Israel Aircraft Industries (IAI), is the country's largest high-technology complex, with approximately 12,000 employees.
MBT - a division of IAI Electronics Group, is a multi-disciplinary missiles and guided weapons design and development plant, and the
national space systems house.
It produces Gabriel and Barak missile systems; systems and electro-mechanical, electronic, and optronic systems and combat aircraft. The
remotely piloted vehicles are small pilotless planes that can fly over designated targets and transmit a real time pictures of the area they
scan. Originally used for oil search topography planning, they detected the exact position of SAM-9 Syrian missile bases in Lebanon's
Bekaa Valley a decade ago. These bases were rendered inoperative by the Israel Air Force, removing a major threat to the security of
Israel.
Rafael Armament Development Authority
Elbit Systems Ltd.
A Word About the Development of Infrared Technology in Israel
IR systems are of particular interest to the military sector since they emit no signals of their own. Radar-like systems are becoming less
acceptable as a result of new developments in electronic countermeasures using IR heat seeking missiles. Among the military applications
is Rafael Armament Development Authority's use of IR technology in the Python 3, its infrared air-to-air missile, with long range
capabilities.
The development and production of IR detectors is highly advanced. The United States Department of Defense, under former President
Ronald Reagan, had a program, valued at $500 million, which aimed at developing and acquiring new IR detectors. Israel became a
valued source for the US Varo Industries, a major supplier and part of the American program
Shares of Israeli Security Firm Surge
The Magal shares as of September 22 traded at a multiple of 22 and a market capitalization of $63m.The company's stock has surged
75.4% on the Nasdaq exchange since the terrorist attacks in the US.
Magal Security Systems Ltd., mentioned in previous issues of IHTIR, develops, manufactures, markets and sells computerized security
systems. The product line includes perimeter security systems and a video motion detection system, which automatically detect and locate
intruders, x-ray screening and detection systems, including AISYS, an explosive device detection system that automatically detects,
locates and identifies explosive devices in luggage, packages and other parcels. Also included are pallets x-ray screening machine used to
screen large cargoes, and those loaded on standard pallets, and MagNet, a security management system that integrates the management,
control and display of various security systems into a single, real-time database. Magal systems are used to protect aircraft, national
borders and sensitive facilities, including military bases, power plant installations, airports, postal facilities, prisons and industrial locations,
from terrorism, theft and other security threats.
Magal Security Systems (Nasdaq:MAGS), has been hired by the Israeli Ministry of Defense (MOD) to protect its headquarters, in a deal
worth a total of $1.5 million.
Acts of terror perpetrated against the State of Israel and its citizens have a long history. The shooting down of an El-Al Israel Airlines
plane with civilian passengers, was a signal to take security seriously. El-Al, for the past 30 years thanks to its stringent, though lengthy
and sometimes unpleasant pre-flight procedures, has not suffered another act of terror in the air. The development of Israel's defense
industries has always been connected with an eye to "uncovering the unseen" threat. The expertise is built on home-grown technologies,
which are being used by Israel's Defense establishment, the US and many other countries. The Israel Export Institute, in a directory it is
about to publish, lists 90 active security companies in Israel. There may be more than that, as not all of those active in the field appear in
IEI listings.
MBT expertise covers a wide spectrum of products and services, including:
* Space and satellite systems
* Naval weapon systems
* Precision guided munitions
* Radar, laser and electro-optical seekers
Rafael is Israel's largest research and development house for weapons systems, including missiles, guided and unguided weapons,
electronic warfare systems, simulators, and thermal imaging. Airborne infrared targeting and navigation pods and the Pyramid
TV-guided, low-cost, precision glide bombs are also developed and produced by Raphael.
Elbit is a leader in Israeli defense electronics, with a staff of more than 1,700. Sales are in the order of $700 million a year; the company's
order backlog currently stands at $1.3b., mostly export orders. Since the early 1970's, Elbit has been supplying weapons-delivery and
navigation systems. The company equips all F-15s and F-16s of the Israel Air Force. Other products include: Dash, a display and sight
helmet system representing an important advance in air-combat capabilities, enabling pilots to aim weapons by simply looking at the
target. Opher, terminal-guidance kits that transform "dumb" general-purpose bombs into "smart" weapons which allow pinpoint target
hits.
Israel's advanced standing in the field of IR detectors and military systems employing this technology, was developed in direct response
to the country's perceived security needs. This will undoubtedly continue to be the driving force behind further developments in detector
technology, related to new systems utilizing the IR detectors.
The Wall Street Journal, in a September 23 assessment of the prospect of various share sectors in the period ahead wrote: "Security:
Shares of previously little-known companies like Invision Technologies, Visage Technology and Magal Security surged last week after the
attacks. Think twice before jumping on the bandwagon.These are small stocks, now trading at lofty multiples".