e d t o t h e t h r e edimensional bearing only measurement problem (BOMP) w h e r e t h e EKF o f t e n shows e r r a t i c b e h a v i o r s . 1. I n t r o d u c t i o n The c o n s t r u c t i o n of i m p l e m e n t a b l e o b s e r v e r s f o r n o n l i n e a r d e t e r m i n i s t i c s y s t e m s a n d n o n l i n e a r f i l t e r s f o r n o n l i n e a r s t o c h a s t i c s y s t e m s h a s had very few succ e s s e s . E x c e p t f o r a f e w n o t a b l e e x c e p t i o n s ( e . g . [ 1 3 ] ) i m p l e m e n t a t i o n i s based upon ad hoc expansions and line a r i z a t i o n t e c h n i q u e s . T h e r e f o r e , i n o r d e r t o o b t a i n a c o m p u t a t i o n a l l y r e a l i z a b l e a n d p r a c t i c a l f i l t e r , t h e EKF i s u s u a l l y s u g g e s t e d f o r m o s t n o n l i n e a r e s t i m a t i o n p r o b l e m s . F o r t u n a t e l y , t h e r e a r e many examples where t h e EKF i s s u c c e s s f u l i n p r o d u c i n g u s a b l e e s t i n a t e s a lthough l i t t l e i s known a b o u t t h e p r o p e r t i e s o f t h e esti m a t e s ( i . e . , s t a b i l i t y , u n b i a s e d n e s s , a n d c o n v e r g e n c e ) t h a t i t o r i t s v a r i a n t s p r o d u c e [ 5 , l l ] . In c o n t r a s t a s p e c i a l c l a s s of n o n l i n e a r e s t i m a t o r s t h a t are similar t o t h a t of t h e EKF, c a l l e d t h e m o d i f i e d g a i n EKF (MGEKF), i s d e s c r i b e d h e r e f o r w h i c h t h e s t a b i l i t y a n al y s i s of j21] i s a p p l i c a b l e . T h i s s p e c i a l c l a s s of nonl i n e a r e s t i m a t o r s was m o t i v a t e d by t h e c l a s s of funct i o n s w h i c h c a n b e m a n i p u l a t e d i n t o a pseudomeasurement f o r m [ 1 , 3 , 1 2 , 1 5 , 2 2 ] . F o r t h e d e t e r m i n i s t i c s y s t e m t h e s e pseudomeasurements a r e l i n e a r f u n c t i o n s o f t h e s t a t e s of t h e s y s t e m a l t h o u g h t h e c o e f f i c i e n t m a t r i x i s a nonl i n e a r f u n c t i o n o f t h e o r i g i n a l m e a s u r e m e n t s . By u s i n g t h e p s e u d o m e a s u r e m e n t s i n a l i n e a r o b s e r v e r s t r u c t u r e [18], g l o b a l s t a b i l i t y c a n b e shown. However, i f t h e pseudomeasurement observer (PMO) i s u s e d i n a n o i s y environment as a pseudomeasurement f i l t e r (PPIF) [ 1 , 3 , 1 2 , 1 5 1 , b i a s e d estimates r e s u l t . In [ 1 8 ] i t i s shown f o r a p a r t i c u l a r e x a m p l e how t h e EKO ( t h e e x t e n d e d K a lman o b s e r v e r ) c a n b e m a n i p u l a t e d i n t o t h e f o r m of t h e PMO. The e s s e n t i a l d i f f e r e n c e l i e s o n l y i n t h e c a l c u l at i o n of t h e o b s e r v e r g a i n s . A m o d i f i c a t i o n o f t h e g a i n s of t h e PMO i s s u g g e s t e d i n [ l a ] w h i c h e n a b l e s t h e EKO t o a c h i e v e p e r f o r m a n c e s i m i l a r t o t h a t o f t h e PNO. T h i s i s c a l l e d t h e m o d i f i e d g a i n...