Andrews Space & Technology announced
today that it was awarded a contract from NASA to study its “Alchemist” propulsion
system technology for use in a space shuttle replacement.

The NASA Research Announcement 8-30 (NRA8-30) contract was awarded under
NASA’s 2 nd Generation Reusable Launch Vehicle (RLV) program, a key part of the
agency’s Space Launch Initiative. The 2 nd Gen program will advance RLV technologies
and reduce commercial investment risk in support of a 2005 decision to proceed into full-scale
development of new privately owned and operated RLV systems.

In the first phase of the two-year multi-phase contract, effective May 18th, Andrews
Space will conduct a feasibility and risk assessment of its “Alchemist” Air Collection and
Enrichment System (ACES). During the second phase, if awarded, Andrews Space would
derive detailed design requirements, establish test objectives, and develop a
comprehensive risk reduction development plan. The total value of the contract is $3
million.

The “Alchemist” ACES is a propulsion system technology that could significantly
decrease the cost of space transportation and open new space-based commercial markets.
Horizontal take-off and landing RLV’s may employ ACES to generate liquid oxygen
rocket propellant from the atmosphere. This allows an RLV to take off and generate
most of its propellant mass while cruising to the launch location, which reduces RLV
size, cost, and improves operational flexibility and safety. These factors are critical to
NASA and its 2nd Generation RLV program.

Jason Andrews, Andrews Space & Technology President, said “We are very excited
to be working with NASA to develop new and innovative propulsion technologies that
could open up the space frontier by reducing costs and improving safety to the point that
everyday people and companies can experience and enjoy the benefits of space.”

Andrews Space & Technology will lead the study effort, which will be conducted by a
team of contractors who are leaders in their respective fields. Pratt & Whitney of West
Palm Beach, Fla., will examine the turbojet and turbopump elements of the ACES.
Creare Inc. of Hanover, NH, will conduct heat exchanger and thermodynamic analyses.
MSE Technology Applications Inc. of Butte, Mont., and Universal Technologies Corp. of
Dayton, Ohio, will investigate and verify air separation technologies. In addition,
Hamilton Sundstrand of Windsor Locks, Conn., ECON Inc. of Houston, Tex., and
Sygenex Inc. of Seattle, Wash., will conduct further analyses to verify the operational
advantages of the Alchemist ACES.

About the Company:

Andrews Space & Technology is a privately-held high technology company that offers
enterprise and product development engineering services; conducts research and
development activities to identify and develop new products for near-term and future
space and technology applications; as well as owns and maintains
SPACEandTECH.COM, a leading provider of on-line space industry news information.

The company recently completed three NASA contracts, including a Phase I SBIR for
the Mini-MagOrion (an extremely efficient high thrust engine for human exploration of
the outer planets of the solar system), the Future Space Transportation Study (a contract
under NASA’s 2nd Generation RLV Program to assess emerging space markets and how
they impact the design of a 2 nd Generation RLV), and a contract to investigate space
transportation options as part of NASA’s Alternate Access to the International Space
Station initiative.

Andrews Space is currently conducting three other contracts, including a NASA Phase
II SBIR for the Mini-MagOrion, a NASA Phase I SBIR to demonstrate proof of principle
for the “Alchemist” ACES, and an architecture trade study for SAIC to develop 3 rd and
4 th Generation space vehicle concepts.

Andrews Space & Technology Inc., founded in July 1999 by Marian Joh and Jason
Andrews, has its corporate headquarters in Seattle, Wash., with offices in El Segundo,
Calif.

More information: www.andrews-space.com.

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Contacts:

Chris Hoeft

Public Relations Coordinator

Andrews Space & Technology

900 First Ave South, Suite 402

Seattle, WA 98134

Tel: (206) 342-9934

Email: choeft@andrews-space.com