Message from Mark Bundick, NAR President

Joint Statement on BATF Litigation - December 22, 2004

This message will outline the results of the December 17, 2004 hearing in U. S. District Court in Washington, DC, before Judge Reggie Walton and next steps in our legal effort to remove unnecessary and illegal regulation of the sport rocketry hobby.

NAR and TRA won both pending motions before the court.

Winning these motions are important for us because we can now move forward on two key items.

Granting the first motion means we can now legally challenge the illegally
promulgated "Questions and Answers Hobby Rocket Motors" document at the ATF Explosives website within the current litigation.

Granting the second motion for final judgment under Rule 54(b) means we can proceed with an appeal of Count 1 of the lawsuit. Count 1 argued that APCP does not function by explosion and is therefore not subject to BATFE

regulation. A ruling from an appellate court on our appeal will determine
a key point -- whether the ATF even has jurisdiction to regulate the hobby
at all.

We intend to file an appeal immediately after the judge releases his
written order granting our motion.

The next scheduled event will be another status hearing, January 28,
2005. BATFE has until that time to respond to our amended complaint. Upon
reviewing that filing, counsel will have an opportunity to respond, most
likely with a motion for summary judgment to attempt to get the court to
set aside the "Questions and Answers" document.

Members may obtain a copy of Judge Walton's orders from our websites; we
expect to have those documents available in the next few days.

We need your continued strong financial support for the legal work
necessary around these two wins.

The appeal preparation and filing will cost a minimum of $25,000. We
estimate the total costs of remaining legal work on both the litigation and
appeal will take approximately $100,000 over the next two years.

Please donate today in whatever amount you possibly can. And thanks for
your assistance to date.

Also, we again strongly recommend that members in the field report in
detail any actions taking by ATF personnel in the field, particularly if
they use the ATF's "Questions and Answers" as the basis for their action.

Forward to either of us the dates, times, names and offices involved, along
with a complete description of your experience. Be factual and complete in
your message. If we need additional information, we'll contact members
individually.

Secondly, we again urge members to consider donating to the Legal
Fund. Please make a donation to the Legal Defense Fund today, in whatever
amount you possibly can contribute. Your support and generosity will be
recognized and acknowledged, and you'll be able to say "I supported the
fight for an unregulated sport rocket hobby." You can make donations
securely online at:

https://secure.consumersinterest.com/nar/NARfrompres9911.html#donorform

As we have further developments, we'll continue to report them here and in
our publications.

Mark Bundick, President
National Association of Rocketry

Ken Good, President
Tripoli Rocketry Association