Defence Minister Robert Hill said both countries will share the development costs, technical expertise and benefits of the active phased array radar technology which is being developed by ACT electronics company CEA Technologies.

Senator Hill said phased array radar technology has enormous potential to manage high threat environments. The total development cost is estimated to be approximately $30 million over three years.

"The program represents a significant enhancement to already leading edge technology and will help position Australian industry at the forefront of this field," Senator Hill said.

"This makes radar technology a sound investment for Australian industry with potential for extensive application in the future and significant export opportunity.

"I congratulate CEA Technologies for their ongoing support of this project and thank the Defence Materiel Organisation for the work done to bring about this joint project.

"The program will allow further development of the CEA radar technology for possible use in medium to long range air warfare and ballistic missile defence.

"The technology can also be applied to smaller ships and other Australian Defence Force air surveillance assets.

"It also has potential to be used in a range of US programs including the Littoral Combat Ship and other new ship programs, land and land mobile programs, as well as replacing legacy systems on some US ships.

"We have a very close working relationship with the US Navy on this project, with US staff embedded in the project team."

Senator Hill said the program highlighted the Government's 2000 Defence White Paper commitment to support high technology projects, foster Australian industry's innovative use of advanced technologies and seek opportunities in the global market.

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