The U.S. gives Egypt roughly $2 billion dollars a year in military aid. The only nation to get a larger share is Israel at $3 Billion.
Obviously, if the U.S. is going to significantly fund them, they are going to have the best military that money can buy.
All militaries are generally in some phase of modernization. I doubt that Egypt or Israel have any plans to get in another war with each other.
http://projects.publicintegrity.org/...aid/World.aspx