RADA
                          RADA ELECTRONIC INDUSTRIES LTD.

FOR IMMEDIATE RELEASE                                            BUSINESS NEWS

                Rada Acquires 49 Percent of Jetborne, an Aircraft
                                Spare-Parts Provider

     Herzilya Pituach, Israel, August 18, 1997 - Rada Electronics Industries 
Ltd. (NASDAQ: RADIF), a leading aerospace electronics business, today reported 
that it has entered into a stock purchase agreement with Jetborne 
International Inc., an aircraft spare-parts provider based in Miami, Florida 
(Jetborne).

     Under the terms of the agreement, Jetborne will issue to Rada 1,141,630 
shares after the execution of a proposed 1 for 10 reverse stock split, in 
consideration for spare-parts sold to it by Rada in December 1996.  The shares 
represent a 49 percent ownership interest in Jetborne.

     The calculation of the value of Jetborne for the transaction was based on 
the book value of Jetborne.  The 49 percent ownership interest in Jetborne was 
determined to be approximately $2,700,000.  In determining Jetborne's value, 
Rada obtained an expert appraisal of inventory and an independent evaluation.  
Rada intends to acquire a controlling interest in Jetborne in the future and 
is negotiating the terms.

     Mr. Yair Grinberg, Rada's Chairman of the Board, commented today, "This 
acquisition will enhance and expand our commercial aviation activities.  
Rada's strategic decision to focus on establishing services facilities 
utilizing our CATS tester led to the decision to renew our involvement in the 
commercial aviation spare parts business. In this business, efficient service 
means reliability and fast turn around.  The combined capabilities of testing 
and repair and the immediate supply of replacement of both avionics and other 
spare parts needed by the airlines will position us as a unique service 
provider in the industry."  Rada's first service center in the US is scheduled 
to become operational by the end of the year in Miami."

     The CATS, Commercial Aviation Test System, developed and manufactured by 
Rada provides fast trouble shooting and fault detection for avionic computers, 
power control boxes and other electronic components of commercial aircraft 
such as the Boeing 777, 767, 747, 737 and 727; McDonnell Douglas and the 
Airbus family of aircraft.

     CATS units are used by such major airlines as British Airways, United 
Airlines, US Air, Alitalia, Olympic, China United and by the third-party 
maintenance providers, including Aero Instrument & Avionics Inc. and Aviation 
Avionic & Instrument Corp. in the US, FLS in the UK, GAMECO Ltd. in China, IAI 
in Israel and Alliance International Maritime Limited in the C.I.S.

     Prior to the transaction, 54 percent of Jetborne shares were held by 
Bodstray Company Limited, a Hong Kong corporation, and the remaining 46 
percent by the public.  Jetborne's Chairman of the Board is Eles Dobronsky, 



who was appointed by the majority owner.  Mr.  Dobronsky also serves as a
Director of Rada.  Mr. Dobronsky did not participate in the vote when Rada's 
Board of Directors approved this transaction.

     Jetborne is a public company which on September 17, 1993, emerged from 
bankruptcy reorganization following court approval of its final plan of 
reorganization and entry of an order discharging it from the bankruptcy 
proceedings.  Jetborne was forced into involuntary bankruptcy by its creditors 
on December 10, 1991, and shortly thereafter converted the bankruptcy 
proceedings to a voluntary reorganization and operated as Debtor-In-Possession 
until September 1993.  Jetborne sales prior to the involuntary bankruptcy have 
mounted to $9.5 Million in 1991.  Jetborne is currently delinquent in its 
filings with the SEC, but is in the process of becoming current with reporting 
obligations.

     During the fiscal year ended April 19, 1997, Jetborne had revenues of 
approximately $1.3 Million and incurred a loss of $300,000.  Rada believes 
that the increase of working capital and its combined operations with Rada's 
maintenance centers will enable the business of Jetborne to grow and become 
profitable.

     Rada was previously involved in spare parts trading through its 
previously owned subsidiary, Kellstrom Industries Inc., which was sold two 
years ago, and through its Dutch subsidiary, Adar, which owned the Inventory 
which was sold to Jetborne.  Rada believes there are promising business 
opportunities for the combined operation and intends to offer spare parts in 
its maintenance center operations, initially at its first operating center in 
China.



     Rada Electronic Industries Ltd. is incorporated in Israel and has a 
subsidiary in the United States.  The company is engaged in the development, 
manufacturing and marketing of advanced electronic equipment for the aerospace 
and commercial aviation markets.

Contacts:

Yair Grinberg                          Leslie Creutzfeldt Wolf
Rada Electronic Industries             The Anne McBride Company
Tel. 011-972-9-954-2182                Tel. 212-983-1702