Kelly Space Wins $1.2 Million NASA Contract.

Business Editors/High-Tech Writers

SAN BERNARDINO, Calif.--(BUSINESS WIRE)--Jan. 7, 2000

Kelly Space & Technology, Inc. has been awarded a $1.2 million contract by the National Aeronautics and Space Administration to continue work on the next phase of a study that is focused on the development of space transportation systems that will serve through the year 2030.

Under the five-month contract, Kelly Space will further refine approaches to meet NASA's future space flight requirements, while emphasizing safety, performance, reliability, and cost savings.

Kelly Space, founded in 1993 by Michael Kelly, Michael Gallo and Karen West, is an innovation-based technology and solutions company that is commercially developing highly reusable space transportation systems.

"The enduring purpose of Kelly Space & Technology is to bring space usefully into the daily lives of ordinary citizens across the world," said Bob Davis, the company's president and CEO. "This contract continues important work that leads to next-generation space transportation systems that are much safer, more reliable, and substantially less expensive to operate than those in use today."

According to Davis, "Accomplishment of these goals will unlock Earth's near orbits, making space a more routinely visited neighborhood in which new markets and industries will flourish."

Kelly Space is known for its patented, commercially-funded, Tow-Launch technology and family of piloted, winged reusable launch vehicles including the Astroliner, and the smaller Express. The company has its headquarters at the San Bernardino International Airport (the former Norton Air Force Base), located about 60 miles east of Los Angeles.

Under this new contract, Kelly Space will provide recommendations to NASA for safe, cost-effective methods in technology investments, program phasing, and sub-scale and full-scale flying demonstrators.

NASA will continue to incorporate Kelly Space's findings into its Integrated Space Transportation Plan. The document is intended to identify and define the agency's five-year investment strategy that will enable a low-risk, highly competitive selection of a new space architecture by 2005.

NASA incorporated Kelly Space's findings from its most recent NASA contract into the plan, which was presented to the Office of Management and Budget in Washington, D.C. in October.

Kelly Space's program manager for NASA's Space Transportation Architecture Study Phase IIIB contract is Jim Hollopeter. He managed the company's STAS I, II and IIIA contracts, totaling $3.3 million.

Kelly Space's STAS team of accomplished individuals and contractors continuing on this contract include: Mike Kelly, the company's Chief Technical Officer and Chairman of the Board; Bill Strobl, a consultant and former General Dynamics executive instrumental in developing the Atlas vehicle family and Advanced Launch Systems; Joe Holland, Ph.D., of Kelly Space, advanced propulsion technology; and Brian Snyder of Kelly Space, avionics and flight software.

Participating companies again include: Andrews Space & Technology, Inc., El Segundo, Calif., system engineering and vehicle design; ECON Inc., Huntington Beach, Calif., economic analysis and cost estimating; MPD, San Diego Calif., systems safety engineering and requirements analysis; and Digital Empire, Riverside, Calif., animation, visualization and communications integration of project deliverables and multimedia presentations.

United Space Alliance of Houston again will provide its reusable launch vehicle operations expertise to the Kelly Space team.

According to Hollopeter, "Kelly Space applauds NASA for the agency's ongoing efforts to further future space transportation by recognizing the contributions of emerging commercial companies such as Kelly Space.

"Kelly Space is continuing the work we started on earlier phases of the project, including the first priority of flight safety," noted Hollopeter. "Kelly Space's approach will satisfy NASA's commitment to safe operations, while meeting the agency's cost, performance, and reliability criteria."

For more information on Kelly Space & Technology, including a view of the company's proposed reusable launch vehicle to meet NASA's future space flight requirements, please see the company's web site at www.kellyspace.com