that took place at IAI's facilities in Israel. The “green” aircraft, which received its Certifi-cate of Airworthiness from the Federal Aviation Administration (FAA), is scheduled to be deliv-ered to its owner, fractional aircraft ownership company NetJets, in the fourth quarter of 2004 – nearly five years after the first G200 was de-livered to its first owner. The first true mid-size business jet to enter the marketplace, the first G200, rolled out in 1997. After a year of flight testing, the aircraft received its FAA Type Certificate in December 1998. Following the May 2001 purchase of Galaxy Aerospace by General Dynamics, Gulf-stream’s parent company, the aircraft, along with its sister-ship, the high-speed Astra, also made by IAI, officially became part of the Gulfstream fleet of business jets. Subsequently, the aircraft were branded as the G100 and G200. Along with the acquisition of the two aircraft models, Gulfstream announced that NetJets had placed

IAI Delivers 100th G200 Business-Jet to Gulfstream

50 firm orders for the G200 with an option for 50 more. With its uniquely low ramp profile and large cabin environment, the aircraft has captured the attention of many in the business aviation indus-try. Today, G200s are in service throughout the

Standing on the 100th G200 ramp in the ceremony at IAI's facilities (left to right): Joseph Lombardo – Gulfstream’s COO, Moshe Keret – IAI's President & CEO, and Gadi Cohen – IAI's VP and General Manager of the Commercial Aircraft Group.

At the ceremony (left to right): Joseph Lombardo – Gulfstream’s COO, Dr. Dan Nale – Gulfstream’s VP for G100/G150/G200 Programs, Gadi Cohen – IAI's VP and General Manager of the Commercial Aircraft Group, and Zvi Genisher – General Manager Business Jets Programs at IAI.

I s r ae l A i rc ra f t Indus t r ies L td .2

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IAI and MBDA, Europe’s leading guided missile systems company, recently signed a Memorandum of Understanding (MoU) to explore technological cooperation in the area of missile defense. Under the MoU, MBDA and IAI will evaluate mutually reinforcing technolo-gies and experience in order to support future missile system concepts.The agreement was signed by Moshe Keret, President & CEO of IAI, and Marwan Lahoud, CEO of MBDA. Under the MoU, both companies have undertaken to examine their respective capabilities and expertise in the areas of extended air defense systems to see how best to evolve active defense systems to counter future threats.

IAI and MBDA Sign Missile Defense Accord

world - in Europe, Asia and both North

and South America. Since 2001, Gulfstream has

delivered 67 outfitted G200s. By the end of the second quarter of this year,

the in-service G200 fleet had flown a total of 70,522 flight hours and completed 43,496 take-offs and landings.The G200 offers seating configurations that can accommodate up to 10 passengers. Its outstand-ing performance characteristics include excel-lent climb, high-cruising altitude, high-speed, long-range and short-landing capabilities. Powered by two Pratt & Whitney PW 306A engines, the G200 can reach speeds up to Mach 0.85, altitudes up to 45,000 feet and a range of 3,400 nautical miles. With low ambient noise levels, 100 percent fresh air and natural light from generous windows, the cabin provides a comfortable workspace for busy travelers. G200 aircraft are manufactured at IAI and flown to Dallas, Texas for completion.

“IAI and MBDA have a very close relationship and the two companies have complementary technologies and experience. We are looking forward to strengthening our partnership fur-ther to support future missile system concepts”, Moshe Keret stated.“Existing systems are well adapted to counter current and foreseen threats, but the future will certainly see a new generation of weapons with even more advanced capabilities. It is, therefore, imperative that we start thinking now about the technologies that will be needed to enable us to combat these threats. IAI and MBDA are united in this view and in the belief that together they can develop the innovations which will result in effective solutions”, Marwan Lahoud said.



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G200


Menashe Broder, CEO of ImageSat, explains the ad-vantages of employing such a satellite for information gath-ering purposes, in addition to other gathering means, such as UAVs, manned aircraft, balloons, etc.: “When moni-toring areas of interest, it is important to remain unde-tected. Satellite imaging is a legal, noninvasive means of obtaining valuable informa-tion. Your subject doesn’t know when the satellite is passing over a site and what it is imaging.”

ImageSat International N.V. owns and operates the IAI-developed and produced EROS A (Earth Resources Observation Satellite) high-resolution satellite that was launched into orbit on December 5th , 2000

ImageSat International N.V. owns and operates the

ImageSat’s EROS Commercial Observation Satellites

Israel Aircraft Industries began developing satellites more than 20 years ago, with a decision that was most preten-tious at the time – to develop a high-resolution satellite for imaging purposes. The OFEQ satellites would address the State of Israel’s national needs and relieve the country

of its dependence on foreign satellites. ImageSat was established in 1997 to commercialize IAI’s expertise in imaging satellites and the purchase of EROS A resulted in the second commercial, high-resolution satellite in the world. Imag-eSat’s business model ena-bles its customers - primarily governments and international agencies - full control over the satellite camera and exclusive imagery ownership within a defined region. In practical terms, does this

Menashe Broder

Image of Washington, D.C., acquired by the EROS A satellite



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mean some type of satellite “time sharing”?Broder: “Exactly. Our Satel-lite Operating Partner (SOP) program is much like time-sharing in a condominium. Our customers purchase the exclusive right to use the EROS satellite camera over a specific geographic footprint. When the satellite reaches the defined footprint, only that customer can task the satel-lite camera and download the imagery taken - they have the ‘keys to the condo’, until they have to return them, when the satellite leaves their footprint. ImageSat’s program enables a country to ‘own’ a regional, high-resolution satellite im-aging capability. It puts our customers in control of this very important information-gathering resource.” How do you know when customers want you to im-age the footprint and send them the product?Broder: “We do not know. The customer decides and operates the satellite’s imaging equip-ment independently.”How is this done?Broder: “The customer purchases or upgrades their own ground control sta-tion, to enable them to task the satellite camera and to download the images in real-time. They also process and interpret their own imagery, so the whole effort is done in-house. ImageSat just makes

the service available, thereby sparing the customer the risk, cost and time involved in developing a domestic space imaging program.”And what about areas not purchased by SOP custom-ers? Is it possible to purchase images of those areas? Broder: “ImageSat offers the Priority Acquisition Service, which enables the purchase of a package of images covering areas that are not included in footprints already exclusively purchased by SOP customers.” The success of the EROS A satellite and demand for its services will soon lead to the deployment of a second satel-lite, EROS B, which is also designed and manufactured by IAI’s MBT Space Division. Broder: “A single satellite can only image an area on the globe as it passes and

imagery cannot be produced at night or through cloud cover. Therefore, in order to address market demand for faster revisit of EROS satel-lites - which is a vital factor in information gathering - ImageSat has purchased from IAI the EROS B satel-lite, which is scheduled for launch during the first quarter of 2006."Similar in appearance to EROS A, the new satellite will have superior capabili-ties, including a larger camera with higher resolution; a larger on-board recorder; and a faster data communication link. The expected lifespan of EROS B is ten years.Are there any other develop-ments in the pipeline?Broder: “IAI is working on the development of EROS C, which we anticipate will be launched in 2009.”

Satellite EROS A EROS B EROS C

Weight 250 kg 300 kg 360 kgExpected Lifespan 2000-2010 2006-2016 2009-2019Camera Panchromatic Panchromatic Panchromatic / MultispectralStandard Resolution 1.9 m 0.7 m 0.7 m / 2.8 mSwath 14 km 7 km 11 km

The EROS Satellite ConstellationSun-Synchronous at ~500 km

The EROS A satellite took this image of the “Sao Paulo” Aircraft Carrier docked at port in Rio de Janeiro, Brazil

For Marketing information, please contact: Noam Zafrir, VP Marketing & Sales, ImageSat Int’[email protected], www.imagesatintl.com



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IMAGESAT


mailto:[email protected]

http://www.imagesatintl.com

Arrow-2 Weapon System Undergoes Tests in the U.S.

How long have you been prepar-ing for the Arrow Weapon System tests in the United States?Levi: “Preparations extended over more than two years split into three main stages: The first stage dealt with the logistics, which included shipping the system and its ancil-lary equipment from Israel to the test site. The second stage was the integration and assimilation of the system at the test site. The third stage was the operation of a flight test. Israeli and American engineering and operational teams worked side by side, with high-level cooperation between the two government’s officials and the working level teams.”What were the objectives of the first test?Levi: “There were three central objectives all of which were met: To prove the system’s intercep-

Tests Conducted in Full Cooperation with U.S. Missile Defense Agency

tion capabilities in a real situation against a real target; to test system hardware split-deployment in an operational scenario and to expand the knowledge base for the Arrow System Improvement Program (ASIP).”You say you wanted to test the interception capabilities. How was this achieved?Levi: “The first test on July 29th was the seventh for the system and

twelfth of the interceptor. It used a Scud mis-sile presenting a real threat to the State of Israel and not a surrogate ballistic missile simulating a threat as used in previous tests.”Can you describe what happened?Levi: “The target was launched and the Arrow Weapon System entered operational working mode. The Fire Control Radar (FCR) acquired

Boaz Levi

July 29th test scenario

IAI’s Arrow Weapon System, the world’s only operational anti-ballistic missile system, underwent tests simulating real battlefield conditions on July 29th and August 26th 2004 at the U.S. Naval facility at Point Mugu, California, as a joint program with the U.S. Missile Defense Agency (MDA). Boaz Levi, Head of IAI’s Arrow Program Directorate at MLM Division discusses the tests



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the target and sent its data to the Battle Man-agement Center (BMC). A defense plan was issued and a mission command was sent to the launcher. The Arrow interceptor was launched towards the interception point, acquired the target by its own sensors and homed on it. The interceptor warhead ‘killed’ the target, followed by a body-to-body collision. All the objectives were achieved.”You also conducted a second test. Can you discuss that?Levi: “The August test, which was Research and Development (R&D) in nature, was the first against a short-range, air-launched, separating-target missile. It was intended to test the Arrow’s ability against missiles with a range longer than can be tested in Israel. The FCR acquired the target and the BMC discriminated the re-entry vehicle (RV) and issued a defense plan. The Arrow interceptor was launched at exactly the right moment and performed an accurate tra-jectory until the interceptor separation, where a malfunction occurred and the mission was not completed.” “If the malfunction were to happen in a true operational state, a second interceptor would have been fired and the mission would have successfully completed. The fact that there was no direct hit does not lessen the system’s effectiveness or capability and appropriate ac-tion will be taken.”What lessons can be drawn from the second test and what can you say regarding future threats?Levi: “We have already begun analyzing the data and checking each system’s performance. Initial results were presented to the Project’s Directorates – the Israel Government and the MDA.”“The threats are constantly changing and we must meet them. The Arrow Weapon System was designed to be forward-looking and the tests give us our next set of goals.”Why use Point Mugu as a test site?Levi: “The system was tested in the United States because of the severe test range safety limitations in Israel.”How did the split-deployment work?Levi: “This was the first time that the system was deployed as in operational operating and it worked perfectly. The radar system and the

command and control system were located close to the coastline, while the interceptor launch-ing system was deployed over 100 kilometers away.” Did you give any credence to the possibility that the system might fail either test?Levi: “No interception test is simple or easy. There are a large number of complex and highly sophisticated systems involved and every one of them is critical. Even if you have performed all the tests and conducted every possible simula-tion experiment, after you launch the interceptor missile the unexpected can appear, so each test is always a new challenge.”With these results do you feel confident the Arrow can protect Israel against missile at-tack?Levi: “Yes. The Arrow system has been de-ployed operationally with the Israel Air Force since the year 2000. The tests at Point Mugu met their objectives, proved the operational capabilities of the Arrow Weapon System and raised Israel’s security threshold.”

“The threats are constantly changing and we must meet them. The Arrow Weapon System was designed to be forward-looking and the tests give us our next set of goals”

“This was the first time that the system was deployed as in operational operating and it worked perfectly. The radar system and the command and control system were located close to the coastline, while the interceptor launching system was deployed over 100 kilometers away”



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ARROW


Estimated sales for 2005 are $30 million

Empire Aero center Receives Boeing 747 Heavy maintenance contractEmpire Aero Center (EAC) has received a contract from World Star Aviation, Inc., who manages Trition Aviation Services, to perform a “C” check level maintenance contract on a Boeing 747 aircraft. The aircraft will undergo a series of inspections, heavy maintenance and engine changes. The aircraft is one of 58 passenger and freighter aircraft leased to airlines around the world by World Star Aviation, Inc. who buys, sells and leases commercial aircraft to the international avia-tion industry. “We are confident in EAC’s ability to accomplish heavy maintenance on Boeing 747 aircraft and hope to bring many more aircraft through their facility in New York,” said Richard Zimmerman, Director of Technical Services for World Star Aviation, Inc. The EAC facility can house two Boeing 747-400 aircraft simultaneously and EAC is currently negotiating with several other Boeing 747 customers to secure a nonstop flow of aircraft into the facility.

Empire Aero Center (EAC), a subsidiary of Israel Aircraft Industries International (IAII), formally dedicated its new aircraft maintenance, repair and overhaul (MRO) center located in the Griffiss Business and Technology Park in Rome, New York. Senator Hillary Clinton and federal, state and local government officials, as well as Moshe Keret, President & CEO of IAI, attended the ceremony.Senator Hillary Clinton spoke at the ceremony noting the advanced facilities are appropriate for the type of work EAC engages in. “This effort was done by all of us, and we are com-mitted to the success of the place. I am proud of the partnership with Israeli companies,” said Senator Clinton.“The success of MRO businesses is based on three elements: quality of work, competitive prices and the skill of the work force. These elements are abundant at Empire Aero Center,” said IAI’s CEO & President Moshe Keret. He also expressed appreciation to the government officials that helped welcome EAC to the area and assisted in upgrading the facility.“Combining new state-of the-art equipment and the infrastructure left by the military have posi-tioned Empire Aero Center well for the future,”

Senator Hillary Clinton (left) shakes hands with Moshe Keret, IAI’s president and CEO

Estimated sales for 2005 are $30 million

Empire Aero Center, a Subsidiary of Israel Aircraft Industries International Formally Dedicates its Facilities

stated EAC President Joseph Reinherz. “The facility has undergone one of the most complete upgrades and refurbishments ever conducted in the MRO industry,” he added.Empire Aero Center is an advanced MRO center, with over 400,000 square feet of hangar space. The facility, once used by the U.S. Air Force’s Strategic Air Command, was converted to com-mercial use with the assistance of the State of New York, in a financial package in the sum of approximately $25 million. EAC has estimated sales in fiscal year 2005 of $30 million.



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EMPIREAERO CENTER


The real test of an aircraft manu-facturer lies in the after-market sup-port it offers. Even if an aircraft of-fers the best possible performance at a competitive price, acquisition is not justified if maintenance costs are unreasonable and technical sup-port and spare parts are unavailable. IAI has met that test with the Arava aircraft support program.The Arava was one of the first air-craft produced by IAI and made its inaugural flight in 1969. Even though the aircraft is no longer manufactured, more than half of the 100 Arava planes produced remain in operation. This is a testament to the support IAI offers its customers around the world.“A decision was made to provide Arava op-erators with support well beyond contractual obligations and to respond to problems on and off-site within hours”, says Shmuel Zisman, Manager of the IAI Arava Customer Service Center. “This includes technical training for pilots, technical and engineering supervision, supply of spare parts, revisions, conversions and avionic upgrades.”Shmuel Zisman explains: “As a service pro-vider, you must decide whether to be reactive or pro-active in maintaining your products. We offer our customers a variety of solutions. For example, when an Arava plane is involved in an incident, we check the condition of the plane, make repair recommendations, handle all in-surance issues and propose financial solutions associated with the repairs.”Another important aspect of the work car-ried out by the Customer Service Center is aircraft upgrades. “The Arava’s structure makes it very durable in all types of weather and ground conditions. Major advances in the aeronautical field allow the aircraft to real-ize its full potential,” says Shmuel Zisman.

The Arava Aircraft Continues to FlyMaintenance and Service Make All the Difference

“Many customers have chosen to upgrade their aircraft using one of our tailored packages, such as installation of an auto pilot system, a satellite navigation system, advanced avionics and other additions.”With the high level of service IAI anticipates the Arava to be in the air for many years to come.

ARAVA Twin Turboprop STOL Transport Aircraft

Principal Features Ability to operate from short, rough, semi-

prepared air strips. Excellent STOL capability – take-off and

landing runs less than 300m. Wide body gives airline-type passenger

comfort, as well as large volume for cargo carrying.

Rugged construction Swing-aft cargo door, enables easy loading of

bulky cargo. Access to full cross-section of the aircraft without restriction of door size.

Specifications: Two Pratt & Whitney PTGA-36 engines,

Turbo-props with maximum rating 783 eshp (750 shp)

Max take-off and landing weight: 15,000 lb / 6804 kg

Empty weight: 8600 lb / 3896 kg Fuel capacity: 404 US gal / 1529 liters Design speeds (cas):

V (Max cruise) – 170 kts / 315 kphV (Max control) - 68 kts / 126 kph.

Shmuel Zisman



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ARAVA


Jacob Nuss Appointed Corporate VP for Internal Audit

Jacob Nuss has been appointed IAI’s Corporate Vice President for Internal Audit. Jacob Nuss replaces David Tsory who has retired. Nuss’ previous position was Deputy Corpo-rate VP for Internal Audit. Having joined IAI in 1975, he has served in various positions, including Director of Finance and Deputy General Manager of the Electronics Group. He has also served on the Board of Directors at MAGAL Security Systems Ltd., a leading manufacturer of outdoor perimeter protec-tion, and at Spacecom Satellite Communica-tions Ltd., the marketer and service provider of the AMOS 1 and AMOS 2 communication satellites.Nuss holds a B.A in Business Manage-ment, an MBA, and a certificate in Internal Auditing.

Ronen Shapira Appointed Chief Test Pilot

Ronen Shapira has been appointed IAI’s Chief Test Pilot managing the Air Operations Direc-torate. He succeeds Hagai Koren, who recently retired.Ronen Shapira, 49, is a fighter pilot (Res.) with the Israel Air Force (IAF) having joined IAI in 1982 as a test pilot. Shapira has logged more than 7,000 flight hours, in over fifty dif-ferent makes of aircraft. He was the first IAI test pilot to fly a Russian MIG-21 fighter jet with a western avionics package upgrade and was part of the test team that flew Israel’s Lavi Fighter jet.Ronen Shapira is a graduate of the National Test Pilot School (NTPS) at Mojave, California and holds a B.Sc. in Air Transportation Management from New Haven University, Connecticut in the U.S. He is married with three children.

New Appointments in IAI

Korea’s LGI delivered a new Russian Kamov-orea’s LGI delivered a new Russian Kamov-32 (KA-32) helicopter, equipped with IAI’s Lahav Division avionics package, to the Repub-lic Of Korea Air Force (ROKAF) in a ceremony at Cheongju, Korea.The helicopter is the first in a series of seven new KA-32 helicopters procured by ROKAF via LGI. The helicopter designed by the Russian Company Kamov, manufactured by the Russian helicopter manufacturing company KumAPE, and transferred to LGI’s facility for customiza-tion and integration of the IAI’s Lahav Division avionics package. The following six helicopters will be delivered to ROKAF by the first half of year 2005. The helicopter will join ROKAF’s

Korea’s LGI delivered a new Russian Kamov-orea’s LGI delivered a new Russian Kamov-

First KA-32 Helicopter, Equipped With IAI’s Avionics Package, Delivered to Republic of Korea

other Search and Rescue helicopters.The KA-32 combines proven platform char-acteristics, along with an innovative avionics system, which includes accurate navigation systems, weather and ground survey radar, and a moving digital map. A central computer and operational software integrate all systems, which provide the helicopter with advanced flight and navigation capabilities. The project is a successful cooperation between the Korean prime contractor, LGI, the Russian helicopter manufacturer, KumAPE, and IAI/Lahav, sup-plier of the avionics systems. More than 40 KA-32 helicopters are in service with the Korean Forest Aviation and Maritime Police units.



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KA-32


IAI’s Malat Division in co-operation with Condor UAV B.V., successfully flew the Bird-Eye 500 mini UAV in the presence of high-ranking Amsterdam Police officials. The test demonstrated all per-formance requirements and was the first mini unmanned aerial vehicle (UAV) flight in Amsterdam for civilian purposes.“We are glad to have con-ducted this experiment pro-fessionally and safely. We are very interested in this new technology and see various opportunities for its use in our work”, said Amsterdam Police Chief Commissioner Jelle Kuiper.Test objectives were to demonstrate the system’s silent operation, its ability to operate in high winds and the minimal logistic footprint for operation. Test approval for urban flight was received after proving reliability and safety during demonstrations for various customers in Nuenen, southern Holland, where the Bird-Eye 500 performed missions which included traffic control, detection and tracking of vehicles and per-sons, fire detection and urban & farm site monitoring. In Amsterdam, the Bird-Eye 500 conducted rail track

monitoring, vehicle tracking, crowd control, waterway monitoring, and other mis-sions using a high-resolution color camera, and flying autonomous dedicated flight patterns (shown right).The Bird-Eye 500 is a low cost Mini UAV system, pro-viding real time day/night imagery data for law en-forcement and “over the hill” reconnaissance/surveillance. It is the latest innovative product from Malat Division, which has developed and manufactured a wide range of UAV systems including the Heron, Hunter, Searcher, Ranger & I-View.

Bird-Eye 500 Specifications Take-off Weight: 5 kg Payload Weight: 850 g Wing Span: 200 cm Overall Length: 160 cm Flight Duration: over 60

minutes Aircraft Speed: 22-60 kts Operational Altitude:

1,000 ft. Propulsion: Electric Payload: Gimballed video

camera Typical Operational Area:

10 km by 10 km Fully automated flight Hand or Bungee launch

IAI/Malat’s Bird-Eye 500 Makes Successful Historic Maiden Voyage over Amsterdam and Nuenen, Netherlands



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MINI UAV


ISRAELIsrael Aircraft In dus tries Ltd.Ben-Gurion In ter na tion al Airport 70100 ISRAELTel: (972)3-935-3343, 935-5397Fax: (972)3-935-8278, 935-5463Marketing:E-mail: [email protected]:E-mail: [email protected]

USAIsrael Aircraft In dus tries Int'l, Inc.New York, NY Tel: (1)212-620-4404Fax: (1)212-620-1799E-mail: [email protected]

Israel Aircraft In dus tries Int'l, Inc.Arlington, VATel: (1)703-875-3729Fax: (1)703-875-3740E-mail: [email protected]

LATIN AMERICA

ChileIAI - Misión en ChileTel: (56)2-232-8403Fax: (56)2-231-6157E-mail: [email protected]

ColombiaIAI - Delegación en ColombiaTel: (57)1-623-2698Fax: (57)1-623-2952E-mail: [email protected]

VenezuelaIAI - Misión en VenezuelaTel: (58)212-985-7912Fax: (58)212-985-6229E-mail: [email protected]

IAI Worldwide EUROPE

BelgiumEAT - European AdvancedTechnologies S.A.Tel: (32)2-5131455Fax: (32)2-5128279E-mail: [email protected]

FranceEAT - European AdvancedTechnologies S.A.Tel: (33)1-46404747Fax: (33)1-46404748E-mail: [email protected]

GermanyEAT - European AdvancedTechnologies S.A. Tel: (49)228-358-476Fax: (49)228-364-506E-mail: [email protected]

RussiaIsrael Aircraft Industries Ltd.CIS & BalticsTel: (7)095-258-2837Fax: (7)095-258-2838E-mail: [email protected]

ASIA

IndiaIsrael Aircraft Industries Ltd.Tel: (91)11-2-614-3103/4Fax: (91)11-2-614-0177E-mail: [email protected]

ChinaIsrael Aircraft Industries Ltd.Tel: (86)10-65056564Fax: (86)10-65058566E-mail: [email protected]

South KoreaIsrael Aircraft Industries Ltd.Tel: (82)2-757-0421Fax: (82)2-757-0431E-mail: [email protected]

ThailandIsrael Aircraft Industries Ltd.Tel: 66-2-2535148/9Fax: 66-2-2535147Email: [email protected]

AUSTRALIAIsrael Aircraft Industries Ltd.Tel: (61)2-6262-7300Fax: (61)2-6262-7301Email: [email protected]



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