Northrop-Israeli venture to offer satellites to U.S.

Northrop Grumman Corp. has joined with Israel Aerospace Industries Ltd. to offer Israeli-built spy satellites to U.S. military and intelligence agencies.

Each satellite would cost less than $200 million, said Bob Bishop, a spokesman for Century City-based Northrop. So far, Northrop has no agreements from the U.S. to buy the spacecraft.

Northrop would modify the Israeli satellites with U.S. government-approved encryption technology to provide a "rapid response" radar imaging capability from space, Bishop said. The satellites could be launched within 28 months, compared with the six to 10 years typically required to develop a new surveillance satellite.