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<FILENAME>ex3tojune2003.txt
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                                    EXHIBIT 3

Elbit Systems Venture,  MediGuide,  Inc., Signs Agreement with Boston Scientific
Corporation  for Advanced  Intravascular  3-D Imaging and  Intrabody  Navigation
Technology

Friday May 16, 12:07 pm ET

HAIFA, Israel, May 16 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (Nasdaq: ESLT
- News)  announced  today that  MediGuide,  Inc., a privately  funded venture in
which Elbit  Systems is a majority  shareholder,  has signed an  agreement  with
Boston  Scientific  Corporation  (NYSE: BSX - News) to develop and commercialize
technology  platforms in the fields of 3-D  intravascular  imaging and intrabody
navigation.  The agreement  includes an equity investment in MediGuide by Boston
Scientific,  co-development responsibilities for integrating Boston Scientific's
device platforms with MediGuide's proprietary guidance system,  exclusive global
distribution  and an option for Boston  Scientific  to  acquire  MediGuide  at a
future time. Other investors in MediGuide Inc. currently include VitaLife, V.C.,
The Fishman Group, Docor International and D.O.H. Investment Ltd.

MediGuide  has  developed  an advanced  navigation  system  known as the Medical
Positioning System (referred to as MPS), which enables the real time tracking of
miniature  sensors  integrated into therapeutic and diagnostic  medical devices.
These "MPS ready" devices will allow physicians to accurately track  progression
of  the  device  as  they  are  manipulated  through  the  human  anatomy  while
continuously registering their exact location and orientation utilizing advanced
diagnostic systems such as Boston Scientific's  intravascular  ultrasound (known
as IVUS) system as well as additional  non-invasive diagnostic systems including
angiography,  magnetic resonance imaging (MRI) and computed  tomography scanning
(CT).

Boston Scientific and MediGuide initially plan to develop a product,  which will
integrate the MPS system with Boston  Scientific's IVUS system. This combination
of  technologies  will expand the two  dimensional  aspect of the existing  IVUS
image into a three dimensional  image. This three dimensional image will provide
more useful  clinical  information  and allow for easier  interpretation  of the
image by  interventional  cardiologists  improving  its clinical  utility in the
hospital.

There  are  several  additional  applications  that  will  be  investigated  for
integrating the navigation  technology into therapeutic devices in the fields of
interventional  cardiology  and radiology,  neuroradiology,  endoscopy and other
specialties.

With greater control and precise  three-dimensional  catheter  positioning,  the
breadth of therapeutic  treatment  options may be expanded and patient  outcomes
potentially  improved.  Additionally  this  non-fluoroscopic  catheter  guidance
technology should help to reduce radiation exposure for patients and physicians,
as well as minimize the use of contrast during catheterization procedures.

"Led by  advances  in  catheter-based  technology,  interventional  medicine  is
evolving to treat more complex  disorders which have  historically  been targets
for more invasive surgical  techniques," said Fred Colen,  Senior Vice President
and Chief Technology Officer, Boston Scientific Corporation. "When combined with
Boston  Scientific's  advanced  catheter  technologies,  MPS will bring  greater
precision to less-invasive therapies."

"We are very pleased to have a broad  partnership  with Boston  Scientific" said
Gera Strommer, President and CEO of MediGuide, "We think this strategic alliance
will help both parties with fast market  penetration of the MPS technology,  and
with this to become a standard in any catheterization procedure".

Joseph Ackerman,  President and CEO of Elbit Systems commented,  "We are pleased
that  the  results  of  our  considerable  investments  in  developing  advanced
technologies  are also  applied in  medical  use,  in  cooperation  with  Boston
Scientific, a distinguished leader in the field."

About Elbit Systems Ltd.

Elbit Systems Ltd. is an international  defense electronics company engaged in a
wide range of  defense-related  programs  throughout the world,  in the areas of
aerospace, ground and naval systems, command, control, communications, computers
and  intelligence  (C4I) and advanced  electro-optic  technologies.  The Company
focuses on the  upgrading of existing  military  platforms  and  developing  new
technologies for defense applications.

STATEMENTS   IN  THIS  PRESS  RELEASE   WHICH  ARE  NOT   HISTORICAL   DATA  ARE
FORWARD-LOOKING  STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES
OR OTHER  FACTORS  NOT  UNDER THE  COMPANY'S  CONTROL,  WHICH  MAY CAUSE  ACTUAL
RESULTS,  PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY  DIFFERENT
FROM  THE  RESULTS,   PERFORMANCE  OR  OTHER   EXPECTATIONS   IMPLIED  BY  THESE
FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE
DETAILED IN THE  COMPANY'S  PERIODIC  FILINGS WITH THE  SECURITIES  AND EXCHANGE
COMMISSION.



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