Culminating more than a year of obtaining environmental, regulatory and permitting authorizations, Spaceport Woomera, a wholly owned subsidiary of Kistler Aerospace Corp., is set to begin construction of the world's first fully operational commercial spaceport at Woomera in South Australia, following a major ground-breaking event.

The spaceport, which will incorporate the world's most advanced

technology, will provide the operational base for the launch of the

world's first fully reusable launch vehicle, the Kistler K-1.

The multimillion-dollar spaceport is due for completion in the

fourth quarter of this year, with test flights of the vehicle

scheduled for late 1998. The first commercial payload is expected to

be launched next year.

"This is a very special day for Kistler and all of the key

stakeholders involved with the Woomera spaceport, including the

Commonwealth government, the South Australian government, regulatory

bodies, government agencies and local Aboriginal groups," said Robert

Wang, chairman of Kistler Aerospace.

"Kistler has made very significant strides in the last six months

in accomplishing many milestones. However, this ceremony signifies a

very important transition for us. Moving this project from concept to

construction in such a short time is a testament to our business

capabilities and our commitment to become the world's first fully

reusable launch provider."

As a reusable vehicle, the Kistler K-1 promises to significantly

decrease the cost of launching satellites into low Earth orbit. These

benefits are expected to be passed on to consumers in the form of

reduced costs for communications and satellite-based services.

"Kistler plans to lead the world's commercial space revolution to

a level comparable with commercial aviation," said Wang. "Satellite

communications permit faster and increased access to global

information, more effective connections for commerce, and enhanced

communication links between countries and people."

Kistler hopes to begin construction on its second spaceport site,

in Nevada, in the 1999-2000 time frame. The company plans to operate

the two spaceports simultaneously to allow greater flexibility in

scheduling and in the range of launch azimuths that can be flown to

meet customer requirements.

In achieving this milestone, Kistler worked in cooperation with

the minister for industry, science and tourism, John Moore; the

minister for defense, Ian McLachlan; the premier of South

Australia, John Olsen; and various government agencies to obtain

all the necessary environmental, regulatory and permit authorizations.

"The planning and approval of this facility has come together

through superb government and industry cooperation," said Wang.

"Environmental, regulatory and negotiation issues relating to native

title claims have all been harmonious. We look forward to a continued

successful relationship with the Commonwealth government, the South

Australian government and Aboriginal groups."

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.

Another wholly owned subsidiary, Kistler Woomera Pty. Ltd., will

own and operate the K-1 vehicle from the Woomera spaceport.

Kistler