The Fregat upper stage, developed from flight proven elements - the main engine and the propulsion subsystem were successfully used during numerous interplanetary missions - will be particularly efficient because of its compact configuration, its three-axis attitude control, and its re-ignition capability.

Because of this stage, the Soyuz-Fregat launcher will be one of the most cost efficient solutions for placing satellites in low and medium orbits, in particular, scientific satellites and Earth observation satellites, as well as for interplanetary missions.

The first mission of the Soyuz-Fregat launcher is planned for early next year. The system is able to place a 2.7-tonne satellite into an orbit of 800 kilometers (500 miles), and thanks to an added booster capability in the fourth stage, put a 4.2-tonne satellite into an orbit of 1,400 kilometers (850 miles).

Fregat is part of a system, called Soyuz-Fregat, derived from the veteran Soviet launcher Semyorka, which also comprises a four-motor booster section, a second and a third stage.

The launcher has already been lined up next year to launch four European Space Agency (ESA) satellites, called Cluster 2, that will research the Earth's magnetic field, and to launch a probe, Mars Express, in mid-2003.

Starsem comprises Aerospatiale Matra of France; ESA's marketing arm, Arianespace; the Russian Space Agency and the Samara Space Centre.

AFP wire services contributed to this report.