This 'virtual' centre will act as a showcase for the specialist expertise and equipment which UK industry has to offer to the US Missile Defence programme. The MDC will also facilitate the exchange of information on the development of the US programme, generating the best technical advice for policy makers considering future options for the defence of the UK and Europe.

A "foundation group" of five major UK industry contributors AMS, BAE Systems, INSYS, MBDA and Qinetiq, each having a proven track record in missile defence, will work together within the MoD-led MDC. In order to maximise opportunities for the involvement of UK expert groups, other UK companies and universities will be invited to propose further participation in the MDC.

Lord Bach was joined at the inaugural lunch by senior military and industrial figures including Lt.Gen. Ronald Kadish USAF, Director of the US Missile Defence Agency, and Professor Sir Keith O'Nions, Chief Scientific Advisor to the Ministry of Defence.

Lord Bach said: "With the US programme running at some $8bn a year, the opportunities for UK industry are clear. In the Missile Defence Centre we are looking to develop a well- defined, directed, jointly funded hardware demonstration programme focusing on areas of UK expertise. In time, I hope that UK industry will play a significant role within the US missile defence programme." General Kadish said: "UK industry should know that we understand the important role you play and that your creative energies are exactly what we're looking for in the world of missile defence.

"We may be talking about key system components such as sensors or software, where the United States could benefit from the experience and knowledge of our allies. The potential benefits of working together are significant." Guy Griffiths, MBDA Chief Operating Officer said: "MBDA firmly believes that UK industry has significant capability in the area of missile defence. The establishment of an MDC is strongly supported, providing a framework for open and fair exchange of data and technology between the US and the UK, and our prospective industrial collaboration."

James W. Evatt, Senior Vice President and General Manager Boeing Missile Defence Systems said: "In establishing the Missile Defence Centre, the Ministry of Defence has again demonstrated that the special relationship between the United Kingdom and the United States extends to missile defence. The Missile Defence Centre will help enable UK industry participation in the global missile defence programme and in so doing will make for a better system to protect our countries, our deployed forces, and our friends and allies from ballistic missiles."

Notes to Editors:

1. The MDC is co-funded by the UK Government (GBP5M per annum for up to six years) and with matching contributions from UK Industry.

2. Defence Secretary Geoff Hoon and US Defense Secretary Rumsfeld signed the Framework Memorandum of Understanding (MoU) on Ballistic Missile Defence (BMD) in Brussels on 12 June 2003. It sets out the basis of the UK/US industrial relationship on missile defence, building on a long history of co-operation in this area. It does not, however, commit the UK Government to acquisition or deployment of a missile defence system.

3. The MoD's on-line news service UK Defence Today may also be accessed at http://news.mod.uk.

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