The N-Prize is a £9,999.99 (sterling) cash prize which can be claimed by any individual, or group, who are able to prove that they have put into orbit a small satellite. The satellite must weigh between 9.99 and 19.99 grams, and must orbit the Earth at least 9 times. This project must be done within a budget of £999.99 (sterling). For more details about the 'N-Prize' see the N-prize website and discussion group.

The N-prize challenge was put forth by Paul Dear, a biologist at the Medical Research Council Laboratory of Molecular Biology in Cambridge. The "N" stands for "Nanosatellite" or "Negligible Resources", and the purse will be awarded to the first person or group to complete the challenge before 19:19:09 on the 19th September 2011.

Interestingly, Cambridge University already has a group aiming to launch a rocket into space for less than £1000, though the N-prize represents a whole different level of technical difficulty.

UPDATE: To clarify, Cambridge University Spaceflight have not (yet) announced any plans to compete for the N-Prize. They're working independently towards the far more achievable goal of a reusable 100km sounding rocket for less than £1000 a shot. They've already launched rockoons to over 30km, and had interest from the Cambridge Department of Atmospheric Chemistry, and British Antarctic Survey.