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Source: http://www.haaretz.com/hasen/spages/469959.html
Israeli Defense Official: Arrow Can Intercept Shihab-3
(Jerusalem Post) Amnon Barzilai- The Arrow anti-ballistic missile is capable of intercepting an Iranian Shihab-3 missile, despite its failure to do so in a test Thursday off the California coast, Aryeh Herzog, the Defense Ministry official in charge of the Arrow project, said Friday. The test missile warhead separated from its engine, and the Arrow was able to distinguish between the missile engine and warhead. The intercept failed because of an unidentified malfunction, possibly in the guidance system. (Ha'aretz) According to officials quoted on Israel Radio, the missile acquired its target but failed to detonate it due to the failure of a relatively simple sub-system.