The ILSE laboratory satellite model was the first step of the Small Satellite Program at the University of Stuttgart. ILSE's first hardware was designed by three graduate students: A cubical laboratory satellite, named ILSE, with an edge length of about 50 cm was developed for testing purposes. ILSE is a full working model with similar functionality as the future flying prototype. To allow a development timeframe of less than one year, mostly standard commercial off-the-shelf components (i.e. non-space-qualified parts) are used. Since the laboratory satellite needs to be fully autonomous and without any external connection it has to contain its own power source. The power source consists of three solar panels of which two are deployable. 

Furthermore the satellite is equipped with three video cameras (visible, NIR and TIR) and a high resolution digital CCD photo camera for Earth Observation. ILSE is controlled from its on-board computer and communicates with the ground via a telemetry and telecommand radio link. For acquisition of image sequences the video signal can be recorded. The transmission is conducted with the ground station via a separate high bandwidth analog radio link.To simulate target pointing and attitude movement in general, ILSE is capable of being fully rotated around the azimuth axis and up to ±30° in elevational direction.

The laboratory satellite ILSE was completed in Sept. 2003 and was demonstrated during the 54th IAF Congress in Bremen showing full functionality.