SpaceDev (OTCBB: SPDV) has been awarded a $740,000 contract by the Air Force Research
Laboratory (AFRL) to begin development of small satellite bus
technologies with an emphasis on standards and responsiveness to
on-demand needs. This project calls for SpaceDev to provide a
significant departure from the classic space mission paradigm by
designing a system that could be integrated and launched in hours or
days instead of years.

“This is yet another exciting project for SpaceDev because it is
in sync with our dynamic corporate culture of revolutionizing the
space industry, and directly compliments innovative orbit work we are
doing under another government contract,” said Jim Benson, SpaceDev’s
founding chairman and chief executive officer. “We love opportunities
like this, to accelerate changing the way space is done, thereby
moving SpaceDev closer to profitably opening space for all of
humanity.”

SpaceDev’s contract with AFRL calls for the development of a
standardized small spacecraft bus that is modular and provides a
scalable, networked architecture. SpaceDev will define standard
payload and launch vehicle interfaces to enable plug and play of a
variety of payloads to be rapidly launched on a variety of launch
vehicles, on-demand. SpaceDev will extend its success in using TCP/IP
in space, pioneered with SpaceDev’s high performance CHIPSat
microsatellite for NASA. CHIPSat was commissioned, or checked out, in
ten manual steps. SpaceDev will incorporate autonomous satellite
commissioning with the goal of the satellite being fully functional
after only one orbit, or about 90 minutes in space.

The Company recently filed a Form 8-K with the Securities and
Exchange Commission related to this contract award. (See www.sec.gov
for more information.)

About SpaceDev

SpaceDev (OTCBB: SPDV) 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 (MoTVs)
as well as sub-orbital and orbital hybrid rocket-based propulsion
systems for safe human space flight. 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 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. 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.

Contact:

The Investor Relations Group

Investor Contact:

Kathryn McNeil, 212-825-3210
or
Dian Griesel, 212-825-3210
or

Media Contact:

Mike Graff, 212-825-3210
or
Stephanie Schroeder, 212-825-3210