EXHIBIT 99.1

RADA Electronic Industries Announces 2011 First Quarter Results

First Quarter Net Profit of $393,000

Press Release

Source: RADA Electronic Industries Ltd.

On Tuesday May 31, 2011, 10:00 am EDT

NETANYA, Israel, May 31, 2011 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA - News) announced today its financial results for the quarter ended March 31, 2011.

2011 First quarter highlights include:

·   Revenues of $7.8 million, a 72% increase compared to the first quarter of 2010.

·   Operating Profit of $543,000.

·   Net Profit of $393,000 compared to a net loss of $518,000 for the first quarter of 2010.

2011 First quarter Results

Revenues increased by 72% to $7.8 million from $4.5 million in the first quarter of 2010. The increase is attributed mainly to projects being executed for Latin American customers.

Gross Profit increased by 168% to $2.5 million from $929,000 in the first quarter of 2010.

Operating Profit increased to $543,000 compared with a $247,000 loss in the first quarter of 2010.

Financial Expenses totaled $152,000 compared with financial expenses of $279,000 in the first quarter of 2010.

As a result, the Company reported a net profit of $393,000, or $0.04 per share, for the first quarter of 2011 compared to a net loss of $518,000 or $0.06 per share, for the first quarter of 2010.

Management Comment

Commenting on the results, Zvika Alon, RADA's Chief Executive Officer said, "We are pleased with our first quarter 2011 results, which put us on track with our strategic plan for the year. The increase in revenues can be partly attributed to the large scale integration projects we are executing for our Latin American customers. As a result of this increase, we have increased our R&D investment, particularly in the high growth areas such as our navigation and radar products, which will help us expand our product offerings in the coming years. Despite the weakened US dollar versus the Israeli Shekel this past quarter, we succeeded to mitigate its impact through hedging activities, which helped us reduce our financial expenses this quarter."

"Looking ahead," continued Mr. Alon, "we will continue to pursue large opportunities in the navigation and radar product markets and expect them to become major growth drivers for the Company in the future."

To arrange a call with management to discuss the results, please reach out to our Investor Relations contact, below.

About RADA

RADA Electronic Industries Ltd. is an Israel based defense electronics contractor. The Company specializes in Data Recording and Management (Digital Video & Data Recorders, Ground Debriefing Stations, Head-Up Display Cameras), Inertial Navigation Systems for air and land applications, Avionics Solutions (Aircraft Upgrades, Avionics for UAVs, Stores Management Systems, Mission & Interface Computers) and Radar Sensors for active protective systems for land vehicles.

Note: Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risk uncertainties and other factors include, but are not limited to, changes in general economic conditions, risks in product and technology developments, market acceptance of new products and continuing product demand, level of competition and other factors described in the Company's Annual Report on Form 20-F and other filings with the Securities and Exchange Commission.

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
	March 31,		December 31,
ASSETS	2011		2010
	Unaudited		Audited
CURRENT ASSETS:
Cash and cash equivalents	$	1,292	$	850
Restricted cash		1,455		1,448
Trade receivables (net of allowance for doubtful accounts of $ 26 and $ 78 at March 31, 2011 and at December 31, 2010 respectively)		11,124		9,452
Other receivables and prepaid expenses		766		820
Costs and estimated earnings in excess of billings on uncompleted contracts		692		2,698
Inventories		5,383		6,215
Total current assets		20,712		21,483
LONG-TERM RECEIVABLES AND OTHER DEPOSITS		1,504		1,546
PROPERTY, PLANT AND EQUIPMENT, NET		3,042		3,173
OTHER ASSETS:
Intangible assets, net		271		309
Goodwill		587		587
Total other assets		858		896
Total assets	$	26,116	$	27,098

	March 31,			December 31,
LIABILITIES AND SHAREHOLDERS' EQUITY	2011			2010
	Unaudited			Audited
CURRENT LIABILITIES:
Bank Credit and current maturities of long-term loans	$	5,083		$	4,274
Trade payables		1,812			3,430
Other accounts payable and accrued expenses		5,532			5,714
Billings in excess of costs and estimated earnings on uncompleted contracts		148			471
Total current liabilities		12,575			13,889
LONG-TERM LIABILITIES:
Loans from shareholders, net		705			881
Convertible note from a shareholder, net		2,645			2,598
Accrued severance pay and other long term liability		560			547
Total long-term liabilities		3,910			4,026
RADA SHAREHOLDERS' EQUITY
Share capital --
Ordinary shares of NIS 0.015 par value - Authorized: 16,333,333 shares at March 31, 2011 and December 31, 2010; Issued and outstanding: 8,883,524 and 8,868,857 at March 31, 2011 and at December 31, 2010 respectively.		119			119
Additional paid-in capital		70,093			70,060
Accumulated other comprehensive income		411			392
Accumulated deficit		(61,595	)		(61,988	)
Total RADA shareholders' equity		9,028			8,583
Noncontrolling interest		603			600
Total equity		9,631			9,183
Total liabilities and equity	$	26,116		$	27,098

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
	Three months ended March 31,					Year ended December 31,
	2011		2010			2010
	(unaudited)					(audited)
Revenues		7,787		4,529		$	27,523
Cost of revenues		5,298		3,600			20,117
Gross profit		2,489		929			7,406
Operating expenses:
Research and development		669		259			1,182
Marketing and selling		748		509			2,563
General and administrative		530		408			1,732
Total operating expenses		1,947		1,176			5,477
Operating profit (loss)		542		(247	)		1,929
Financial expenses, net		152		279			1,184
Consolidated net income (loss)		390		(526	)		745
Less: Net (income) loss attributable to Noncontrolling interest		3		8			(11	)
Net income (loss) attributable to RADA shareholders	$	393	$	(518	)		734
Net income (loss) per share:
Basic and diluted net income (loss) per share	$	0.04	$	(0.06	)	$	0.08

Contact:

Shiri Lazarovich- C.F.O

RADA Electronic Industries Ltd.

Tel: +972-9-8921111

Shiri.Lazarovich@rada.com

Investor Relations Contact

Ehud Helft/ Porat Saar

+1 646 233 2161

Rada@ccgisrael.com