"The Payam satellite was successfully launched this morning with the Safir satellite carrier," Mohammad Javad Azari Jahromi told state television.
"But the satellite unfortunately failed to be placed in orbit in the final stage."
The Payam (Message in Persian) and its launch vehicle had gone through successful testing of its first and second stages, the minister said.
But in the actual launch, the satellite failed to reach the required speed on detachment from the rocket in the third stage.