The TAA issued tradable bonds on the Tel Aviv Stock Exchange for a total amount of NIS 1 billion ($250 million)

Net profit of 130 million dollars for the aerospace industry in 2006 compared to 2 million dollars in 2005 * The company's sales for 2006 - 2.8 billion dollars

Yitzhak Nissen, CEO of the IAA: "A transformation in the company's business performance"

The TAA carried out a very successful tradable bond issue with record demand of over 87 times. The NIS 6.6.07 billion issue was completed in the public tender held on 6. The amount raised is linked to the exchange rate of the US dollar for 7-0.9 years and bears interest at a rate of 6% + LIBOR (1 months) paid every 2/XNUMX years.

The success of the offering is a recognition by the capital market of the strength of the TEA and the turnaround in its business achievements which were reflected, among other things, in the financial reports for 2006 and the reports for the first quarter of 2007.

The IAI's net profit for the fiscal year 2006 reached 130 million dollars, compared to 2 million dollars net profit in 2005.

In the first quarter of 2007, IAI recorded a pre-tax profit of $60 million compared to $24 million in the first quarter of 2006, an increase of 250%. The company's sales in 2006 amounted to 2.8 billion dollars, compared to 2.34 billion dollars in 2005, an increase of about 20%. The company's sales for the first quarter of 2007 amounted to 828 million dollars, compared to 606 million dollars in the corresponding period last year, an increase of 37%.

The aerospace industry's order backlog reached 31.12.2006 billion dollars on 7.2, compared to 6.3 billion dollars on 31.12.2005, an increase of about 16%. The backlog of orders is equivalent to about 2.5 years of sales. The turnaround in the business performance of the aerospace industry is a result of the appointment of Yitzhak Nissan as the company's CEO in early 2006. Nissan led extensive changes in the management of the company and in changing its business culture.

At the meeting of the board of directors in which the financial reports of the Aerospace Industry for 2006 were approved and after the publication of the company's prospectus to the public, the chairman of the board of directors, Yair Shamir, said: "We have come a long way in the financial life of the company. The issuance of the bonds is a significant milestone due to the fact that from today the TAA is a reporting company, which leads both to a change in perception and thinking at all levels of the company, and to the fact that we now need not only to engage in the development of advanced technology, but also to invest more time and managerial energy in the field the financial.

I have no doubt that without the tremendous improvement we achieved in the various financial indices during the year, the issuance of the bonds would not have been as successful as it was."

The CEO of the TAA, Yitzhak Nissan, said that: "The improvement in the company's business situation in the last 15 months is due to an aggressive marketing policy on the one hand, against a strict plan to cut the company's expenses in all sectors of activity, on the other hand. Also in 2007 we will improve the key parameters in the management of the aerospace industry."