News Release







IAI’s Bedek Aviation Group to Supply B737-300 Passenger to Freighter Conversion Kits to Qantas Ltd.





Ben Gurion International Airport, Israel, 27 March 2006 -- Israel Aircraft Industries Bedek Aviation Group (Bedek) will supply Qantas Airways Ltd. with B737-300 Passenger to Freighter conversion kits and technical support for four aircraft. The B-737-300s will be converted in-house by Qantas using Bedek’s Supplemental Type Certificate (STC).



David Arzi, Corporate Vice President and General Manager of Bedek Aviation Group says: “We are pleased that Qantas is converting its B737-300’s, using IAI’s kits and technical support. This deal marks a significant milestone in our relationship with Qantas and I am confident it will lead to future strong mutual business opportunities.”



IAI’s Bedek Aviation Groupis a full service provider of aircraft, engines and components to airlines and cargo industries. Bedek is a leading modification center for a wide range of narrow and wide-body aircraft, includingB737-300SF, B737-300QC, B767-200SF, and 747-100/200SF conversions.



Israel Aircraft Industries is a recognized leader in the aerospace and defense industry and Israel’s largest industrial exporter.



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