Phase II Award for the Design, Manufacture and Ground Test of a Prototype Propulsion Module

SpaceDev announced today that it has been awarded a
contract to develop a NASA Space Shuttle-compatible propulsion module for the
Air Force Research Lab (AFRL). Phase II is a continuation of Phase I of the
program SpaceDev secured last year to develop orbit transfer technologies that
meet NASA and Air Force Space Test Program (STP) requirements. The Phase II
award is worth $1.43 million and there is an option for additional work that
is worth $1.01 million. If the option is exercised the total contract value
will be $2.44 million.

Phase II will result in the design, manufacture and test of an innovative
low-cost prototype propulsion module that meets NASA Shuttle Hitchhiker
Experiment Launch System (SHELS) safety requirements and the STP orbit
transfer propulsion performance requirements for secondary payloads. Until
now, no payloads from SHELS (or other Hitchhiker ejection systems) have ever
been offered the opportunity to be boosted to other orbits due to propulsion
technology limitations combined with stringent Space Transportation System
(STS) safety requirements.

In addition to the design and assembly of the propulsion module, SpaceDev
will continue to work in conjunction with an integrated team through AFRL
Space Vehicles Directorate to develop the propulsion module for the Shuttle
Expendable Rocket for Payload Augmentation (SHERPA) transfer vehicle.

“Customers are demanding responsive, affordable access to space. This is
a great project for SpaceDev because it allows us to create yet another
practical and cost-effective space product for government and commercial
customers,” said Jim Benson, chairman and chief executive officer of SpaceDev.
“This project will enable us to have a flight-ready orbital Maneuvering and
Transfer Vehicle (MTV) which combined with our small spacecraft experience
gives us the ability to provide one-stop turnkey payload and/or data delivery
services to target customers.”

The propulsion module that SpaceDev manufactures will use a hybrid rocket
motor consisting of Plexiglas® as the fuel and nitrous oxide (laughing gas)
as the oxidizer. The combination of which is very safe and inexpensive. The
hybrid rocket motor provides restart capabilities and allows for easy
transportation, handling and storage, as well as simplifying integration and
launch.

“Hybrid rockets are safe and non-explosive, and their simplicity of
operation makes them ideal for high-reliability applications such as boosting
a secondary payload on the Shuttle to its desired orbit,” said, Frank Macklin,
chief engineer of hybrid systems for SpaceDev.

Both NASA and the Air Force have important and recurring needs to get
payloads deployed from SHELS to higher altitudes than typical STS orbits. At
the completion of Phase II, SpaceDev intends to serve this need by providing a
low-cost, reliable, and lightweight product that allows for both the
maximization of payload capacity on the Shuttle and the optimization of their
orbit once deployed.

“SpaceDev’s work will open up the door for many Department of Defense
(DOD), NASA and University demonstrations and experiments to ride as secondary
payloads on the Shuttle,” said Jeff Janicik, flight systems director for
SpaceDev. “For many secondary payloads, the Shuttle’s orbit is too low.”

SpaceDev’s previous work for the National Reconnaissance Office (NRO) on
SpaceDev’s Secondary Payload Orbital Transfer Vehicle (SPOTV) and its orbital
Maneuver and Transfer Vehicle (MTV), combined with this new project for the
AFRL, will give SpaceDev additional capabilities in providing a cost-effective
and reliable solution to boosting small spacecraft to their desired orbit.

About SpaceDev

SpaceDev provides affordable and innovative
space products and solutions to government and commercial enterprises.
SpaceDev products and solutions include the design, manufacture, marketing and
operation of sophisticated micro and nano satellites, hybrid rocket-based
orbital maneuvering and orbital transfer vehicles (MTVs) as well as safe
sub-orbital and orbital hybrid rocket-based propulsion systems. SpaceDev has
been awarded contracts from NASA, National Reconnaissance Organization (NRO),
Boeing, Jet Propulsion Laboratory (JPL), California Space Authority (CSA) and
several commercial customers. SpaceDev is also developing commercial hybrid
rocket motors and small high performance space vehicles and subsystems. For
more information, visit www.spacedev.com .

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