Joanne Chesimard, a member of the extremist group Black Liberation Army, was convicted of killing a New Jersey state trooper 40 years ago during a routine traffic stop.
She has been on the run since 1979 when she escaped from prison in Clinton, New Jersey, where she was serving a life term for murder.
The state has added its own USD 1 million on top of the million dollars already offered by the FBI for her capture.
At the time, Chesimard was wanted for her involvement in several felonies, including bank robbery. Chesimard and her accomplices opened fire on the troopers.
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"One trooper was wounded and the other was shot and killed execution-style at point-blank range. Chesimard fled the scene, but was subsequently apprehended. One of her accomplices was killed in the shoot-out and the other was also apprehended and remains in jail," the FBI said.
She was sentenced to life in prison.
On November 2, 1979, Chesimard escaped from prison and lived underground before being located to Cuba in 1984.
Among others listed in this most wanted terrorists list include the Tehrik-e-Taliban Pakistan (TTP) leader Hakimullah Mehsud.