MEADS is a transatlantic cooperative effort between the United States, Germany, and Italy to develop an air and missile defense system that is tactically mobile and transportable. It will be capable of countering tactical ballistic missiles and air-breathing threats, including cruise missiles. MEADS will improve the limited area defense of vital assets, both civilian and military, as well as provide capability to move with and protect the maneuver forces. MEADS will provide coalition forces with a system capability that is currently not available: a weapon system that can be deployed where it is needed with the versatility to provide force and asset protection during all phases of military operations. It will be employed either in combination with other systems as part of an integrated air defense, or individually in stand-alone operations.

The Medium Extended Air Defense System (MEADS), formerly the Corps SAM program, is the only Theater Missile Defense (TMD) system under consideration to provide maneuver forces with 360 degree defense protection against the real and growing threat of short-range tactical ballistic missiles, cruise missiles, and unmanned aerial vehicles. This system is intended to provide fundamental enhancements in tactical mobility, strategic deployability, and operational capability. Key in this regard will be transportability on C-130 aircraft as a highly mobile system designed to protect forward deployed and maneuvering forces. MEADS would replace Hawk, and some portion of Patriot. DOD plans to defer equipping three Patriot battalions with PAC-3 pending a decision on development and deployment of MEADS.

MEADS is currently in a transition phase between the Project Definition Phase (PDF) and the Design and Development Phase (D&DP). MEADS is planning to use a three year Risk Reduction Phase before entering a full D&D phase. A RFP was due to be sent out August/September 1999, in order to cover Prime contractor involvement in this phase, and to prepare for the D&D Phase. A six-month negotiation period was planned for this contract after RFP release. On 19 May 1999 the Ballistic Missile Defense Organization (BMDO) and NATO Medium Extended Air Defense System Organization (NAMEADSMO) announced the selection, by a tri-national source selection committee, of MEADS International as the prime contractor for MEADS. MEADS International is a joint venture comprised of Lockheed Martin of the United States, DaimlerChrysler Aerospace AG of Germany, and Alenia Marconi Systems of Italy. NAMEADSMO is made up of a steering committee consisting of one representative each from the US, Germany, Italy, and the NATO MEADS Management Agency (NAMEADSMA), located in Huntsville, Alabama.

During the MEADS risk reduction phase, a decision was made to incorporate the Lockheed Martin PAC-3 missile into the system. The German and Italian governments have called for study on bringing a second missile into the program in addition to the PAC-3.

In October 2002 the Office of the Secretary of Defense (OSD) approved a proposal from the Missile Defense Agency (MDA) to transfer management of the Medium Extended Air Defense System (MEADS) program from MDA to the Army.