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Remec Inc. announced it has received an initial $8.9 M production contract from Raytheon Missile Systems for the Tube-launched, Optically-tracked, Wire-guided (TOW) missile second-generation upgrade program. This contract is a result of Raytheon’s recent demonstrated success to prove feasibility to add expanded capability to the TOW weapon system. With the production option for additional microwave units, the total contract value has a potential of greater than $17 M for the first three production lots for Remec. This program is the result of an earlier development success for the TOW Gen 1 system, in which over 1000 production upgrade units were produced by Remec for this missile configuration. The new TOW Gen 2 production contract includes delivery of 1501 Integrated Microwave Assemblies (IMA), production rate tooling and long lead material funding for an additional 807 IMAs. Delivery is scheduled to begin in 2004 with contract completion in early 2006. The TOW 2 weapon system, with the multi-mission TOW 2A and TOW 2B missile capability, is the premier anti-armor/anti-bunker/anti-fortification/anti-amphibious landing weapon system used throughout the world today. TOW is presently in service with over 40 countries and has been integrated on over 15,000 ground, vehicle and helicopter platforms, worldwide.