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The first European remote sensing satellite ERS-1 will be launched by the European Space Agency (ESA) in 1989. The expected lifetime is two to three years. The spacecraft sensors will primarily support ocean investigations and to a limited extent also land applications. Prime sensor is the Active Microwave Instrumentation (AMI) operating in C-Band either as Synthetic Aperture Radar (SAR) or as Wave-Scatterometer and simultaneously as Wind-Scatterometer. In Europe there will be two distinct types of processing for ERS-1 SAR data, Fast Delivery Processing and Precision Processing. Fast Delivery Proceessing will be carried out at the ground stations and up to three Fast Delivery products per pass will be delivered to end users via satellite within three hours after data acquisition. Precision Processing will be carried out in delayed time and products will not be generated until several days or weeks after data acquisition. However, a wide range of products will be generated by several Processing and Archiving Facilities (PAF) in a joint effort coordinated by ESA. The German Remote Sensing Data Center (Deutsches Fernerkundungsdatenzentrum DFD) will develop and operate one of these facilities. The related activities include the acquisition, processing and evaluation of such data for scientific, public and commercial users. Based on this experience the German Remote Sensing Data Center is presently performing a Phase-B study regarding the development of a SAR processor for ERS-1. The conceptual design of this processing facility is briefly outlined.