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EGYPT SIGNS CONTRACT FOR SPY SATELLITE

CAIRO [MENL] -- Egypt has signed a contract for the nation's first spy satellite.

The contract signed on Wednesday calls on the Ukraine to build and launch Egypt's first remote-sensing satellite. Egyptian officials termed the satellite as a civilian project.

No figure was given for the contract. Western defense sources in Cairo said the contract could mark a watershed in Egypt's search for a spy satellite meant to rival the remote-sensing capabilities of neighboring Israel. In December 2,000, Israel launched the Eros A satellite, described as having dual use capabilities.

Egyptian officials said the satellite is called EgyptSat and would be used for development projects and desert exploration. Egyptian Higher Education Minister Mufid Shihab said Egypt seeks what he teremd a peaceful space program that deploys satellite technology.

So far, Egypt has obtained space images from commercial companies, including those in the United States. But Egyptian officials acknowledged that President Hosni Mubarak explored the option of purchasing a spy satellite from Russia during his visit to Moscow in June.

The Egyptian effort, which also included missile purchases from Russia, encountered opposition from the United States. Egypt obtains nearly $2 billion a year in economic and military aid from Washington.

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