The airplane was a modified Rutan Long-EZ, with the propeller replaced by first one, then later a pair of pressure-fed regeneratively cooled liquid-fueled rocket engines and an underslung fuel tank.
The first flight took place on July 21, 2001, flown by test pilot Dick Rutan.
The vehicle actually flew better during dead stick landings than a standard Long-EZ due to lack of drag from a stationary pusher propeller — the vehicle's aerodynamics were cleaner in spite of its belly tank.
When XCOR began flying its EZ-Rocket in 2001, the company decided to have it FAA certified as an experimental aircraft, avoiding the additional time required to seek a launch vehicle license from the Office of Commercial Space Transportation (AST).
Jeff Greason, a co-founder of XCOR, said on February 10, 2003 if they were starting out at that time they probably would seek an AST license due to the progress made in developing a regulatory regime for suborbitals.