The launch of the satellite named 'Omid' was announced by President Mahmoud Ahmadinejad, who said it had been put in the orbit. It was launched with the help of Safir-2 rockets.
"With this launch, the Islamic Republic of Iran has achieved its presence in space," he was quoted as saying by the state television today.
The launch of the satellite coincides with 30th anniversary of the Islamic Revolution and comes as Tehran remains in confrontation with the international community over its nuclear programme.
"On the 30th anniversary of the Islamic revolution and with the order of the president, the national Omid (Hope) satellite was launched," the Fars news agency reported.
"With this launch the Islamic Republic of Iran has officially achieved a presence in space."
The satellite is aimed at determining orbital measurements and will calculate Earth 15 times every 24 hours, the official IRNA reported.
The West, particularly the US suspects Iran of secretly trying to build nuclear weapon and fears the space rocket technology could be diverted into long-range ballistic missile's development, which can carry nuclear warheads.
Iran denies the charges, saying its nuclear programme is for peaceful purposes and that it has the right to the technology already in the hands of many other nations, including its arch-foe the United States.
Iran has pursued a space programme for several years. In October 2005 a Russian-made Iranian satellite named Sina-1 was put into orbit with help of a Russian rocket.
Image: The Safir (ambassador) rocket, which carried Iran's Omid (hope) 2 satellite, is seen at an unknown location in Iran moments before launch in a picture sent to Reuters by Iranian Fars News on February 3.
Photograph: Reuters/Fars News