Acoustech Corporation (Acoustech), Applied Physical Sciences Corporation (APS), and Navmar Applied Sciences Corporation (Navmar) have teamed to develop a low cost underwater detection system that will protect assets located along the shoreline from domestic and foreign terrorists. Acoustech will be responsible for overall project management and underwater transducer development, APS will be responsible for detection system algorithm development, and Navmar will be responsible for system integration. The detection system combines Navmar`s Modular Intelligent Surveillance Tool (MIST), a passive optical/thermal surveillance system, with a multistatic sonar, and an acoustic trip-wire to detect and track terrorists that are approaching a shoreline asset. The Phase I effort is centered on developing the receive transducers and detection algorithms for the multistatic sonar system. These technologies will then be used to perform an experiment to determine the location of a stationary target in a controlled laboratory environment. The target will be representative of a diver that is equipped with and without a scuba tank so the difference in target-strength can be investigated for open- and closed-circuit divers. Other aspects of the Phase I effort concern the technical innovation required to integrate of the acoustic systems into MIST and the development of a comprehensive commercialization plan