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IMMEDIATE RELEASE

Release No: 440-00
July 24, 2000

PROPOSED FOREIGN MILITARY SALE TO ITALY ANNOUNCED

The government of Italy has requested a possible purchase of 50 SM-2 Block IIIA Standard missiles with weapon system components, four MK 74 Mod 15 (X-band) Missile Fire Control System, containers, test sets, systems, transmitters, modification kits, spare and repair parts, support and test equipment, publications and technical documentation, training, U.S. government and contractor technical assistance and other related elements of logistics support. The estimated cost is $135 million.

This proposed sale will contribute to the foreign policy and national security objectives of the United States by improving the military capabilities of Italy and further weapon system standardization and interoperability with U.S. forces.

Italy will use these missiles as replacements for older missiles currently in the Italian Self Defense Force fleet. Italy, which already has Standard missiles in its inventory, will have no difficulty absorbing these additional missiles.

The proposed sale of this equipment and support will not affect the basic military balance in the region.

The principle contractors will be Raytheon Missile Systems Company of Tucson, Ariz.; BAE Systems of Rockville, Md.; Raytheon Electronic Systems of Sudbury, Mass.; United Defense of Minneapolis, Minn.; and Litton Marine Systems of Charlottesville, Va. Typically Italy imposes a 50 percent offset against U.S. contractors marketing weapons systems in Italy; however, at this time, there is no known offset agreement associated with this proposed sale.

Implementation of this proposed sale will require the assignment of four contractor representatives to Italy for four weeks to assist in the delivery and deployment of the missiles. Additionally, there will be 10 contractor representatives for one-week intervals twice annually to participate in program management and technical reviews.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.