RADA Electronic Industries Ltd. (Nasdaq: RADA)

May 2019

This presentation contains certain statements that may be deemed to be “forward looking statements” within the meaning of Section 27Aof the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Reference is made in particular to thedescriptions of our plans and objectives for future operations, assumptions underlying such plans and objectives and other forward lookingterminology such as “will”, “would”, “may”, “should”, “estimates”, “expects”, “believes”, anticipates”, “intends”, “projects”, “predicts”,“targets”, or similar terms, variations of such terms or the negatives of such terms. Forward looking statements are based onmanagement’s current expectations. Although the Company believes that the expectations reflected in these forward-looking statementsare reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect.

The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety offactors including but not limited to those risks and uncertainties relating to difficulties or delays in development, testing, regulatoryapproval, production and marketing of the Company’s product candidate and those risks and uncertainties associated with the protection ofthe Company’s intellectual property rights. All forward-looking statements attributable to the Company or persons acting on its behalf areexpressly qualified in their entirety by these factors. You should not place undue reliance on these forward-looking statements, whichspeak only as of the date of this presentation. Other than as required under the securities laws, the Company does not assume a duty toupdate these forward-looking statements.

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DISCLAIMER

COMPANY OVERVIEW

145EMPLOYEES

$140mMARKET CAP

as of May 21, 2019

RADA

Turnaround as focus moves from legacy avionics & INS

to…

2018 GEOGRAPHIC SALES BREAKDOWN

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SHAREHOLDERS

Design, sell & manufacture

Ground-based tactical radars

Avionics & Inertial Navigation Systems (INS)

Defense Electronics company: HQ’ed in Israel

Growth Engine: Tactical Radars for the Maneuver Force

TAM of $5bn

DBSI25%

Free Float75%

Israel

OtherUSA

Asia

Europe

PRODUCTS & TECHNOLOGIES

Mini-Tactical Multi-Mission AESA Radars for the Maneuver Force

Applications:

Counter-drone system of systems;

Active protection of combat vehicles;

Short-Range hostile fire locators;

All-threat air surveillance;

3-D border surveillance;

Digital recorders, Avionics Systems and Inertial Navigation Systems for Aircraft

Applications:

Mission video & data recordings;

Weapon management systems;

Avionics for manned platforms & UAVs;

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TACTICAL RADARS

30% → 51%2016

AVIONICS

70%→ 49%2016

2018 2018

SALES IN 2018 ($M)

RADARS: OPERATIONAL MISSIONS

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https://www.youtube.com/watch?v=S-t6Az6AEDs

Numerous successful demonstrations in past 3 years

Segment starting to proliferate

Part of the RAFAEL Drone-Dome, Elbit ReDrone, AVT XMADIS, ELT ADRIAN, and others

IN THE HEART OF COUNTER-DRONE SOLUTIONS

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RADA Positioned for Growth: Exceptional tactical-grade capabilities at significantly lower prices in radar markets

COMPETITIVE POSITIONING

Top-notch technology, high performance and adaptable to multiple applications

Strong partnerships and customer relationships: tailor products to customer requirements

Equivalent-capability systems from RADA versus competitors at dramatically lower prices

Technology development targeting a higher price/performance class

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US ARMY MODERNIZATION PRIORITIES

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First radar sales were made to US customers as part of HEL R&D programs:

On-the-Move C-UAS systems to USMC over 150 radars, tested & fielded

Active Protection (APS) market is emerging est. at over 15,000 combat vehicles

Potential market size for mini tactical radars estimated at ~2.5B over next 10 years

RADA Technologies LLC – US Subsidiary SSA, “Americanization”, production

Cooperation agreement with Leonardo DRS on C-UAS, M-VSHORAD markets

Selected for the US Army IM-SHORAD potential of 600 MHR radars

FOCUS ON THE US MARKET

US NAVY

MARINE CORPS

HEL-MD, Silent Strike ADAM, Athena, LLD GBAD DE OTM, MCWL

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Laser Systems

CHR & MHR ONBOARD US TACTICAL VEHICLES

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SELECTED CUSTOMERS & PARTNERS

IAFIDF US Navy

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Indian Security ForcesUS Marines US Army

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119

Total Revenue

0

10

20

30

40

50

2016 2017 2018 2019E

ACCELERATING REVENUE GROWTH

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US$ millions

>100%

43%+

$26.2m$28.0m

Radars

Avionics

$40m+estimated

$12.8m

US$ millions

short-term project

delivery

start of investment in US subsidiary & capabilities

Accelerating growth from expanding US activities

Size is for illustrative purposes only

FINANCIAL STATEMENT SUMMARY

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US$ thousands FY 2016 Q117 Q217 Q317 Q417 FY 2017 Q118 Q218 Q318 Q418 FY 2018 Q119

Total Revenue 12,821 4,675 5,317 7,071 9,119 26,182 6,020 6,576 7,045 8,391 28,032 8,687

Gross Profit 1,442 1,669 1,664 2,755 2,175 8,263 2,179 2,380 2,510 3,049 10,118 3,153

R&D 759 198 208 480 689 1,575 592 692 792 1,016 3,092 1,366

S&M 2,269 436 419 629 653 2,137 634 650 729 847 2,860 882

G&A 1,814 686 526 627 729 2,568 748 934 1,134 1,185 4,001 1,463

Op. Income (Loss) (3,400) 349 511 1,019 104 1,983 205 104 (145) 1 165 (558)

Financial Expenses, net

(1,116) 29 (38) (188) 41 (156) 8 (4) 43 72 119 42

Net Income (Loss) (4,908) 390 501 794 657 2,342 204 12 (176) (263) (223) (516)

EPS ($) (0.35) 0.02 0.02 0.03 0.02 0.09 0.01 0.00 0.00 0.00 0.01 (0.01)

EBITDA (non-GAAP)

(2,562) 747 838 1,380 5407 3,505 535 546 310 504 1,895 -

KEY INVESTMENT HIGHLIGHTS

Growth EngineRadar

Stable Legacy Avionics Business

Strong Growth

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Strong revenue growth: 2.2x between 2016-2018

Investing in further growth: expecting 40%+ in 2019

From here on, strong incremental gross profit will accrue to bottom line

Highly competitive, superior technology

Addressing huge emerging market: TAM of 5bn+

Initial orders delivered to key customers; expected to expand strongly

Gearing towards Programs of Record

Profitable & cash generating

Discontinued non-synergetic business

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Thank You