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Aeronautics Ltd.

GISR BMLVS-GZ: E90031/5/6-KA/2008

List of Contents
Chapter 1 – Introduction

Chapter 2 – Summery of Solution

Chapter 3 – Technical Description

Chapter 4 – Commercial Proposal

Annex A – Compliance Table

Annex B - Aeronautics Company Profile

Annex C – References Concerning the Company's Financial and Legal Status

Annex D - References Concerning the Company's Products

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Annex A – Compliance Table

Annex B – Aeronautics Company Profile

1. General

Aeronautics Ltd., operating out of its headquarters in Yavne-Israel, specializes in Unmanned Systems,
ISTAR Systems and Integrative Defense Solutions. Aeronautics develops manufactures and provides
unmanned systems, especially Unmanned Aerial Vehicles (UAVs/UAS), Aerial and Ground Intelligence,
Surveillance and Reconnaissance Systems and Command and Control Systems.

The Group provides comprehensive security solutions based on its generic and unique real time
command and control system, UMAS™ (Unmanned Multi Application System). The UMAS™ is the heart
of the Group’s systems; it synchronizes between the various systems components and forms an
integral part in the Aeronautics’ manned and unmanned systems. Its generic features and high
reliability make it easy to integrate and interface with the system’s sensors in a “Plug & Play” manner.

Founded in 1997, Aeronautics has rapidly grown over the past few years and has established itself as a
global provider of defense and security systems. Among its customers are the US Navy and Army, the
Israeli Defense forces (IDF), the Hellenic Air Force, the Polish MOD, the Turkish Land Forces, the Dutch
MOD (NDO), the Irish Department of Defense, The Canadian MOD, The Mexican Federal Police, The
Indian MOD, the Ethiopian MOD and others.

The company is a world-leading corporation in the field of Intelligence Surveillance Targeting and
Reconnaissance (ISTAR) combining Aerial, Ground and Marine platforms into a comprehensive C4I
centers.

Aeronautics' unique in-house vertical integration capabilities facilitate the tailoring of unique ISTAR
solutions to its customers within relatively short periods within cost effectiveness features. Its open
architecture generic C² system can be easily adapted to integrate diverse sensors and to provide state
of the art solutions in minimal costs.

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Figure 1: Aeronuatics' Yavne Headquarters – Israel

The group employs currently more than 650 employees. Its senior management includes leading
figures from Israel’s defence and financial sectors.

1.1. Core Technologies

The following core technological capabilities provide Aeronautics with a high level of independence:

UAV Platforms – Aeronautics is one of the Leading Tactical UAV manufacturers worldwide, having
in its portfolio two of the most popular UAVs – Aerostar Tactical UAV and Orbiter Mini UAV. The
company's composite manufacturing line began its way in the early 1970's, manufacturing one of
Israel's first tactical UAV's – The MASTIF. These early tactical UAVs have participated in the first UAV
supported aerial strikes in aviation history, against Syrian Aerial Defense in Lebanon, in June 1982.
Acquired by Aeronautics in 2000, the veteran UAV manufacturing facility manufactures today all
Aeronautics Tactical UAVs.

Electro Optical Sensors – Aeronautics subsidiary, Controp, has a unique and independent
designing and manufacturing capabilities of electro optical Sensor systems, for aerial, ground and
maritime use. Some of Controps products have unique capabilities such as the automatic scanning and
target acquisition and continues optical zoom for FLIR.

Navigation - Aeronautics develops its navigation technology in-house and maintains superior know-
how and expertise, by employing a team of Israel's best navigation specialists. This team has
developed cutting edge technologies using sophisticated Kalman-Filter software to capture all
navigation data into GPS a jammed environment with immensely accurate results. In addition, El Cielo,
a fully owned subsidiary (see corporate structure below), is the leading global developer and
manufacturer of fiber optic gyroscopes (FOG), a critical component to large defence systems. El-Cielo
also develops and manufactures extremely accurate INS systems.

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Command and Control - Aeronautics has developed in-house a state- of- the art unmanned multi
application system (“UMAS™”) as the primary real-time control unit for its variety of UAVs as well as
other unmanned platforms. The UMAS™ has accumulated more than 80,000 flight hours with absolute
reliability. This primary control unit operates as a generic building
block and is integrated into a variety of other Aeronautics
products, such as Aeronautics’ surveillance balloon, UAVs, and
other C² applications. The UMAS™, designed as an open-
architecture real-time control unit, integrates other payloads and
sensors easily and within a short period of time. This enables
Aeronautics’ system to easily integrate virtually any sensor and
customize its systems to address virtually any customer requirements.

Communication – Aeronautics' Commtact, a fully owned subsidiary,


provides high-end communication capabilities with cutting-edge
analogical and digital communication for a variety of applications, such
as UAVs, defence and security systems, manned aircraft, and large
integrated systems. All Commtact's products and systems are
operationally proven with high reliability performance. Mobile Satellite
communication, one Commpact’s innovative systems, allows the
Company to deliver integrated solutions such as mobile sensors integrated in a system of systems
solutions.

Man Machine Interfaces - Aeronautics' software department consists of many of the Israeli Air
Force UAV’s operators with a wide experience; such experience is embedded in Aeronautics' software
providing the customer with an advanced and user friendly interface.

Controlling these core technologies enables Aeronautics to deliver integrated solutions for system-of-
systems projects. Such core technologies are the same fundamental building blocks of coastal radar
and surveillance systems, which consists of UAVs, Airborne ISR systems, and command and control
centres (which presents data fused information via-satellite communication to a National command
and control centre). Aeronautics’ vertically integrated R&D architecture provides a competitive
advantage in providing systems-of-systems solutions.

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1.2. Aeronautics' Products

Aeronautics' product portfolio is diverse, and its open architecture technology features as described
above enable to offer a wide solution based on customers needs. Below is Aeronautics product
portfolio as distinguished between aerial platforms and other defence solutions:

Aeronautics Unmanned Aerial Platforms family

Skystar 100 & 300 Balloons

These aerostats provide aerial electro optical surveillance for up to 20 km from


anchor point. They provide surveillance capabilities, accomplished by simple
equipment, which requires minimal operating skills and technical
maintenance. The aerostats are as well fit to act as a platform to other various
payloads, such as communications relay or surveillance radars.

Orbiter

A Mini UAV family that provides field commanders with a rapidly-


deployable short and medium range reconnaissance capability. The
system is easily controlled in either Waypoints Navigation or Camera
Guidance modes. The Orbiter system can be transported, assembled,
launched and operated by just two personnel after minimal training. The
entire Orbiter System fits into two backpacks (Max takeoff weight - 6.5 Kg). Assembled in 10 minutes,
Launched by a bungee, catapult or hand, it has automatic parachute recovery, 15 km range, 2.5 hour
flight endurance, day/night operational capability and very low noise signature (electric motor). The
larger members of the Orbiter family have a take-off weight of 9-15 kg, endurance of 4–7 hours, and
operational range of up to 100 km.

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Aerolight

A close range and training UAV platform. The system can be launched by
catapult and can be recovered by precision Para foil recovery system. The
IDF and additional customers operate the system. This system is
sometimes sold as part of a training package to the customer.

Service Ceiling – 10,000ft, Operational Endurance – 4 Hours, LOS Data


Link Range – 150km.

Aerostar

The company’s tactical UAV that has accumulated more than 100,000
flight hours in operational uses around the world and in different and
complex environmental conditions. Wingspan - 7.5m. Max. Payload >
50Kg. Service Ceiling – 18,000 ft. Operational Endurance 14hr.

Aeronautics ISTAR Products

Ground Intelligence, Surveillance and Reconnaissance System (GISR)

Aeronautics' Ground Intelligence, Surveillance &


Reconnaissance (GISR) System is the Company's turnkey
solution for converting a utility vehicle or truck into a highly
capable surveillance platform. GISR raises your viewpoint to a
commanding 20 ft height. The GISR enables the performance of
defense, security or civil surveillance activities using electro-
optical sensors, mounted on a telescopic elevation mechanism
installed on a 4-wheeled drive utility vehicle or truck GISR is a
flexible, modular system, and the system details given herein
may change according to the type of vehicle to be converted and
the Customer’s operational requirements. The system is already
operated under numerous customers worldwide.

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Aerial Intelligence, Surveillance and Reconnaissance System (AISR)

The company installs and integrates AISR systems onboard helicopters and fixed wing aircrafts. The
AISR is an integrated system and includes the C4I software and hardware, payload and the user’s
interface.

E/O payload on a fixed wing aircraft and on board


console

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Stronghold

Aeronautics offers a command and control interface that manages Motorola’s PSRS radar systems. The
system detects human images and pinpoints suspicious ones with a camera or other optical
equipment. The system has already been deployed in several compounds.

System Integrated Solutions

Aeronautics has great capabilities in delivering system


integrated solutions. Due to its open architecture and
modular design, Aeronautics offers tailored suite
system according to customer's requirements. Its open
architecture enables scalability and great flexibility
with integration of multi sensors.

The following illustration demonstrates the open


architecture of Aeronautics C² system which enables
large scale multi sensor integrated project:

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1.3. Corporate Structure

The following are the major Company's subsidiaries and affiliated companies:

Commtact Ltd. (Fully Owned) develops, manufactures and markets microwave


links solutions – Transmitters, Receivers and Antenna Systems in a wide
spectrum of frequency bands. Commtact’s data link systems are fully designed
for Unmanned Aerial Vehicle systems, in addition to multipurpose security
applications. Among its customers are Israel’s leading defense manufacturers.

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Z.T. SRL (“Zanzottera,” Fully Owned) develops, manufactures and


markets two stroke indirect and direct fuel injection
engines, specially designed for UAVs. These engines
have played a significant part in achieving the
outstanding reliability record of Aeronautics UAVs. The
company is located in Italy and provides UAV engines and subsystems to various customers.

El Cielo applies unique, advanced fibre-optic technologies and facilities to a


growing range of solutions for defence and industry. With over 40 patents and
world class facilities, El Cielo provides high level closed loops Fiber Optic
Gyroscopes (FOGs) at all environmental conditions; Cileo’s (FOGs) are already being delivered to
initial customers. In addition, El Cielo is engaged in custom orders for equipment aimed at fiber optic
manufacturing applications.

Aeronautics has recently established with Diamond Aircraft Industries


(“DAI”), a global enterprise involved in planning, development and
manufacturing of single and twin propeller aircrafts and jet aircrafts, a joint
subsidiary in equal shares. The joint company, Diamond Airborne Sensing (“DAS”), shall be involved in
the development of a joint Medium Altitude Long Endurance (MALE) UAV based on DAI’s DA42 aerial
platform, on joint development program of Aerial Observation Systems based on DAI platforms and
Aeronautics systems, the development of civil avionics and navigation systems and the provision of
surveillance and reconnaissance services to various customers.

In 2008 Aeronautics purchased major shares of R.T LTA systems Ltd (RT)
outstanding shares; RT develops, manufactures and markets air-balloons
(Aerostats) and balloon Ground Launching Systems (GLS); RT's balloon
ground launching system is patent pending and as far as it is known – no vendor holds a similar
solution. In addition to its GLS, RT develops a series of balloons, which addresses a mobile unit up to
brigade level needs. RT serves as a vendor or a prime subcontractor of Aeronautics and its systems are
considered as key elements in Aeronautics' Integrated solutions. According to management's

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estimation Aerostats for defence and security applications will show extensive growth rate in the near
future.

Controp Precision Systems Ltd. (partially owned) specializes in the


development and production of Electro-Optical (EO) and Precision
Motion Control Systems. Among its products Controp develops High
performance Stabilized Observation Payloads used for day and night surveillance on board: UAV's,
Helicopters, Light Aircraft, Maritime Boats and Ground Vehicles. Controp is considered a world leader
in EO systems.

1.4. Selected Projects

The company has a proven record of global UAV projects:

Israel – Israel Defense Forces

The Aerostar Tactical UAV system has been chosen by the IDF for its
routine security missions over the Israeli border. During this ongoing
operation, the system has accumulated more than 40,000 hours as the
primary tactical Intelligence, Surveillance and Reconnaissance solution
of the Israeli Defence Forces. The system has been successfully
deployed and operated from the Army’s brigade HQ and has met all of
the rigorous IDF operational requirements.

USA – U.S. Navy NAS Fallon

In cooperation with General Dynamics, Aeronautics has been awarded a contract to provide UAV
training support on a lease basis to the Naval Strike and Air Warfare Centre in Fallon, Nevada. The
company has also provided the required support personnel and mission operators for the Aerostar
TUAV. The older version of the Aerostar Tactical UAV and other platforms are in use in NAVAIR PMA
263 in the past 11 years; More information can be found at:

http://www.navair.navy.mil/pma263/mudo/mudo.html

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The Aerostar operating at the NAS Fallon Nevada base

USA – New Mexico State University

The Aerostar Tactical UAV system is deployed at Las Cruces,


New Mexico, as part of the NMSU UAV Technology Analysis
and Applications Center (TAAC). The Aerostar supports UAV
Operations, Training/Certification, and Sensor Technology
Development. One of the goals of this project as a part of
TAAC’s UAV center of excellence, is to develop technologies to
allow safe operation of UAVs in civilian airspace. please find
more information at: http://www.psl.nmsu.edu/uav/

Angola – Sonanagol (national oil company)

Aerostar TUAS Systems are operated on a daily basis in protection of offshore oilrigs. Every night two
Aerostar TUAS were operated in parallel from Kabinda beach to patrol the oil rigs for the Angolan
company.

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The Aerostar in operation in Angola

Turkish land forces (TLF)

The Aerostar TUAV system is deployed in south – eastern Turkey since February 2008 to support TLF
activity with anti – terrorism activity. Since the deployment, the Aerostar TUAS has performed over
2000 operational hours over Turkey. Aeronautics’ operators and instructors escorted this project, and
are currently handing over the control to the Turkish operators that are about to start operations on
their own.

Aeronautics at NATO work groups

Aeronautics’ representatives are supporting NATO work groups to establish UAV operations
regulations and standards. For the past 3 years Aeronautics’ is participating as an official member at
the NATO formal working groups.

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GISR Projects

Aeronautics and its subsidiary, Controp, have manufactured and delivered several dozens of GISR
systems, mounted on various types of military and law enforcement vehicles in the US Army, Russian
Federation, Canada, Switzerland, several units of the IDF, an undisclosed African state and other
customers. Moreover, more than 100 GISR systems were delivered and mounted on various fixed sites
and mobile platforms.

Maritime Intelligence, Surveillance and Reconnaissance (MISR) Projects

Aeronautics and Controp have delivered dozens of ISR systems for maritime platforms in the IDF and in
international customer naval and coast guard units. Some of these systems included a turnkey solution
of fast boats, non lethal weapon stations, armor protection suit and MISR system.

Aerostat Projects

Aeronautics Skystar aerostat system is in operational service in the IDF, the Canadian Forces in
Afghanistan, the Mexican Federal Police, the Russian Ministry of Interior and in several police
departments in the US.

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1.5. Strategic Aliances

Aeronautics has teamed along the years with some the world leading defense contractors integrating
its products into its partners' C4I environments, and implementing partners' capabilities into its
solutions. Following are selected teaming and joint-venture alliances.

Textron/AAI

A leading UAS provider in the U.S, AAI’s UAS control stations are the standard interface for the U.S.
Army. As a result, all UASs sold to the U.S. Army must integrate with these stations. In September,
2008, Aeronautics and AAI formed a joint venture to market Aeronautics’ Orbiter UAS system to the
U.S. defense market. AAI selected to partner with Aeronautics due to the compelling performance of
the Orbiter and its easy integration.

Rafael

A leading Israeli governmental defense company. Rafael and Aeronautics have partnered to develop a
joint ground control station, leveraging Rafael’s advanced interfaces and Aeronautics’ UMAS command
and control system.

QinetiQ

A leading British defense corporation. QinetiQ partnered with Aeronautics to supply UAS services
world-wide. QinetiQ provides trained manpower to operate Aeronautics’ UASs. This is of particular
value to Aeronautics in cases where Aeronautics is unable to provide support services to its
customers.

Rheinmetall

A leading global defense corporation. Rheinmetall partnered with Aeronautics to supply surveillance

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systems in Canada and in Switzerland. In these geographies Rheinmetall acts as a prime contractor
and integrates Aeronautics Aerosky, Orbiter, and Aerostar into its system-of-system solutions.

Israeli Military Industries (IMI)

A leading Israeli governmental defense company, with leading artillery capabilities. IMI partnered
with Aeronautics to supply its Orbiter as a surveillance tool to assist artillery customers’ view of the
battlefield and adjust their artillery accordingly.

Motorola

A leading defense communications systems provider. Motorola teamed with Aeronautics to supply
advanced perimeter security solutions in Israel and immediately upon the award of the Israeli Army's
contract expanded this teaming to other international destinations. Motorola combines its radars with
Aeronautics’ C4I system and software to create a multilayer sensor solution.

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Annex C – References Concerning the Company's Financial and Legal


Status
The following references apply for Aeronautics' Financial and Legal Status,
and include:

1. Certificate from the Israeli Companies Registrar

2. Certificate for Good Standing from the Companies Registrar

3. Certificate regarding Fiscal Residence and Regular Tax Payment from


the Israeli Taxes Authority

4. Certificate regarding the companies incomes in the years 2005-2008


from the companies Auditing Accounting Firm - KPMG

5. Certificate regarding the company's bank account from Bank H'apoalim

Annex D – References Concerning the Company's Products

The following references apply for Aeronautics ISR systems:

1. AAI – Orbiter Reference (regarding interoperability with AAI Single


Station)

2. Israeli MOD Reference Regarding Interoperability with Elbit-MASUA

3. Kazakhstan - IMI Reference Regarding Interoperability

4. Motorola – Stronghold Interoperability Reference

5. US Army Reference - SPIDER

6. Israel MOD reference

7. United States Navy reference

8. Georgian MOD reference

9. Ethiopian MOD reference

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10. Russia-Irkut Reference

11. US NMSU project reference

12. ANGOLA-SONANGOL Project info (In Portuguese)

13. Polish MOD reference

14. Polish MOD reference after Orbiter operations

Additional Referencing Materials:

15. Aviation Week Editorial on Israeli operational activity

16. Frost and Sullivan Awards to Aeronautics

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1. AAI – Orbiter Reference (regarding interoperability with AAI Single Station)

2. Israeli MOD Reference Regarding Interoperability with Elbit-MASUA

3. Kazakhstan – IMI Reference

4. Motorola – Stronghold & MASUA Reference

5. US Army Reference – SPIDER

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6. Israel MOD reference

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7. United States Navy reference

8. Georgian MOD Reference

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9. Ethiopian MOD Reference

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10. Russia-Irkut Reference

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11. US NMSU project reference

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12. ANGOLA-SONANGOL Project info (In Portuguese)

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13. First Polish MOD Reference

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14. Second Polish MOD Reference

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15. Aviation Week (June 16th 2003)


Article on Israeli operational activity

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16. Frost & Sullivan Awards (2003; 2009)

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