In 1996 the upgrade program of the IAR 99 was revived with the need for a lead-in trainer for the newly upgraded MiG-21 Lancer. The Israeli company Elbit was chosen as an integrator. The avionics package is compatible with 5th generation fighter systems and it is inspired by the MiG-21 Lancer upgrade but adapted to IAR 99 needs. The first upgraded IAR 99 was the 18th production aircraft (number 718), which performed its first flight on 22 May 1997. The upgraded IAR 99 was displayed at Paris in 1997 and Farnborough in 1998.