RADA Electronic Industries Announces Q3 2007 Results

The company reported revenues of $2.8 million for the third quarter of2007, as compared to $2.9 million in the third quarter of 2006. Operatingloss for the third quarter of 2007 was $419,000, as compared to operatingprofit of $348,000 in the third quarter of 2006. As a result, the companyreported a net loss of $559,000 for the third quarter of 2007, compared tonet income of $15,000 in the third quarter of 2006.

Nine Months Financial Highlights

- Total revenue reaches $9.7 million, a 30% increase compared to the sameperiod of 2006.

- Gross profit of $1.9 million compared to $200,000 in 2006.

For the first nine months of 2007 the company reported total revenue of$9.7 million, an operating loss of $703,000 and a net loss of $1.2 million.This compares with total revenue of $7.5 million, an operating loss of $1.9million and a net loss of $2.5 million for the first nine months of 2006.

Commenting on the results, Mr. Zvika Alon, RADA's CEO said, "Thefinancial results of the nine months ending September 30, 2007 are betterthan the same period last year. Notwithstanding the third quarter results, weexpect 2007 annual results to show similar improvement"

About RADA

RADA Electronic Industries Ltd. is an Israel based company involved inthe military and commercial aerospace industries. The Company specializes inAvionics systems (Digital Video Recorders, Ground Debriefing Stations, StoresManagement Systems, Flight Data Recorders, Inertial Navigation Systems),Trainers Upgrades, Avionics systems for the UAV market, and Electro opticcameras for airplanes and armored vehicles.

Note: Certain statements in this press release are "forward-lookingstatements" within the meaning of the Private Securities Litigation Act of1995. Such statements involve known and unknown risks, uncertainties andother factors that may cause actual results to differ materially. Such riskuncertainties and other factors include, but are not limited to, changes ingeneral economic conditions, risks in product and technology developments,market acceptance of new products and continuing product demand, level ofcompetition and other factors described in the Company's Annual Report onForm 20-F and other filings with the Securities and Exchange Commission.

    Contact:    Elan Sigal- C.F.O    RADA Electronic Industries Ltd.    Tel: +972-9-8921111    CONSOLIDATED BALANCE SHEETS    U.S. dollars in thousands, except share and per share data                                                         September   December                                                         30, 2007    31, 2006                                                         Unaudited   Audited    ASSETS    CURRENT ASSETS:    Cash and cash equivalents                            $ 1,275       $ 990    Restricted cash                                          593         704    Trade receivables (net of allowance for doubtful    accounts of $ 63 at September 30, 2007 and $ 34 at    December 31, 2006)                                     3,079       4,296    Other accounts receivable and prepaid expenses           480         200    Costs and estimated earnings in excess of billings    on uncompleted contracts                                 897         668    Inventories                                            2,536       2,468    Total current assets                                   8,860       9,326    LONG-TERM RECEIVABLES AND DEPOSITS:    Long-term receivables                                    983         983    Leasing deposits                                          67          78    Severance pay fund                                     1,890       1,624    Total long-term receivables and deposits               2,940       2,685    PROPERTY AND EQUIPMENT, NET                            2,922       3,359    OTHER ASSETS:    Intangible assets, net and goodwill                    1,703       2,072    Deferred charges, net                                      -          13    Total other assets                                     1,703       2,085    Total assets                                        $ 16,425    $ 17,455    LIABILITIES AND SHAREHOLDERS' EQUITY    CURRENT LIABILITIES:    Short-term bank credit and current maturities of    long-term loans                                        $ 416       $ 559    Convertible note                                           -       2,858    Short-term loan from shareholder                       3,000           -    Trade payables                                         1,239       1,611    Other accounts payable and accrued expenses            3,357       3,503    Billings in excess of costs and estimated earnings    on uncompleted contracts                                 180         285    Total current liabilities                              8,192       8,816    LONG-TERM LIABILITIES:    Long-term loan                                            28         142    Long term loan from shareholders, net of discount        243           -    Accrued severance pay                                  2,284       2,026    Total long-term liabilities                            2,555       2,168    MINORITY INTERESTS                                       432         397    SHAREHOLDERS' EQUITY:    Share capital -    Ordinary shares of NIS 0.015 par value -    Authorized: 16,333,333 shares at September 30, 2007    and December 31, 2006; Issued and outstanding:    8,728,509 shares at September 30, 2007 and December    31, 2006                                                 116         116    Additional paid-in capital                            67,591      67,239    Accumulated deficit                                  (62,461)    (61,281)    Total shareholders' equity                             5,246       6,074    Total liabilities and shareholders' equity          $ 16,425    $ 17,455    CONSOLIDATED STATEMENTS OF OPERATIONS    U.S. dollars in thousands, except per share data                                                 Three months                         Nine months ended           ended       Year ended                                                                   December                             September 30,         September 30,         31,                           2007       2006       2007       2006       2006                                      (Unaudited)                  (audited)    Revenues            $ 9,720    $ 7,456    $ 2,762    $ 2,879   $ 13,037    Cost of revenues      7,851      7,259      2,308      1,843     10,999    Gross profit          1,869        197        454      1,036      2,038    Operating    expenses:    Research and    development             210        139         61        70         181    Marketing and    selling                 952        939        270       377       1,316    General and    administrative        1,410      1,041        542       241       1,794    Total operating    expenses:             2,572      2,119        873       688       3,291    Operating income    (loss)                 (703)    (1,922)      (419)      348      (1,253)    Financial expense,    net                     442        650        118       303        (775)    Other income    (expenses), net           -        (45)         -       (23)         45                         (1,145)    (2,527)      (537)       22      (1,983)    Minority interests    in profits of    subsidiary               35          7         22         7          17    Net (loss) income  $ (1,180)  $ (2,534)    $ (559)     $ 15    $ (2,000)    Net loss per    share:    Basic and diluted    net loss per share  $ (0.14)   $ (0.30)   $ (0.06)  $ 0.003     $ (0.23)