SpaceDev (OTCBB: SPDV) has contracted The Investor Relations Group (“IRG”) of New York
City to serve as its new financial relations and corporate
communications company.

The Investor Relations Group will strive to increase investor
awareness of SpaceDev within the U.S. market by individually and
personally introducing the Company and its management to pre-qualified
fund managers. IRG will also focus on increasing public awareness of
SpaceDev and its portfolio of products by providing an extensive array
of public relations services including obtaining media placement in
television, radio, magazine, newspaper, and trade media outlets.

In commenting on the new relationship, James Benson, President and
CEO of SpaceDev said, “The Investor Relations Group has an impressive
track record of making introductions for its portfolio companies and
cultivating long-term relationships with premier fund managers. We
feel the time has come to broaden our existing investor base and
increase awareness of our Company by incorporating a more affirmative
outreach program.”

SpaceDev has also reduced its number of board seats to seven
following the resignation of J. Mark Grosvenor, CEO of Grosvenor
Industries, who resigned for personal reasons. Mr. Grosvenor will
continue as an investor in SpaceDev and will provide business and
financial advice to the Company.

“SpaceDev is an exciting company with innovative technology and a
bright future,” said Mr. Grosvenor. “My decision to resign was
prompted by my desire to spend more time with my wife and young
family.”

“Mark’s wisdom, business savvy and financial insight has been
invaluable to the development of SpaceDev,” said Mr. Benson. “We wish
him well in his retirement.”

In the future, all investor and media inquiries relating to
SpaceDev should be directed to The Investor Relations Group, New York,
N.Y., Telephone: 212.825.3210 or Fax: 212.825.3229.

About The Investor Relations Group, Inc.

The Investor Relations Group, Inc., (IRG) founded in 1996,
represents select publicly traded companies and has a unique
specialization for assisting those in the small-cap sector. IRG
arranges one-on-one meetings for its portfolio companies with
pre-qualified money managers handling investment portfolios that range
from $10 million to $10 billion+ selected from its proprietary contact
base of over 27,000 pre-qualified fund managers who have a history of
investing in small-cap stocks. IRG is a full-service corporate
communications company providing press release and shareholder
communications writing and serving as the primary contact for the
investment community on behalf of its portfolio companies. IRG also
houses a full-service public relations arm that specializes in
building awareness of its companies within the financial and trade
media, as well as the public at large.

About SpaceDev

SpaceDev creates and sells affordable and innovative space
products and services to government and commercial enterprises.
SpaceDev’s offering includes 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. For more information, visit www.spacedev.com.

This news release may contain forward-looking statements
concerning the company’s business and future prospects and other
similar statements that do not concern matters of historical fact.
Forward-looking statements relating to product development, business
prospects and development of a commercial market for technological
advances are based on the company’s current expectations. The
company’s current expectations are subject to all of the uncertainties
and risks customarily associated with developing business ventures
including, but not limited to, risks associated with new product
development and availability of raw resources and suppliers, risks to
marketed products and availability of financing and other sources of
income, as well as risks discussed in the company’s periodic reports
filed with the U.S. Securities & Exchange Commission. The company’s
actual results may differ materially from current expectations.
Readers are cautioned not to put undue reliance on forward-looking
statements contained in this release and to read it in conjunction
with the Company’s annual report on Form 10-KSB, including the
consolidated financial statements filed therewith. The company
disclaims any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information,
future events or for any other reason.