Jobs will be created at a technology firm which secured a contract for work on the world's most advanced precision bomb.

The Government announced last night it would give the Ministry of Defence £300 million to equip fighter-bombers with the new Paveway IV air-to-ground weapon.

The satellite-guided system will be manufactured in the UK by Raytheon System, with a key role being played by Portslade-based MBM Technology.

Paul Hills, general manager of the firm's defence business, said the news would create up to 15 new jobs.

He said: "In partnership with Raytheon, we will manufacture the interface which attaches the weapon to the aircraft.

"We already do this for a wide range of manufacturers worldwide and have been involved with this system for two to two-and-a-half years.

"It will generate significant sales and jobs for MBM - probably 10 to 15 jobs for the company. At the moment we employ about 120 people on this site.

"This is very good news for us. It has been a big investment for us and we are pleased Raytheon's design won through."

The new bomb will weigh only 500lb, compared to its 1,000lb predecessor, meaning a bomber will be able to carry more weapons or increase its range by using less fuel.

Its Global Positioning System technology means it can see through clouds or smoke screens, unlike laser-guided bombs and give British bombers more precision at any time of day or night.

Dean Mason, weapon systems manager at Raytheon Systems, said: "Paveway IV provides users with a state-of-the-art, all-weather precision munition that is easy to integrate on current and future aircraft."

The bombs are dubbed "fire and forget" weapons because of their satellite-guided technology and fuses which only arm the bomb two seconds before impact.

If it is jammed or veers off target, the fuse will not arm and the warhead will not explode, the MoD said.

The weapons will go to the RAF and Royal Navy's bomber fleets, including Harriers and Tornados, and be in place by 2007.