SpaceDev Appoints New Chief Executive Officer and Vice Chairman

Benson Remains as Chairman, Becomes Chief Technology Officer

Slansky Renews as President and Chief Financial Officer

SpaceDev has appointed Mark Sirangelo as Chief Executive Officer and Vice Chairman of the Board. Jim Benson, SpaceDev’s Founder will retain his position as Chairman of the Board and will become Chief Technology Officer. Richard Slansky remains as President and Chief Financial Officer.

Mr. Sirangelo’s most recent position has been as the chief executive officer of the QuanStar Group, LLC, an active strategic and business advisory company which has extensive experience as one of the foremost developers of early-stage companies. Mr. Sirangelo actively participated as an advisor, principal or executive for a number of companies in aerospace, technical, scientific and other related industries. In this capacity, Mr. Sirangelo has, for the past year, been working closely with SpaceDev’s board and management regarding the Company’s strategy development and business planning. He has also, in his career, been a key figure in helping to pioneer efficient and productive methods of advanced technology commercialization transfer from university and government laboratories. Previously, Mr. Sirangelo served as a senior officer of Natexis Bleichroeder, Inc., an international investment banking firm, focusing on the technology, security and defense sectors. Among his earlier work experiences, he was the principal founder, Chairman and CEO of Production Group International, Inc., an advanced communications company.

“Mark has been an invaluable guide to us during this past year, and I have enjoyed working with him. With our pending acquisition of Starsys and exciting new business development opportunities, SpaceDev is in the process of aggressively moving up a level in size and capabilities. We now need to elevate the capabilities of our top management team, and I believe Mark is the right person to help us take SpaceDev to that new level of capability. Now that Mark has agreed to join us as our CEO, we expect his understanding of rapid business development to greatly enhance the speed at which we can fulfill the needs of the growing markets for our products,” said Jim Benson, SpaceDev’s Founder and former CEO.

“As the founder of this company it is extremely rewarding to see SpaceDev attain this level of success. I remain rock-solid in my belief that profitable commercial space businesses require only vision, commitment and hard work to realize. My family and I who initially invested in SpaceDev enthusiastically retain our stock positions and we remain in a position to ensure that the strategic development of the company continues our revolutionary “skunk works” type of corporate culture. It is critical that we protect and expand this culture which is at the root of an unbroken string of SpaceDev technical and financial successes. As CTO I am looking forward to spending more time in top level new business development, evangelizing the role and great potential of SpaceDev, and directing our new internal R&D program that is designed to anticipate space technology developments. Our goal is nothing less than the profitable implementation of the ‘Space Technology Development Roadmap’ described on our website at www.SpaceDev.com.”

In commenting on his new role, Sirangelo said, “SpaceDev is a unique company on the forefront of making commercial access to space a reality in our lifetime. It has been an invigorating experience to work with Jim and Richard, as well as the rest of the talented team at SpaceDev as a consultant, and I now look forward to taking a more active role as we pursue our growth plan, which includes the announced merger with Starsys.”

Additional Information and Where to Find It

SpaceDev has filed a Form 8-K related to this and other events earlier today. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC at the SEC’s web site at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by SpaceDev by contacting SpaceDev Investor Relations at (858) 375-2026.

About SpaceDev

SpaceDev (OTCBB: SPDV – News) is a high tech space development company that creates and sells affordable and innovative space products and solutions to government and commercial enterprises. SpaceDev’s innovations include the design, manufacture, marketing and operation of sophisticated micro- and nano-satellites. SpaceDev designs and builds safe hybrid rocket motor propulsion systems for sub-orbital and orbital transportation systems for cargo and for human space flight. Upon founding SpaceDev in 1997, Jim Benson started the trend of successful computer entrepreneurs moving into the space development arena. For more information, visit www.spacedev.com.

Except for the factual statements made herein, the information contained in this news release consists of forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism and satisfaction with current prospects, as well as words such as “believe,” “intends,” “expects,” “plans,” “anticipates” and variations thereof, identify forward-looking statements, although their absence does not mean that a statement is not forward looking. Forward-looking statements are based on the Company’s current expectations. Such forward-looking statements are not guarantees of performance, and the Company’s actual results could differ materially from the Company’s current expectations based on many factors that are directly or indirectly related to the items discussed above. Factors directly related to the subject of this release that could cause or contribute to such differences include risks and uncertainties associated with rescheduling or cancellation of customer orders or government contracts; unforeseen development challenges and delays; and, the Company’s ability to control costs and expenses. Reference is also made to other factors set forth in the Company’s periodic reports filed with the Securities and Exchange Commission, including “Management’s Discussion and Analysis” and other sections of the Company’s most current Annual Report on Form 10-KSB and subsequent Quarterly Reports on Form 10-QSB. These forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release.

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Investor Contact:

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Mike Graff
212-825-3210