EPEO E Prime Aerospace Corporation New (CE)

Item 8.01 Other Events

As stated in a letter dated November 14, 2007, from the Federal Aviation Administration Office of Commercial Space Transportation (FAA/AST), the interagency portion of the policy review associated with application A-07-EPA-121 for E'Prime Aerospace Corporation's canister launch program at Mid-Atlantic Regional Spaceport at Wallops Island, VA has been successfully completed. In completing its review, the FAA/AST has noted that the Departments of Defense, State, and NASA cited no issues, including START Treaty compliance, associated with E'Prime's proposed canister launch program that would adversely impact U.S. National Security or Foreign Policy interests. This determination finally removes all restrictions imposed by the START Treaty based on design parameters to be used in the manufacture of E'Prime's largest motor designated the ESM-9, which was previously prohibited from use by the START Treaty.

Although established in 1987, E'Prime still is a development stage company. E'Prime intends to seek adequate financing, negotiate the sub-agreements for necessary services and launch sites as well as agreements with solid rocket motor manufacturers for the launch vehicles in the Eagle Series and work toward obtaining launch contracts. The commercial launch success of E'Prime is dependent on the occurrence of all these events. There can be no assurance that E'Prime can accomplish its goals or become profitable.