Press Release

SpaceDev, Inc., NASA Commercial Orbital Transportation Services Competition Finalist, Applauds Two Winners

By SpaceRef Editor
August 20, 2006
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After months of deliberation, NASA has announced two winners in their Commercial Orbital Transportation Services (COTS) competition, a contest created to stimulate commercial cargo delivery and crew transportation to the International Space Station. Eight months ago, over twenty-five teams began the competition. Two months ago, the SpaceDev Team was chosen as one of the six finalists in the competition. Now that NASA has made its decision, SpaceDev joins the space community in congratulating the competition final winners and wishes them the best on their efforts and endeavors in this program.

“Although SpaceDev was not chosen, I am extremely proud of our team and what we were able to accomplish throughout this process. I would like to thank all who supported us throughout the competition,” said Mark N. Sirangelo, SpaceDev’s Vice Chairman and Chief Executive Officer. “It has been an honor to contribute to this bold and innovative NASA initiative. Through the competition we have had the opportunity to deepen relationships with our industry partners and to further refine our Dream Chaser space program, lifting body and hybrid propulsion technologies. We will continue to look for other avenues to develop these technologies and further our capability to advance commercial space transportation.”

Sirangelo added, “This process has broadened our longstanding relationship with NASA and we appreciate having had the opportunity to participate in such a competition. We fully recognize the significance of being named one of the six finalists, and look forward to future opportunities to demonstrate our innovative business model and practical technologies to NASA and to the commercial spaceflight industry as a whole. Michael Griffin, Scott Horowitz and all at NASA have our thanks and deserve credit for having the courage to establish this type of program. We hope that it is an example of similar programs to come.”

About SpaceDev

SpaceDev 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, hybrid rocket-based orbital Maneuvering and orbital Transfer Vehicles as well as sub-orbital and orbital hybrid rocket-based propulsion systems for safe human space flight. In addition, Starsys, Inc., a wholly-owned subsidiary of SpaceDev, is engaged in the design and manufacture of mechanical and electromechanical subsystems and components for spacecraft. Starsys’ subsystems enable critical spacecraft functions such as pointing solar arrays and communication antennas and restraining, deploying and actuating of moving spacecraft components. For more information, visit www.spacedev.com.

Forward-Looking Statements

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 (i) the Company’s ability to effectively perform under its many government contracts, (ii) any rescheduling or cancellation of the Missile Defense Agency contract or any other customer order, including the size and timing of Task Orders delivered, (iii) the uncertainties in the government budgeting process, (iv) the Company’s ability to control costs and expenses, and (v) the need for additional financing to support the business. 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.

Contact:

The Investor Relations Group

Investors:

Dian Griesel/Tom Caden/Erika Moran, 212-825-3210

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Media:

Mike Graff, 212-825-3210

SpaceRef staff editor.