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RADA Electronic Industries Announces Q1 2008 Results
May 21, 2008 (10:05 AM EDT)


NETANYA, Israel, May 21 /PRNewswire-FirstCall/ -- RADA Electronic Industries Ltd. today reported its financial results for the first quarter ended March 31, 2008. Revenues were $3.7 million, an increase of 34% from 2007 and gross profit was $0.6 million, an increase of 35% from 2007. Operating loss for the quarter was $319 thousand compared with an operating loss of $339 thousand in the first quarter of 2007. The financial expenses of the period increased to $432 thousand from $182 thousand in 2007. As a result the company reported a net loss of $0.77 million or $0.09 per share. This compares with a net loss of $0.53 million or $0.06 per share, for the comparable quarter in 2007.

Commenting on the results, Zvika Alon, RADA's CEO said, "The revenues and gross profits of the first quarter have improved compared to the Q1 2007 results. Traditionally we have experienced that the first half of the year is weaker than the second, we maintain our view that we will continue to show improvement in our orders backlog resulting from our marketing efforts. While our production deliveries keep increasing, we plan to continue investing during 2008 in research and development mainly in our new Inertial Navigation product line."

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.

CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands, except share and per share data March 31, December 2008 31, 2007 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,308 $ 835 Restricted cash 633 598 Trade receivables (net of allowance for doubtful accounts of $ 62 at March 31, 2008 and December 31, 2007) 3,607 4,907 Other accounts receivable and prepaid expenses 521 305 Costs and estimated earnings in excess of billings on uncompleted contracts 1,137 701 Inventories 3,192 2,609 Total current assets 10,398 9,955 LONG-TERM RECEIVABLES AND DEPOSITS: Long-term receivables 983 983 Leasing deposits 50 57 Severance pay fund 2,228 2,038 Total long-term receivables and deposits 3,261 3,078 PROPERTY AND EQUIPMENT, NET 2,976 2,745 OTHER ASSETS: Intangible assets, net 1,304 1,414 Goodwill 396 214 Total other assets 1,700 1,628 Total assets $ 18,335 $ 17,406 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank credit and current maturities of long-term loans $ 258 $ 490 Trade payables 1,876 1,472 Other accounts payable and accrued expenses 4,097 3,666 Deferred revenues 70 181 Billings in excess of costs and estimated earnings on uncompleted contracts 109 88 Total current liabilities 6,410 5,897 LONG-TERM LIABILITIES: Loan from shareholders, net 67 261 Convertible note from a shareholder, net 1,700 1,622 Long-term loan 282 - Accrued severance pay 2,691 2,442 Total long-term liabilities 4,740 4,325 MINORITY INTERESTS 532 459 SHAREHOLDERS' EQUITY: Share capital - Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at March 31, 2008 and December 31, 2007; Issued and outstanding: 8,858,553 and 8,705,788 shares at March 31, 2008 and December 31, 2007 respectively 119 116 Additional paid-in capital 69,398 68,968 Accumulated other comprehensive income 265 - Accumulated deficit (63,129) (62,359) Total shareholders' equity 6,653 6,725 Total liabilities and shareholders' equity $ 18,335 $ 17,406 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands, except per share data Year Three months ended ended December March 31, 31, 2008 2007 2007 (unaudited) (audited) Revenues 3,691 2,754 14,021 Cost of revenues 3,054 2,281 10,681 Gross profit (loss) 637 473 3,340 Operating expenses: Research and development 94 55 324 Marketing and selling 367 299 1,213 General and administrative 495 458 2,190 Total operating expenses 956 812 3,727 Operating loss (319) (339) (387) Financial expenses, net (432) (182) (629) (751) (521) (1,016) Minority interests in profits of subsidiary (7) (10) (62) Loss before tax (758) (531) (1,078) Tax expenses (12) - - Net loss for the period $ (770) $ (531) $ (1,078) Loss per share: Basic and diluted loss per share $ (0.09) $ (0.06) $ (0.12) Contact: Shiri Lazarovich- C.F.O RADA Electronic Industries Ltd. Tel: +972-9-8921111

CONTACT: Contact: Shiri Lazarovich- C.F.O, RADA Electronic IndustriesLtd., Tel: +972-9-8921111