Virgin Group Sign Deal with Paul G. Allen's Mojave Aerospace

Virgin Group Sign Deal with Paul G. Allen's Mojave Aerospace

Licensing the Technology To Develop The World's First
Commercial Space Tourism Operator

London, September 27th 2004:

Today, Sir Richard Branson announced that Virgin Group has entered into an
agreement to license the technology to develop the world's first privately
funded spaceships dedicated to carrying commercial passengers on space
flights. The technology is currently owned by a Paul Allen company called
Mojave Aerospace Ventures ('M.A.V.') and was originally developed to fulfil
Paul Allen's vision of building the world's first privately funded, reusable
space vehicle ('SpaceShipOne'), which will undertake its first Ansari X
Prize flight later this week. The licensing deal with M.A.V. could be worth
up to £14 million ($21.5 million) over the next fifteen years depending on
the number of spaceships built by Virgin.

SpaceShipOne, which is solely funded by Paul G. Allen, was designed by
aviation legend Burt Rutan and built by his company, Scaled Composites. On
June 21st Mike Melvill piloted this unique craft to a height of 100 km (62
miles) and into the history books and record books as the world's first
private manned space flight. Separately to Virgin's agreement with M.A.V.,
the company has also signed a Letter of Intent to agree contract terms with
Burt Rutan and Scaled Composites, to utilise the technology in building new
spaceship and derivatives thereof, for the purposes of carrying paying
passengers on a journey to the stars - returning to earth as astronauts two
hours later.

Virgin has formed Virgin Galactic ('V.G.') a new company, which will become
the world's first commercial space tourism operator. It is envisaged that
Virgin Galactic will open for business by the beginning of 2005 and subject
to the necessary safety and regulatory approvals begin operating flights
from 2007. The name was first registered and trade mark protection applied
for in the mid 1990s. It is expected that around £60 million ($100 million)
will be invested in developing the new generation of spaceships and ground
infrastructure required to operate a sub orbital space tourism experience.
Over five years Virgin expects to create around 3000 astronauts and the
price per seat on each flight, which will include at least three days of
pre-flight training, are expected to start at around £115,000 ($190,000).
Virgin will reinvest the proceeds in developing a new generation of vehicles
for further space ventures. To date the cheapest space tourism experiences
in government built and taxpayer funded spaceships cost over $15,000,000 per
seat.

As a prelude to these exciting developments Virgin is also very pleased to
have agreed terms to sponsor SpaceShipOne on its historic Ansari X Prize
flights later this week and in early October.


Commenting on the announcement, Virgin Galactic Founder Sir Richard Branson
said: "We've always had a dream of developing a space tourism business and
Paul Allen's vision, combined with Burt Rutan's technological brilliance,
have brought that dream a step closer to reality. The deals with both their
companies, being announced today, are just the start of what we believe will
be a new era in the history of mankind, making the affordable exploration of
space by human beings real. We hope to create thousands of astronauts over
the next few years and bring alive their dream of seeing the majestic beauty
of our planet from above, the stars in all their glory and the amazing
sensation of weightlessness. The development will also allow every country
in the world to have their own astronauts rather than the privileged few".

Welcoming the deal Paul Allen added: "I backed the development of
SpaceShipOne because I saw this as a great opportunity to demonstrate that
space exploration could someday be within the reach of private citizens.
Today's deal with Virgin represents the next stage in the evolution of the
SpaceShipOne concept, and will likely be the first of a number of deals that
will utilize the technology developed during its creation. I am very happy
to have Virgin and Richard Branson as sponsors of our X-Prize attempt and
excited about space tourism."

Burt Rutan, Founder of Scaled Composites concluded: "Apart from building
SpaceShipOne for Paul and then watching it fly to space on June 21st this is
one of the most exciting days of my life. Our June space flight was flown
with several new technologies that address both the cost and safety of
manned space flight. These, combined with the lessons learned from our
SpaceShipOne research program, will enable us to develop the finest
suborbital operational systems possible. I am looking forward to getting
started on the development program and the opportunity to work with Virgin
on taking Paul Allen's vision to the next stage".

It is expected that Virgin Galactic will formally commence the contractual
and design phase of the project after the conclusion of the Ansari X Prize
flights and start construction of the first spaceship, the 'VSS ENTERPRISE'
in 2005.

This transaction is subject to all necessary government approvals.

- Ends -

About Paul G. Allen:

Founder and Chairman, Vulcan Inc.Investor and philanthropist Paul G. Allen
creates and advances world-class projects and high-impact initiatives that
change and improve the way people live, learn, work and experience the world
through arts, education, entertainment, sports, business and technology. He
co-founded Microsoft with Bill Gates in 1976, remained the company's chief
technologist until he left Microsoft in 1983, and is the founder and
chairman of Vulcan Inc. and chairman of Charter Communications. In addition,
Allen's multibillion dollar investment portfolio includes large stakes in
DreamWorks SKG, Digeo, Oxygen Media, real estate holdings and more than 40
other technology, media and content companies. Allen also owns the Seattle
Seahawks NFL and Portland Trail Blazers NBA franchises. Named one of the top
10 philanthropists in America, Allen gives back to the community through the
Paul G. Allen Family Foundation whose goal is to transform individual lives
and strengthens communities by supporting arts and culture, youth
engagement, community development and social change, and scientific and
technological innovation throughout the Pacific Northwest. Allen is also
founder of Experience Music Project, Seattle's critically-acclaimed
interactive music museum, the Science Fiction Museum and Hall of Fame, and
Vulcan Productions, the independent film production company behind Todd
Haynes' Far From Heaven, the 2001 "Evolution" series on PBS, and last year's
"The Blues," executive produced by Martin Scorsese in conjunction with Allen
and Jody Patton. Learn more about Allen online at www.vulcan.com.

About Virgin:

Virgin, a leading branded venture capital organization, is one of the
world's most recognized and respected brands. Conceived in 1970 by Sir
Richard Branson, the Virgin Group has gone on to grow very successful
businesses in sectors ranging from mobile telephony, to transportation,
travel, financial services, leisure, music, holidays, publishing and
retailing. Virgin has created more than 200 companies worldwide, employing
approximately 35,000 people, in 29 countries. Revenues around the world in
2003 exceeded £4.5 billion (US$7.9 billion).

Contact:

Michael A. Nank
Vulcan Inc.
206.342.2000


Will Whitehorn / Jackie McQuillan
Virgin Group
Tel: 020 7229 4738

Scaled Composites, Mojave, California
+ 1 661 824 4541


--
---------------------------

Jacques :-)

www.spacepatches.info

Sweet.



"Jacques van Oene" wrote in message
...
Virgin Group Sign Deal with Paul G. Allen's Mojave Aerospace

Licensing the Technology To Develop The World's First
Commercial Space Tourism Operator

London, September 27th 2004:

Today, Sir Richard Branson announced that Virgin Group has entered into an
agreement to license the technology to develop the world's first privately
funded spaceships dedicated to carrying commercial passengers on space
flights. The technology is currently owned by a Paul Allen company called
Mojave Aerospace Ventures ('M.A.V.') and was originally developed to
fulfil
Paul Allen's vision of building the world's first privately funded,
reusable
space vehicle ('SpaceShipOne'), which will undertake its first Ansari X
Prize flight later this week. The licensing deal with M.A.V. could be
worth
up to £14 million ($21.5 million) over the next fifteen years depending on
the number of spaceships built by Virgin.

SpaceShipOne, which is solely funded by Paul G. Allen, was designed by
aviation legend Burt Rutan and built by his company, Scaled Composites. On
June 21st Mike Melvill piloted this unique craft to a height of 100 km (62
miles) and into the history books and record books as the world's first
private manned space flight. Separately to Virgin's agreement with M.A.V.,
the company has also signed a Letter of Intent to agree contract terms
with
Burt Rutan and Scaled Composites, to utilise the technology in building
new
spaceship and derivatives thereof, for the purposes of carrying paying
passengers on a journey to the stars - returning to earth as astronauts
two
hours later.

Virgin has formed Virgin Galactic ('V.G.') a new company, which will
become
the world's first commercial space tourism operator. It is envisaged that
Virgin Galactic will open for business by the beginning of 2005 and
subject
to the necessary safety and regulatory approvals begin operating flights
from 2007. The name was first registered and trade mark protection applied
for in the mid 1990s. It is expected that around £60 million ($100
million)
will be invested in developing the new generation of spaceships and ground
infrastructure required to operate a sub orbital space tourism experience.
Over five years Virgin expects to create around 3000 astronauts and the
price per seat on each flight, which will include at least three days of
pre-flight training, are expected to start at around £115,000 ($190,000).
Virgin will reinvest the proceeds in developing a new generation of
vehicles
for further space ventures. To date the cheapest space tourism experiences
in government built and taxpayer funded spaceships cost over $15,000,000
per
seat.

As a prelude to these exciting developments Virgin is also very pleased to
have agreed terms to sponsor SpaceShipOne on its historic Ansari X Prize
flights later this week and in early October.


Commenting on the announcement, Virgin Galactic Founder Sir Richard
Branson
said: "We've always had a dream of developing a space tourism business and
Paul Allen's vision, combined with Burt Rutan's technological brilliance,
have brought that dream a step closer to reality. The deals with both
their
companies, being announced today, are just the start of what we believe
will
be a new era in the history of mankind, making the affordable exploration
of
space by human beings real. We hope to create thousands of astronauts over
the next few years and bring alive their dream of seeing the majestic
beauty
of our planet from above, the stars in all their glory and the amazing
sensation of weightlessness. The development will also allow every country
in the world to have their own astronauts rather than the privileged few".

Welcoming the deal Paul Allen added: "I backed the development of
SpaceShipOne because I saw this as a great opportunity to demonstrate that
space exploration could someday be within the reach of private citizens.
Today's deal with Virgin represents the next stage in the evolution of the
SpaceShipOne concept, and will likely be the first of a number of deals
that
will utilize the technology developed during its creation. I am very happy
to have Virgin and Richard Branson as sponsors of our X-Prize attempt and
excited about space tourism."

Burt Rutan, Founder of Scaled Composites concluded: "Apart from building
SpaceShipOne for Paul and then watching it fly to space on June 21st this
is
one of the most exciting days of my life. Our June space flight was flown
with several new technologies that address both the cost and safety of
manned space flight. These, combined with the lessons learned from our
SpaceShipOne research program, will enable us to develop the finest
suborbital operational systems possible. I am looking forward to getting
started on the development program and the opportunity to work with Virgin
on taking Paul Allen's vision to the next stage".

It is expected that Virgin Galactic will formally commence the contractual
and design phase of the project after the conclusion of the Ansari X Prize
flights and start construction of the first spaceship, the 'VSS
ENTERPRISE'
in 2005.

This transaction is subject to all necessary government approvals.

- Ends -

About Paul G. Allen:

Founder and Chairman, Vulcan Inc.Investor and philanthropist Paul G. Allen
creates and advances world-class projects and high-impact initiatives that
change and improve the way people live, learn, work and experience the
world
through arts, education, entertainment, sports, business and technology.
He
co-founded Microsoft with Bill Gates in 1976, remained the company's chief
technologist until he left Microsoft in 1983, and is the founder and
chairman of Vulcan Inc. and chairman of Charter Communications. In
addition,
Allen's multibillion dollar investment portfolio includes large stakes in
DreamWorks SKG, Digeo, Oxygen Media, real estate holdings and more than 40
other technology, media and content companies. Allen also owns the Seattle
Seahawks NFL and Portland Trail Blazers NBA franchises. Named one of the
top
10 philanthropists in America, Allen gives back to the community through
the
Paul G. Allen Family Foundation whose goal is to transform individual
lives
and strengthens communities by supporting arts and culture, youth
engagement, community development and social change, and scientific and
technological innovation throughout the Pacific Northwest. Allen is also
founder of Experience Music Project, Seattle's critically-acclaimed
interactive music museum, the Science Fiction Museum and Hall of Fame, and
Vulcan Productions, the independent film production company behind Todd
Haynes' Far From Heaven, the 2001 "Evolution" series on PBS, and last
year's
"The Blues," executive produced by Martin Scorsese in conjunction with
Allen
and Jody Patton. Learn more about Allen online at www.vulcan.com.

About Virgin:

Virgin, a leading branded venture capital organization, is one of the
world's most recognized and respected brands. Conceived in 1970 by Sir
Richard Branson, the Virgin Group has gone on to grow very successful
businesses in sectors ranging from mobile telephony, to transportation,
travel, financial services, leisure, music, holidays, publishing and
retailing. Virgin has created more than 200 companies worldwide, employing
approximately 35,000 people, in 29 countries. Revenues around the world in
2003 exceeded £4.5 billion (US$7.9 billion).

Contact:

Michael A. Nank
Vulcan Inc.
206.342.2000


Will Whitehorn / Jackie McQuillan
Virgin Group
Tel: 020 7229 4738

Scaled Composites, Mojave, California
+ 1 661 824 4541


--
---------------------------

Jacques :-)

www.spacepatches.info

Virgin Group Sign Deal with Paul G. Allen's Mojave Aerospace

The interesting thing about this deal is what struck me as a small
dollar amount. Perhaps Allen regards this as (partly) philanthropic,
or that he is taking the long view, and views this craft and deal as
just one step for Mojave Aerospace Ventures. Although I suppose with
some money from Virgin and some from the X Prize, maybe it is closer
to (roughly) breaking even, just with the existing revenue.

I say this based on

The licensing deal with M.A.V. could be worth up to GBP 14 million
($21.5 million) over the next fifteen years depending on the number of
spaceships built by Virgin.

Well, $21 million over fifteen years is more like $10 million in
current dollars (I didn't crunch the numbers, and it depends on an
interest rate guess anyway). The X Prize is $10 million (which they
haven't won yet, but we'll pencil that in for the sake of argument).
Allen's investment was something like $20 million (at least, that's
the number in places like
http://www.spacedaily.com/2004/04062....oxvx7b5u.html ).

In similar news (and more directly relevant to sci.space.station I
suppose), Bigelow has made public a number of aspects of their space
station plans: http://spaceflightnow.com/news/n0409/27bigelow/

Very interesting stuff: at least at the moment, these entrepreneurs
seem to have funding *and* a plausible road to accomplishment
(although I suppose the latter will only be visible with hindsight:
we've seen funded entrepreneurs before, notably Kistler and Beal, both
of whom failed because their market dried up).