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Re :EVSNF

Elbit Vision Systems Receives Convertible Loan from Mivtach Shamir

Wednesday February 22, 4:46 am ET

YOQNEAM, Israel--(BUSINESS WIRE)--Feb. 22, 2006--Further to its announcement of January 3, 2006, Elbit Vision Systems Ltd. (OTCBB:EVSNF - News) today announced the consummation on February 21, 2006 of the agreement with Mivtach Shamir Holdings Ltd (TASE:MISH). Pursuant to the Agreement, Mivtach Shamir will provide the Company with a two year $3 million loan (half of which will be held in escrow until the occurrence of certain events), which may, at the option of Mivtach Shamir, be converted into 6,000,000 ordinary shares of EVS, at a price per share of $0.50. The Company will repay the loan in 30 equal monthly installments in the event that Mivtach Shamir decides not to convert the loan. The Company also granted to Mivtach Shamir a two-year warrant to purchase 4,000,000 of the Company's ordinary shares at an exercise price of $0.50 per share, exercisable only if Mivtach Shamir converts the loan. Mivtach Shamir is an Israeli company whose shares are publicly traded on the Tel Aviv Stock Exchange.

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