This is the first manufacturing contract for the upgraded SM-3 Block IA. Raytheon has already delivered six SM-3 Block I missiles and is on contract to deliver five more. The SM-3 Block IA provides an incremental upgrade to improve missile reliability and supportability at a reduced cost.

SM-3 also recently transitioned from engineering development to manufacturing build process and is being built along with production SM-2s in Raytheon Missile Systems' factories in Tucson, Ariz., and Camden, Ark. The SM- 3 Kinetic Warhead will be built and tested at a state-of-the-art kill vehicle manufacturing facility in Tucson which enables the company to incorporate the best of spacecraft quality and high-rate missile manufacturing expertise.

"This award is a real testament to the SM-3 engineers, technicians, teammates and subcontractors around the nation who provide this key element of our nation's defense against ballistic missile threats," said Ed Miyashiro, vice president of Raytheon Missile Systems' Naval Weapon Systems. "It's also a sign of our customer's confidence in us. As we continue to make capability improvements, and increase manufacturing quantities, we will also be able to continue reducing the missile cost."

Raytheon is responsible for the development and integration of the SM-3 "all up round," including the SM-3 kinetic warhead, and leads an integrated team that includes The Boeing Company, Aerojet and Alliant Techsystems. Work on SM-3 also is done in Anaheim, Calif., and Elkton, Md.

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