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RADA Electronic Industries Ltd. Announces Receipt of a Favorable Judgment in the Pending Legal Proceedings With Its Former CEO

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Press Release Source: RADA Electronic Industries Ltd. On Tuesday February 17, 2009, 1:12 pm EST

NETANYA, Israel, Feb. 17, 2009 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (NasdaqCM:RADA - News) today reported that the Regional Labor Court in Tel Aviv has determined that its former CEO and Chairman of the Board of Directors, Mr. Haim Nissenson, is required to repay the US$ 485,000 of loans he received from the Company together with accrued interest and linkage difference as provided by law. The Court also denied all of Mr. Nissenson's claims and allegations against Mr. Herzle Bodinger, the Company's current Chairman of the Board, as well as substantially all of Mr. Nissenson's claims against the Company, except for payment of recuperation fees and vacation fees in the aggregate amount of NIS 109,000, together with accrued interest and linkage differences, as provided by law. The Court found that the retirement agreement between the Company and Mr. Nissenson is null and void since it was not legally approved, tainted with misleading information provided by Mr. Nissenson and included provisions that were not properly approved by the Company's Board of Directors.

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, Mission Computers, Flight Data Recorders, Inertial Navigation Systems), Trainers Upgrades, Avionics systems for the UAV market, and Optronics (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.

Contact:

          RADA Electronic Industries Ltd.
          Shiri Lazarovich - C.F.O
          011-972-9-8921111

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