WASHINGTON, July 9 /PRNewswire-FirstCall/ -- E'Prime Aerospace Corporation (Pink Sheets: EPEO) and Space Propulsion Systems, Inc. (SPS) today announce the E'Prime-SPS Strategic Alliance agreement effective June 22, 2007. SPS has developed and patented a new concept for the design and manufacturing of advanced performance solid rocket propellants. This new generation microcellular propellant technology uses the most advanced supercritical fluids based manufacturing methods and should provide significant enhancements to E'Prime's performance, safety and operating costs and introduce new capabilities including allowing design of mission specific propellants. "By applying SPS's advanced propellant technologies to E'Prime Aerospace Corporation's Eagle Series Launch Vehicles, critical enhancement factors are achieved including producing more customer-responsive E'Prime systems than conventional solid propellant technology. Environmental impacts in both the production and use of the propellants should be significantly reduced through applying clean production technologies and designing clean burning solid propellants," said President and Chief Executive Officer (CEO) James D. Oldham, III. E'Prime Aerospace Corporation pursued establishing the E'Prime-SPS Strategic Alliance to refine its launch vehicle motor design, focusing on utilizing the significant performance benefits of the new SPS propellants. "One of E'Prime's major objectives as part of the E'Prime-SPS Strategic Alliance is applying the unique capabilities of the SPS propulsion technology to our launch vehicle designs with the goal of defining a series of tailored propellant standards for each Eagle Series Launch Vehicle which will take into account the specific payload requirements and payload specifications such as target orbit, payload weight and acceptable launch 'G' loading range," Oldham stated. "These new capabilities should provide E'Prime launch service customers the most cost effective match available between the launch system specification and the customer's mission requirements." Additionally, positive performance effects on many aspects of the launch vehicle should be obtained, including decreased vehicle weight, increased thrust/ISP and improved throttle ability (thrust profiling) of the motors. A further significant benefit of using the new SPS propellants will be the potentially significant environmental impact reductions from the exhaust plume characteristics versus that of the original Peacekeeper missile motors. "As a result of these important refinements to the motors using this new propellant, E'Prime will be in a position to file for a new class of motor with the FAA and the Air Force. If successful, this would allow E'Prime to use all of its motor sizes and be totally independent of the START Treaty, thus enhancing our ability to provide our customers with the most reliable and cost effective launch services available worldwide," Oldham said. About E'Prime Aerospace Corporation: Securing unique and proprietary technology derived from the Peacekeeper Missile System, E'Prime Aerospace Corporation obtains a leading industry position implementing the most accurate, efficient, reliable, and cost effective launch programs available worldwide. E'Prime's larger Eagle S-III - Eagle S-VII launch vehicles will lift from 16,925-59,340 lbs. to LEO and from 5,415-19,780 lbs. to GEO. These vehicles will provide a reliable cost- competitive alternative to E'Prime's liquid fueled competitors for these heavier payloads. The Eagle S-VII should prove to be the most powerful launch vehicle in the world, with the capability of launching extremely heavy payloads, such as the International Space Station. About Space Propulsion Systems Inc.: Space Propulsion Systems (http://www.sps.aero/) is a Nevada registered company that specializes in the research and development of patented state-of-the-art manufacturing and chemical process technologies that are both environmentally friendly and cost efficient. These processes are used in the design, development and manufacturing of superior performance products that are critical for achieving significant improvements in commercial and military aerospace operations. Principal among these advanced products are the New Generation rocket, missile and satellite propulsion technologies under development by SPS that are based on the Company's patented Micro-FUEL CELL(TM) (MFC(TM)) propellants concept. E Prime Aerospace Inc., (OTC-Pink: EPEO) - Cautionary Note Regarding Forward-Looking Statements: This press release may contain forward-looking statements within the meaning of the federal securities laws. Such statements are based on current expectations and involve a number of known and unknown risk and uncertainties that could cause E'Prime's future results, performance, or achievements to differ significantly from the results, performance, or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include: combination of additional debt and primarily equity financing and to successfully complete the remaining research and development of its launch technology, determine and implement its overall marketing strategy and establish a viable schedule for the testing and ultimate launchings of commercial payloads, as well as other factors that are discussed in E'Prime's filings with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and E'Prime undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. DATASOURCE: E'Prime Aerospace Corporation CONTACT: Healy Baumgardner of E'Prime Aerospace Corporation, +1-202-441-4734 Web site: http://www.eprimeaerospace.com/ http://www.sps.aero/

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