VIRGIN GALACTIC SIGN HISTORIC SPACEPORT AMERICA LEASE AGREEMENT The signing of the lease agreement comes just days after the Federal Aviation Administration issued a launch license to the New Mexico Spaceport Authority. The lease agreement with an anchor tenant was the final requirement set by the New Mexico Legislature to release the next level of funding for Spaceport America and it has cleared the way for construction to begin early this year. "This is a historic moment for New Mexico, Spaceport America and Virgin Galactic. A lot of very dedicated people have been working long hours to secure this lease agreement," said Spaceport America Executive Director Steven Landeene. "Like several other companies, Virgin Galactic has realized the outstanding advantages offered by Spaceport America and the State of New Mexico." The signing of the lease agreement coincides with the beginning of the test flying program for Virgin Galactic's VMS Eve launch vehicle which got underway this month in Mojave, CA. The VMS Eve will serve as the mother ship for SS2, the vehicle that will carry commercial astronauts into sub-orbital space from Spaceport America. "We are really looking forward to making Spaceport America and New Mexico the home and worldwide headquarters of Virgin Galactic," said Jonathan Firth, Virgin Galactic Projects & Operations Director. "The State has all the right elements for a successful commercial space operation including good weather, clear airspace, beautiful scenery, great people and a fantastic location and design for Spaceport America." This month the New Mexico Spaceport Authority selected Gerald Martin Construction Management of Albuquerque to oversee construction of Spaceport America. The architectural partnership of URS/Foster + Partners is completing the final design for the terminal and hangar facility. Construction will begin early this year with the terminal and hangar facility scheduled for completion in 2010. Road construction to Spaceport America is already underway. Southern New Mexico's Spaceport America is positioned to become the nation's leading commercial spaceport facility. There have been several commercial launches for various clients from the site since April 2007, with more launches planned. In addition to Virgin Galactic, the Spaceport Authority has been working closely with other aerospace firms such as Lockheed Martin, Rocket Racing Inc./Armadillo Aerospace, UP Aerospace, Microgravity Enterprises and Payload Specialties. For more information and to register your interest in flying with us, or just for updates on progress, you can visit the website at www.virgingalactic.com.