BAUMANETS microsatellite project is currently being carried out by Bauman Moscow State Technical University (BMSTU) in cooperation with Mashinostroenie Production Association. Goal of the project is development and creation of microsatellite with mass of 97 kg, with remote sensing camera and scientific equipment on board. Students have already developed the spacecraft and ground support equipment, conducted research and testing, developed scientific experiments and software. First time in Russia the project of such magnitude is completely implemented by students, with participation of experts from aerospace industry.During the flight of the satellite students will control the spacecraft, operate and maintain mission control center based at BMSTU, will conduct on-board experiments and will process remote sensing data together with domestic and international partners.Results of the project:- Modernization of educational process and laboratory activity by use of satellite experience- Creation of new laboratory at the university- Development of international cooperationProject started in December 2003. Design work ended in May 2004. Final assembly ended in December 2005. Launch is scheduled for March 2006. Life span: 1.5 years.By now, over 100 students have participated in the project. 25 course works and 20 reports at conferences were delivered. 20 reports were printed. Over 20 students graduated from BMSTU and found work in leading Russia s and international aerospace companies. Such real-life projects, which have tangible practical application and including full life-cycle from development, creation, testing and launch to operation and scientific experiments all in cooperation with domestic and international partners, are used to attract interest from students towards aerospace and increase quality of education. Modern information technologies, miniaturization and commercial availability of components, access to affordable communication channels makes implementation of such projects possible even by a single university.Need in such project comes from the fact that currently Russia experiences decline of interest towards aerospace disciplines due to shift of interest to economic, legal, information areas. Due to separation of ties between industry and academia and decrease of number of new projects students are having less opportunities to receive practical experience. Meanwhile, modern labor market in aerospace shows increasing requirements towards quality of university education. This is caused by technological progress in the industry, world globalization and cooperation, increase of share of information technologies in final product and in process of it s creation.