Lockheed says US order shows commitment to missile

* Lockheed says nearing 90 percent reliability

* Program facing cancellation without improvements

* Late summer testing to determine program's fate

By Andrea Shalal-Esa

WASHINGTON, July 6 (Reuters) - Lockheed Martin Corp (LMT.N) said on Monday its troubled JASSM cruise missile was nearing a 90 percent reliability rate that could save it from termination after critical tests in late summer.

Alan Jackson, director of both Joint Air-to-Surface Standoff Missile programs for Lockheed, said Monday's $23 million Air Force order for 12 extended-range versions of the missile underscored the service's commitment to the development of the $6 billion radar-evading missile.

U.S. Air Force officials in May said they could cancel the program after years of repeated technical problems if tests this summer did not show a marked improvement in the missile's reliability. JASSM is a long-range, conventional, precision missile designed to destroy fixed and moving targets.

The weapon was declared combat-ready five years ago and has been deployed despite several testing failures, but it is under tough scrutiny now that the Pentagon is reexamining weapons programs with cost overruns and technical problems.

Jackson said the company had invested its own dollars in improvements and increased screening of components to meet the Air Force's 90 percent reliability requirement, due to take effect in several years.