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An iterative approach is applied to estimate target location in an ultrawideband multiple-input-multiple-output noise radar system, and the lower bound of its performance is analyzed. The analysis clearly shows that target location estimation accuracy depends on the antenna locations. An approach to efficiently deploy the antennas is proposed. Simulations demonstrate that the root mean square error in target location estimation is inversely proportional to the square root of the product of the number of transmit and receive antennas numbers, and it is able to achieve the derived lower bound at high signal-to-noise ratios.