..... .....The Aegis Ballistic Missile Defense Weapon System touts a highly successful record, but that has not impressed potential Middle East clients. Aegis, with eight successful intercepts, has been regarded as too expensive or large for U.S. allies in the Middle East. The sea-based system has been deployed by the U.S. Navy and developed as a key element in intercepting ballistic missiles from Iran and North Korea.

The Iraq Air Force has drafted requirements for advanced U.S.-origin fighter-jets.

Officials said the air force envisions the procurement of the U.S.-origin F-15 and F-16 fighters over the next few years in a process meant to restore Iraq as a regional air power. They said the acquisition of advanced U.S. combat aircraft would replace Soviet-origin platforms in the Iraqi military.

Israel plans to acquire a precision surface-to-surface missile.

The Defense Ministry has approved negotiations for the purchase of the LORA missile from Israel Aerospace Industries. LORA has been available in surface-to-surface and ship-to-surface variants for a range of military services.

KUWAIT

Kuwait has launched a project to modernize its air defense umbrella. The Kuwait Air Defense Command has overseen an upgrade of its

Amoun air defense systems to the Aspide-2000 configuration. The Egyptian-origin low-level air defense systems would be modernized in a project with Europe's missile house MBDA in a 65 million euro, or $86 million, deal.

Libya has been negotiating a multi-billion-dollar weapons deal with Russia.

Russian industry sources said a Libyan military delegation visited Moscow and held talks on a proposal to purchase up to $2.2 billion worth of Russian weaponry, platforms, systems and training. The sources said the negotiations have reached an advanced stage and could be concluded in 2007.

The Republic of Cyprus has sought military helicopters. Nicosia has issued a tender for utility helicopters for the Cypriot National Guard. Under the Defense Ministry tender, the Greek Cypriot army would procure three search-and-rescue helicopters as well as other platforms.