In the early 90′s, SEP environment in the satellites business quickly evolved from agencies funded programs (ESA, CNES, government) to a situation in which SEP has numerous private customers and where agencies behave as private companies i.e. opening world-wide competition, requesting high involvement of SEP in non recurring funding. SEP quickly reacted to face this challenge by improving not only their products but also the way these products are developed and produced. A new organization of SEP/DPES unit (around 200 people) was set up end 1994, with project oriented guidelines such as streamlining the hierarchical levels in order to increase personals implication and motivation, favoring flexible project organizations to the previous somewhat rigid matrix organization, enforcing commercial/marketing structure to the new customers. Highly motivated slim teams were constituted around each project, picking up expert partners inside SEP/DPES departments. Project partners proved to plead in an efficient manner with their own management on the behalf of the projects they were implied in. Eventually, this organization helped, of course with other progress actions, to a global performance improvement of SEP/DPES. Improved development processes were put into practice in 1995 among which design to cost, carefully decided internal preliminary studies, long term agreements with preferred subcontractors. SEP/DPES ISO.9001 certification (mid-1998) which gives evidence of the satisfactory status of SEP/DPES PA system already helps to avoid to costly comply with numerous project tailored P.A. requirements. New products were developed/qualified since the mid-90′s, on SEP funding (at least partial, sometimes total), following the here before described processes and organization. Among SEP/DPES newly developed products, three examples are more thoroughly discussed. In the field of electrical propulsion where SEP/DPES has gained expertise in since the 60′s, new developments started in the early 90′s in Hall propulsion through numerous partnership with Russian, American and Italian companies and/or universities. A mature knowledge of Hall thruster functioning and technologies helped SEP to recently complete a successful qualification of their first Hall thruster. “PPS 1350” which will be in flight aboard STENTOR French technological satellite in year 2000. A cost reduction research of this new product was held in parallel to the PPS 1350 qualification, taking into account all the lessons learnt during PPS 1350 development. Its major outputs are the numerous simplifications that were found leading to dramatic cost reductions without impairing thruster performances (reliability was even improved). This improved thruster is today very favorably considered by several primes for small low earth orbit satellites. Hydrazine propulsion is an other example. In this field, which SEP decided in 1996 to accompany their customers in their move from large traditional satellites (SPOT/ERS family) to smaller, cheaper ones. To do so, SEP proposed a monolithic propulsion subsystem (patented design) in which all usual propulsion subsystem assembly devices (piping, supports, brackets…) are avoided, components being directly mounted on the propellant tank. Significant costs reduction could be offered to customers thanks to this innovation. Along with the hydrazine propulsion, SEP also modernised their solar array drive mechanisms the SEPTA's® — SEPTA 31 was qualified end 1998 and will have its maiden flight aboard CNES/ALCATEL JASONI small earth observation satellite. In summary, SEP had to make important changes in order to adapt to the market evolution, which occurred in the early 90's. There efforts implied as well organization as processes as products. First outputs are significant cost reduction; in line will the objectives. First hardware of this new generation will fly in year 2000.