NETANYA, Israel, October 16 /PRNewswire-FirstCall/ -- RADA Electronic Industries Ltd. announced today that it has received a P.O. from Rafael to design and provide avionics systems. Purchase order value is $1,200,000, covers development and supply of prototype units. Production units order is expected to follow during 2007.

This contract, with Rafael, is added to other successful development and production of sophisticated avionics products contracts with one of the major defense integrators in Israel.

Commenting on the contract, Major General (Res.) Herzle Bodinger, RADA's president and CEO said, "We are proud to be contracted by Rafael, one of our strategic customers and a leading Israeli defense industry, for such advanced avionics products. This contract shows the confidence RADA gained at Rafael as a reliable avionics design and manufacture house."

About RADA

RADA Electronic Industries Ltd. is an Israel based company involved in the military and commercial aerospace industries. The Company specializes in Avionics systems (Digital Video Recorders, Ground Debriefing Stations, Stores Management Systems, Flight Data Recorders, Inertial Navigation Systems), Trainers Upgrades, Avionics systems for the UAV market, and Electro optic cameras for airplanes and armored vehicles.

Note: Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risk uncertainties and other factors include, but are not limited to, changes in general economic conditions, risks in product and technology developments, market acceptance of new products and continuing product demand, level of competition and other factors described in the Company's Annual Report on Form 20-F and other filings with the Securities and Exchange Commission.

Company Contact: Zvika Alon (V.P Business Development) Tel: +972-9-892-1111 alon_zvika@rada.com

CONTACT: Company Contact: Zvika Alon (V.P Business Development), Tel:
+972-9-892-1111, alon_zvika@rada.com

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