The contracts call for Lockheed Martin to produce a total of 159 PAC-3 Missiles, which includes 22 PAC-3 Missiles to replenish the Patriot missiles expended during Operation Iraqi Freedom.

In addition to the 159 PAC-3 Missiles, the contracts call for production of additional PAC-3 Missile Segment ground equipment, including six Enhanced Launcher Electronics Systems (ELES) and nine Fire Solution Computers. The U.S. Army Aviation & Missile Command, Huntsville, Ala., is the contracting agency. Delivery of all equipment and missiles should be completed by April 2006.

"As the Defense Department's Director of Operational Test & Evaluation noted in his most recent annual report, the PAC-3 Missile's performance in Operation Iraqi Freedom appears to have been highly effective and consistent with expectations," said Steve Graham, vice president - PAC-3 Missile program for Lockheed Martin Missiles and Fire Control.

"Although limited quantities of PAC-3 Missiles were available during the war, the missile proved itself during two ripple-fire missions, totally destroying two incoming Iraqi missiles and saving countless lives."

The 'hit-to-kill' PAC-3 Missile is the world's most advanced, capable and powerful theater air defense missile. It defeats the entire threat to the Patriot Air Defense System: tactical ballistic missiles (TBMs) carrying weapons of mass destruction, advanced cruise missiles and aircraft. PAC-3 Missiles significantly increase the Patriot system's firepower, since 16 PAC-3s load-out on a Patriot launcher, compared with four of the older Patriot PAC-2 missiles.

Lockheed Martin Missiles and Fire Control is prime contractor on the PAC-3 Missile Segment upgrade to the Patriot air defense system. The PAC-3 Missile Segment upgrade consists of the PAC-3 Missile, a highly agile hit-to-kill interceptor, the PAC-3 Missile canister (which holds four PAC-3 missiles), a Fire Solution Computer and an Enhanced Launcher Electronics System.

These elements are being integrated into the Patriot system, a high to medium altitude, long-range air defense missile system providing air defense of ground combat forces and high-value assets.

The PAC-3 Missile has been selected as the primary interceptor for the multi-national Medium Extended Air Defense System (MEADS). MEADS is a model transatlantic development program for the next generation of air and missile defense. MEADS will focus on risk reduction, application of key technologies and validation of a system design incorporating the PAC-3 Missile as the primary interceptor.

"We believe 2004 will be the year in which we see the first international sales of PAC-3 Missiles and equipment," Graham added.

"The PAC-3 Missile is already approved for export to our allies, and there are several nations that are close to placing their first order of PAC-3s, including The Netherlands, Taiwan and Japan. And as the MEADS interceptor, we should be seeing PAC-3 Missiles protecting forces for decades to come."

In July 2003, Lockheed Martin received a $260 million contract for a Missile Segment Enhancement (MSE) to the PAC-3 Missile. The PAC-3 MSE provides performance enhancements to the missile that will counter evolving threat advancements.

The PAC-3 MSE program includes flight software, flight- testing, modification and qualification of subsystems, production planning and tooling, and support for full Patriot system integration. The MSE program will span 51 months, with flight-testing scheduled to begin in September 2006 and production projected for 2008.

Under the MSE initiative, the company will incorporate a larger, more powerful motor into the missile for added thrust, along with larger fins and other structural modifications for more agility.

The modifications will extend the missile's reach by up to 50 percent. The larger fins, which will fold to allow the missile to fit into the current PAC-3 launch canister, will give the missile more maneuverability against faster and more sophisticated ballistic and cruise missiles.

These enhancements are the natural, pre-planned evolution of a system that was baselined in 1994. The PAC-3 MSE is a true spiral development that will enable a very capable interceptor to grow to the requirements of defeating new and evolving threats. These enhancements will assure that the PAC-3 Missile will be capable of defeating threats far into the future.

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