FOR IMMEDIATE RELEASE                                         CIV
TUESDAY, MAY 20, 1997                              (202) 616-2765
                                               TDD (202) 514-1888

     WASHINGTON, D.C. -- The Pratt & Whitney Group of United
Technologies Corporation Inc. (UTC) will pay the United States
$14.8 million for allegedly conspiring to divert $10 million in
United States military aid into a slush fund subject to the
exclusive control of an Israeli Air Force officer, the Department
of Justice announced today.  The United States previously
recovered about $2 million in funds related to the scheme.       

     The settlement resolves a claim filed by the United States
in U.S District Court in Miami, Florida, against UTC.  It alleged
that UTC and former Israeli Air Force officer Rami Dotan set up a
$10 million fund with U.S. military aid that could be spent at
Dotan's discretion, without the required oversight of the Defense
Security Assistance Agency or procurement authorities within
Israel.  In 1991, Dotan was sentenced to 13 years' imprisonment
by an Israeli military court for his role in related schemes.

     Frank W. Hunger, Assistant Attorney General for the Civil
Division, praised the Israeli Ministry of Defense and National
Police for their help in investigating the case.

     "They provided exemplary assistance in connection with the
Civil Division's prosecution of this matter,"  Hunger said. "The
Israeli police assisted with numerous witness interviews, while
the Israeli Ministry of Defense cooperated with significant
document requests by both sides, and produced scores of Israeli
witnesses for interviews and depositions."

     The complaint alleged that UTC acquired the $10 million in
funds for Dotan through false billings under a contract with
Israel to develop and manufacture a PW1120 turbojet engine for an
Israeli LAVI fighter aircraft. 
     UTC allegedly prepared false purchase orders and submitted
false invoices to Israel between March and July 1987 to collect
$10 million for engine improvement work that was never performed,
according to the complaint.  UTC and Dotan unlawfully concealed a
side-deal to use this $10 million as a "bank" for Dotan.

     At the direction of Dotan, the complaint said, UTC paid
approximately $2.4 million of the $10 million to Yrretco Inc. and
Airtech Inc., two New Jersey companies.  The manager of Yrretco
and Airtech deposited hundreds of thousands of dollars of the
U.S. military aid into the personal bank accounts of Nehemia
Oron, a former IAF Colonel, and Yoram Ingbir, the owner of Ingbir
Engineering.  In 1992, the United States recovered $2 million
from Yrretco, Airtech and Oron, an alleged coconspirator. 

     Dotan confessed to the Israeli police that he and Ingbir
planned to split Ingbir's earnings. 

     Hunger said the Department received substantial assistance
from the Dayton, Ohio, branch office of the Defense Criminal
Investigative Service, and the Defense Contract Audit Agency.

     The General Electric Company and National Airmotive Company
previously have pled guilty to felony counts, and paid
substantial civil damages and penalties, for similar schemes
carried out at the request of Dotan.  The case is United States
v. United Technologies Corporation, No. 95-8251-CIV-MARCUS (S.D.