NETANYA, Israel, Nov. 9 /PRNewswire-FirstCall/ -- RADA Electronic Industries Ltd. (Nasdaq: RADI - News ) today reported its financial results for the first nine month period ended September 30, 2005. The company reported revenues of $9.2 million, compared to revenues of $10.66 million for the period ending September 30, 2004. Gross profit for the nine month period decreased to $0.82 million from $2.89 million for the same period in 2004. SG&A costs for the nine month period remained unchanged at $2.1 million.. As a result, the company reported a net loss of $1.8 million. This compares to a net profit of $476,000 for the first nine months of 2004.

Commenting on the results, RADA's CEO, Mr. Adar Azancot stated, "Our current financial results for September 2005 show a net loss, higher than expected. The main reason for this is our lack of off-the-shelf product sales in 2005. While in 2003 and 2004 our Company recorded over 55% off-the-shelf product revenues, so far in 2005, about 75% of our revenues originate from development programs. Since development programs require a certain amount of investment, and as we have over 10 development programs in progress, without product sales to compensate, a loss was inevitable".

"However, looking at the progress that we have made in a wider perspective along three years, we see substantial growth in all dimensions of the Company. Our development efforts over the past three years well position us with over 10 new product types, compared with only two off-the-shelf products that we had over the last three years; our traditional FACE and CATS. These new products will be available for sale during 2006. We knew that extensive development activity will require investment and we adjusted our Company to this period. I am glad to note that on the marketing front, we see a wider range of customers, and potential penetration into two strategic markets: the US, and India."

As for the strategic vision Mr. Azancot stated; "We believe that RADA today is turning into a solid and mature Company with a broad product offering and with the ability to compete for larger programs in volume, grow externally through M&A activity, and participate in future privatization opportunities in Israel."

The Company will host a conference call, today, November 9th, at 10:30am EST. On the call, Mr. Adar Azancot, CEO and Mr. Elan Sigal CFO, will review and discuss the quarter results and will be available to answer questions. To participate, you may dial one of the numbers below to join the call. Please place your calls at least 5 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

For those unable to participate in the conference call, there will be a replay available starting 2 hours after the call. The replay will be available for two days. To access the reply, dial: 1 866 500 4953 (US) or +972 3 925 5936 (Intl).

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.

NETANYA, Israel, November 9 /PRNewswire-FirstCall/ -- RADA Electronic Industries Ltd. (Nasdaq SmallCap: RADI - News ) today reported its financial results for the first nine months period ended September 30, 2005. The company reported revenues of $9.2 million, compared to revenues of $10.66 million in the period ending September 30, 2004. Gross profit for the nine month period decreased to $0.82 million from $2.89 million for the same period in 2004. SG&A costs for the nine month period remained unchanged at $2.1 million. As a result, the company reported net loss of $1.8 million. This compares to a net profit of $476,000 in the first nine months of 2004.

Commenting on the results, RADA's CEO, Mr. Adar Azancot stated, "Our current financial results for September 2005 show a net loss, higher than expected. The main reason for this is our lack of off-the-shelf products sales in 2005. While in 2003 and 2004 our company recorded over 55% of off-the-shelf products revenues, so far in 2005, about 75% of our revenues originate from development programs. Since development programs require a certain amount of investment, and as we have over 10 development programs in progress, without product sales to compensate, a loss was inevitable."

"However, looking at the progress that we have made in a wider perspective along three years, we see substantial growth in all dimensions of the Company. Our development efforts over the past three years well position us with over 10 new product, compared with only two off-the-shelf products that we had over the last three years: our traditional FACE and CATS. We knew that extensive development activity will require investment and we adjusted our Company to this period. I am glad to note that on the marketing front, we see a wider range of customers, and potential penetration into two strategic markets: the US, and India."

As for the strategic vision Mr. Azancot stated; "We believe that RADA today is turning into a solid and mature Company with a broad product offering and with the ability to compete for larger programs in volume, grow externally through M&A activity, and participate in future privatization opportunities in Israel."

The Company will host a conference call, today, November 9th, at 10:30am EST. On the call, Mr. Adar Azancot, CEO and Mr. Elan Sigal CFO, will review and discuss the quarter results and will be available to answer questions.

To participate, you may dial one of the numbers below to join the call. Please place your calls at least 5 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

For those unable to participate in the conference call, there will be a replay available starting 2 hours after the call. The replay will be available for two days. To access the reply, dial: 1-866-500-4953 (US) or +972-3-925-5936 (Intl).

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.

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