Ariane 5 becomes the first new-generation heavy-lift launcher to enter commercial service with the successful Flight 119/AR 504 mission. The launcher placed its XMM X -ray observatory satellite into an accurate elliptical orbit.

Arianespace orders 20 Ariane 5 launchers in the P2 production batch, adding to the 14 previously contracted during 1995 for the first production batch.

An agreement officially transferring the management, maintenance and operation of Ariane 5's ELA3 launch facility from the European Space Agency to Arianespace.

The Ariane 5 501 test flight fails.

The ESA Council meets at the ministerial level in Toulouse, France. Go-ahead is given for the Ariane 5 evolution program that will increase the launcher's lift capability to geostationary transfer orbit to 7,400 kg. (16,309 lb.) in a dual- launch configuration by the year 2003. The meeting also approves the ATRA 5 technology program for Ariane 5, as well as the Ariane 5 infrastructure program to maintain and improve production and launch facilities.

First development test of a complete Ariane 5 cryogenic stage.

First test firing of a Vulcain main engine installed on the battleship test stand.

Ariane 5's critical design review completed.

Dynamic testing begins on the main cryogenic stage for Ariane.

The solid propellant production facility for Ariane 5's solid rocket motors opens at the Guiana Space Center.