This pact will enable Kistler to begin finalization of all necessary permits and licenses needed to start construction in the 1999-2000 timeframe and commence commercial operations at the Nevada Test Site thereafter as planned. "We are exceedingly pleased to have completed this significant milestone," said Dr. George E. Mueller, Kistler's chief executive officer.

"Our goal is to be the lowest-cost, most reliable satellite delivery provider. And through this, to restore the United States' leadership in accessing space."

Ultimately, Kistler's reusable launch vehicle, the Kistler K-1, promises to significantly decrease the cost of launching satellites into low-Earth orbit that in turn will lower the cost to consumers for satellite-based services.

Mueller continued, "We are grateful for the support of Nevada Senator Harry Reid, Governor Bob Miller, the NTS Development Corp., the Department of Energy and all of the government and community supporters that enabled this Subpermit."

Kistler Aerospace is the developer of the K-1 fully reusable aerospace vehicle, designed to deliver satellites to low-Earth orbit and provide a low-cost alternative to single-use launch vehicles. Kistler is a privately funded U.S. company with corporate offices in Kirkland, Wash., and executive offices in Los Angeles.

Kistler Aerospace plans to operate two spaceports simultaneously -- NTS and Woomera, Australia -- to maximize flexibility in scheduling and in the range of launch azimuths that can be flown to meet customer requirements. Another wholly owned subsidiary, Kistler Woomera Pty. Ltd, will own and operate the K-1 vehicle from the Woomera spaceport.