Value Microcaps Motherboard

[mikeo56]

Eltek Wins a Three-Year, Multi-Million Dollar Strategic Agreement with the Israel Aircraft Industries (IAI)
Thursday October 6, 8:30 am ET


PETACH-TIKVA, Israel--(BUSINESS WIRE)--Oct. 6, 2005--Eltek Ltd. (NasdaqSC: ELTK):
Eltek was chosen following a highly contested tender
Company expects new agreement to generate revenues of approximately $4.5 million over a three year period
Eltek Ltd. (NasdaqSC: ELTK), the leading Israeli manufacturer of advanced circuitry solutions, today announced it has expanded its relationship with Israel Aircraft Industries (IAI), signing a three-year, multi-million US Dollar strategic agreement to provide IAI with its high end PCBs for use in highly complex, mission critical avionics equipment and applications. Eltek is one of two PCB suppliers that had been chosen. IAI has already begun to place orders for Eltek's specialty PCBs under the new agreement.

Commenting on the agreement, Arieh Reichart, President and Chief Executive Officer of Eltek, said: "We are honoured to have been chosen by IAI for this strategically important contract. Achieved following a strict evaluation process, this competitive win is another validation of Eltek's unique and advantageous technological competencies and additional proof of the increased recognition these capabilities are gaining among top-tier customers.

"I am very encouraged with the accelerated momentum we are experiencing in signing multi-quarter deals with both existing and new customers. The mutually beneficial award will further strengthen Eltek's long and successful relationship with IAI and provides us with new opportunities in Israel and abroad."

Amnon Shemer, CFO of Eltek commented: "This important win signifies our first multi-year multi-million contract ever achieved with IAI, while IAI is very well known for its highly demanding quality and performance standards. Eltek expects this agreement to generate revenues of approximately $4.5 million over a three-year period. Our growing success in winning this type of agreements will clearly benefit our overall corporate productivity and efficiency along with revenue stability, thus positively impacting our operating results."

About the IAI

Israel Aircraft Industries is globally recognized as a leader in developing military and commercial aerospace technology. This distinction is the result of nearly a half-century of designing, engineering and manufacturing, for customers throughout the world. Company sales in the last 5 years was 10.8 billion U.S. $ and IAI's net profit for this period was 323 million U.S. $.

About Eltek

Eltek is Israel's leading manufacturer of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. Eltek has invested heavily in upgrading its production facilities over the past five years.

For more information, visit Eltek's World Wide Web site at www.eltekglobal.com.

Eltek Safe Harbor Statement

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to,statements regarding expected results in future quarters, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission.



--------------------------------------------------------------------------------
Contact:
ELTEK Ltd.
CFO
Amnon Shemer, [phone]
[e-mail]