ISRAEL OFFERS CHINA SATELLITES FOR PHALCON

TEL AVIV [MENL] -- China has agreed to purchase two civilian Israelicommunications satellites as part of a compensation package for thecancellation of the Phalcon airborne early-warning system. The two countries have signed an initial agreement for the Chinesepurchase of two Amos high-power communications satellites, which willcontainmultiple transponders in a deal estimated at $250 million. The facility willbe larger than the Amos-2 satellite Israel plans to launch in 2007.