Elbit Limited Announces Closing of Sale of Elbit Vision Systems Shares to Nir Alon and the Closing of the Investment in Cell Data

Apr 11, 2001, 01:00 ET from Elbit Limited

    SHEFAYIM, Israel, April 11 /PRNewswire/ -- Elbit Ltd. (Nasdaq:   ELBTF) (the
 "Company") further to its announcement of February 8, 2001, announced that the
 closing of the sale of shares of its subsidiary Elbit Vision Systems Ltd.
 (OTC Bulletin Board:   EVSN.OB) ("EVS") to Nir Alon ("Alon"), the CEO of Altro
 Warenhandels GmbH, the closing of Alon's investment in EVS and the closing of
 the investment of the Company in Cell Data Ltd. ("Cell Data") took place on
 March 29, 2001.
     Alon paid the Company $2 million and invested in EVS $1.5 million for the
 total of approximately 34 percent of EVS' issued and outstanding share
 capital. As a result, Elbit Ltd. will hold approximately 26 percent of EVS'
 issued and outstanding share capital. In the event EVS achieves certain
 commercial milestones, Alon will be invest an additional $1.5 million and will
 purchase an additional 1.5 million shares from the Company no later than
 March 15, 2002 whereby the Company's shareholdings will be reduced to 10
 percent of EVS' issued and outstanding share capital.
     As part of the transactions at the Closing, the Company invested
 $3 million in Cell Data (at a pre-money valuation of $16.5 million) for
 approximately 14.3 percent of Cell Data's issued and outstanding share
 capital. Upon the achievement by Cell Data of certain commercial milestones,
 the Company will invest a further $1.5 million, increasing its shareholdings
 to approximately 21.4 percent.
     The closing took place pursuant to the terms of definitive agreements
 among the parties as described in the announcement of February 8, 2001.
     Further details governing the agreements for the sale of EVS shares by the
 Company to Alon, for the investment of Alon in EVS and for the further
 investment of the Company in Cell Data are described in the announcement of
 February 8, 2001.
 
     About Cell Data Limited
     Based on Cell Data's experience in developing, marketing and selling
 N-AMPS modems, Cell Data has developed a PCMCIA modem card enabling Internet
 connection from laptop computers over CDMA networks. The card is easily
 installed in all laptop computers and is expected soon to be capable of
 installation in PDA's. Data can be communicated via the modem card at a rate
 of 64 Kb per second, over four times faster than offered by cellular networks.
 
     About Elbit Limited
     Elbit develops value-added services for tomorrow's e-business market.
 Company growth is based on strategic investments, mergers and acquisitions.
 Elbit develops e-business solutions by incubating technology start-ups,
 providing them with comprehensive management and strategic marketing
 capabilities. The following are several of its key investments: Contop
 specializes in wireless remote monitoring and control applications based on
 its proprietary messaging technology. Cellenium develops, markets and operates
 m-commerce patent-pending technologies and solutions, enabling all cellular
 subscribers to securely use their existing handsets for everyday payments.
 Dealigence is developing patent-pending technology for corporate commerce
 sites and electronic marketplaces that will allow traders to better match and
 negotiate their transactions by taking into account a large number of
 parameters and by preference matching. ICC provides outsourced procurement
 management and logistics services over Internet and Intranet communications
 networks, based on a unique system developed and integrated by ICC.
 starkeyNET is developing a complete solution to enable a person to operate
 computerized software applications in the new e-business era using natural
 language, personal customized assistants personified in real-time 3D animated
 characters and dialogue generating software. Textology utilizes technology
 that will enable organizations to manage diverse unstructured information.
 Its products will provide an integrated platform for automatic text
 categorization, natural language search and data retrieval and high-quality
 personalization. In addition, Elbit has a shareholding (12.3%) in Partner, the
 first cellular operator in Israel using GSM technology.
 
     Forward-looking statements in this release with respect to the Company's
 business, financial condition and results of operations are subject to risks
 and uncertainties that could cause actual results to differ materially from
 those contemplated in such forward-looking statements, including, but not
 limited to, product demand, pricing, market acceptance, changing economic
 conditions, risks in product and technology development, the effect of the
 company's accounting policies as well as certain other risk factors which are
 detailed from time to time in the Company's SEC filing.
 
 

SOURCE Elbit Limited
    SHEFAYIM, Israel, April 11 /PRNewswire/ -- Elbit Ltd. (Nasdaq:   ELBTF) (the
 "Company") further to its announcement of February 8, 2001, announced that the
 closing of the sale of shares of its subsidiary Elbit Vision Systems Ltd.
 (OTC Bulletin Board:   EVSN.OB) ("EVS") to Nir Alon ("Alon"), the CEO of Altro
 Warenhandels GmbH, the closing of Alon's investment in EVS and the closing of
 the investment of the Company in Cell Data Ltd. ("Cell Data") took place on
 March 29, 2001.
     Alon paid the Company $2 million and invested in EVS $1.5 million for the
 total of approximately 34 percent of EVS' issued and outstanding share
 capital. As a result, Elbit Ltd. will hold approximately 26 percent of EVS'
 issued and outstanding share capital. In the event EVS achieves certain
 commercial milestones, Alon will be invest an additional $1.5 million and will
 purchase an additional 1.5 million shares from the Company no later than
 March 15, 2002 whereby the Company's shareholdings will be reduced to 10
 percent of EVS' issued and outstanding share capital.
     As part of the transactions at the Closing, the Company invested
 $3 million in Cell Data (at a pre-money valuation of $16.5 million) for
 approximately 14.3 percent of Cell Data's issued and outstanding share
 capital. Upon the achievement by Cell Data of certain commercial milestones,
 the Company will invest a further $1.5 million, increasing its shareholdings
 to approximately 21.4 percent.
     The closing took place pursuant to the terms of definitive agreements
 among the parties as described in the announcement of February 8, 2001.
     Further details governing the agreements for the sale of EVS shares by the
 Company to Alon, for the investment of Alon in EVS and for the further
 investment of the Company in Cell Data are described in the announcement of
 February 8, 2001.
 
     About Cell Data Limited
     Based on Cell Data's experience in developing, marketing and selling
 N-AMPS modems, Cell Data has developed a PCMCIA modem card enabling Internet
 connection from laptop computers over CDMA networks. The card is easily
 installed in all laptop computers and is expected soon to be capable of
 installation in PDA's. Data can be communicated via the modem card at a rate
 of 64 Kb per second, over four times faster than offered by cellular networks.
 
     About Elbit Limited
     Elbit develops value-added services for tomorrow's e-business market.
 Company growth is based on strategic investments, mergers and acquisitions.
 Elbit develops e-business solutions by incubating technology start-ups,
 providing them with comprehensive management and strategic marketing
 capabilities. The following are several of its key investments: Contop
 specializes in wireless remote monitoring and control applications based on
 its proprietary messaging technology. Cellenium develops, markets and operates
 m-commerce patent-pending technologies and solutions, enabling all cellular
 subscribers to securely use their existing handsets for everyday payments.
 Dealigence is developing patent-pending technology for corporate commerce
 sites and electronic marketplaces that will allow traders to better match and
 negotiate their transactions by taking into account a large number of
 parameters and by preference matching. ICC provides outsourced procurement
 management and logistics services over Internet and Intranet communications
 networks, based on a unique system developed and integrated by ICC.
 starkeyNET is developing a complete solution to enable a person to operate
 computerized software applications in the new e-business era using natural
 language, personal customized assistants personified in real-time 3D animated
 characters and dialogue generating software. Textology utilizes technology
 that will enable organizations to manage diverse unstructured information.
 Its products will provide an integrated platform for automatic text
 categorization, natural language search and data retrieval and high-quality
 personalization. In addition, Elbit has a shareholding (12.3%) in Partner, the
 first cellular operator in Israel using GSM technology.
 
     Forward-looking statements in this release with respect to the Company's
 business, financial condition and results of operations are subject to risks
 and uncertainties that could cause actual results to differ materially from
 those contemplated in such forward-looking statements, including, but not
 limited to, product demand, pricing, market acceptance, changing economic
 conditions, risks in product and technology development, the effect of the
 company's accounting policies as well as certain other risk factors which are
 detailed from time to time in the Company's SEC filing.
 
 SOURCE  Elbit Limited