"Lockheed Martin is working with the defense ministry on an air traffic control and defense system," Bulgarian Defense Minister Nikolai Svinarov told a press conference in Sofia.

David Potts, a senior Lockheed Martin director, said his firm was in Bulgaria "not only to sell equipment but to develop a long-term relationship."

"My company will be glad to support specific projects to help with NATO integration," he said.

"Bulgaria is becoming a very interesting market for us," BAE's European director Mark Stevens told a press conference.

"Bulgaria is facing considerable challenges" in joining NATO, he said, adding that BAE was "looking to partner with Bulgarian companies to achieve these requirements" as well as other projects.

"Our approach is one of strategic partnership not only at the defense level but also at the industrial level," he said.

Tom Leris, international marketing director for General Dynamics, said his compnay was ready to help boost Bulgarian exports.

Rick Dickson, eastern European director for the US-based Harris corporation which specializes in communications and has already invested a million dollars in software and technology transfers in Bulgaria, said the country had a "highly developed industry" and a well-educated workforce.

Bulgarian President Georgi Parvanov said Bulgaria's "military industry is among its greatest advantages."

"It was among the most developed branches of the economy" before the fall of communism and has "kept a large part of its potential," Parvanov said.

He said Bulgaria should work on becoming "a regional center for arms repairs," with possible clients including Bosnia, Greece, Kosovo, Macedonia and Turkey.

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