SpaceDev Awarded NASA Contract for New Rocket Program

Development to Broaden Applicability of Hybrid Propulsion

SpaceDev, Inc. announced today that it has been awarded a contract by NASA’s Marshall Space Flight Center for the research and development of its next generation proprietary annular hybrid rocket motors. The contract work will be performed over a six-month period, during which SpaceDev is expected to conduct development testing with the objective of validating performance parameters. This technology could provide significant improvements to hybrid rockets in terms of both performance and packaging efficiency that could significantly broaden their overall applicability and value.

ADVERTISEMENT “We’ve been continuing our development of advanced rocket motors for spacecraft and this is a strong next step in that process. Our cooperation with NASA and specifically with the Marshall Space Flight Center is of major importance to us. Their experience and knowledge will provide considerable added value to the important work being conducted by our propulsion team,” said Mark N. Sirangelo, SpaceDev’s Chairman and Chief Executive Officer. “This technology could allow hybrid rocket motors to establish a presence in areas they have not been historically considered in commercial, civil space and military applications.”

About SpaceDev

SpaceDev, Inc. is a space technology/aerospace company that creates and sells affordable and innovative space products and mission solutions. For more information, visit www.spacedev.com.

This news release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks that are difficult to predict, are based on the Company’s current expectations, and are not guarantees of performance. The Company’s actual results could differ materially from its current expectations. Factors that could contribute to such differences include risks associated with the Company’s ability to effectively manage schedule changes or cancellation of customer orders, control costs and obtain additional financing. The Company also references other factors described in periodic reports filed with the SEC, including its 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. SpaceDev does not intend to update these forward-looking statements.