Camera to be Furnished by Peter Smith, Leader of Mars Pathfinder Camera Team

SpaceDev Inc., the world’s first commercial space exploration and
development company, announced today it has finalized an agreement
whereby the University of Arizona’s Lunar and Planetary Laboratory in
Tucson, Ariz. will furnish to SpaceDev a multi-band imaging camera
designed and built by Peter Smith.

The camera, funded by the University, will be capable of taking
high quality still photographs, and of collecting multi-band
scientific data designed to help scientists understand the composition
of the surface of the planetary body being photographed during
SpaceDev’s deep space mission.

Under a unique and innovative arrangement between SpaceDev and
the University, SpaceDev intends to fly the camera on one of its
planned commercial deep space missions, with the current target being
a near earth asteroid.

Michael J. Drake, director of the University’s Lunar and
Planetary Laboratory (LPL) said of the agreement, “We are excited to
be working with SpaceDev on an innovative mission to a near-Earth
asteroid. LPL is a ‘can do’ academic organization that brought the
world the exciting and unique Mars Pathfinder lander and rover
pictures from the surface of Mars on July 4, 1997. SpaceDev is the
leading commercial company involved in the scientific exploration of
space. The only sector of space activity that has not entered the
commercial sector so far is science. LPL and SpaceDev intend to be the
first partnership to change that fact. A major research university,
working with an innovative private company, can return high quality
science at a fraction of the cost of a government mission. When we
succeed in this venture, we will change forever the way the scientific
exploration of space is carried out. These are exciting times.”

“We are looking forward to working with Mike and his team — they
have world-class people and experience. Peter Smith has a great
reputation for building high quality, lower-cost cameras, and I am
looking forward to collaborating with him on this project and possibly
other related projects in the near future,” said Jim Benson, chairman
and chief executive officer of SpaceDev.

In return for providing a ride for the camera at no charge to the
University of Arizona, SpaceDev will receive exclusive rights to offer
for sale the camera’s photos and scientific data. It is hoped this
revenue will pay for the ride and produce a profit by making the
unique photos available as Internet content, and by providing valuable
scientific data at a cost far less than the cost of data from similar
government missions.

“I believe small, low-cost and fully insured commercial missions
to the inner planets offer the safest and surest means of guaranteeing
that inexpensive, high quality science data will be provided to more
scientists than ever before possible. Insured, fixed-price commercial
science missions to the Moon, Mars and near-earth asteroids, for less
than $30 million, could become an important part of the future for
planetary exploration for NASA and other governments around the
world,” said Benson.

There are over 50 chemically distinct types of asteroids. Less
than 1,000 out of an estimated 100 million near earth asteroids of 10
meters or larger have been discovered. Less than 60 of those have been
analyzed from earth-bound instruments, and only four have been
photographed up close. The University of Arizona camera would
potentially provide unique and valuable scientific information about
these mysterious and largely unknown close neighbors of Earth.

Many near earth objects — asteroids and dormant comets — are
the easiest and least expensive planetary bodies to visit. Scientists
estimate a large percentage of these objects consist of ten percent or
more of water, the most abundant substance in the universe. Water in
space is potentially very valuable because water is the basis of life,
and because it may be the most likely source of concentrated energy in
space. The simple electrolysis of water, using a spacecraft’s solar
array, would produce hydrogen and oxygen, the most chemically powerful
rocket fuel.

About SpaceDev

SpaceDev offers low-cost commercial missions and spacecraft for
lunar orbiters, Mars orbiters and probe carriers, and asteroid
rendezvous and landers for sale as turnkey, fixed price, commercial
products, a first for the space industry. Also a first, SpaceDev
offers fixed-price package delivery for science instruments and
technology demonstrations into earth orbit, deep space and to other
planetary bodies. SpaceDev designs and sells small, low-cost
Earth-orbiting commercial or research satellites. SpaceDev has
recently designed inexpensive orbital transfer vehicles, and secondary
payload micro-kick motors for the Air Force. SpaceDev has acquired
hybrid sounding rocket, motor, and launch vehicle designs, and
intellectual property rights produced by the former American Rocket
Co. (AMROC).

Established in 1997, SpaceDev ( is the world’s
first commercial space exploration and development company. SpaceDev’s
corporate offices are located near San Diego in Poway, Calif. SpaceDev
and The Boeing Co. (NYSE:BAnews), the world’s largest aerospace company,
recently announced that they have teamed together to investigate
opportunities of mutual strategic interest in the commercial
deep-space arena.

Forward-Looking Statements

The foregoing press release includes numerous forward-looking
statements concerning the company’s business and future prospects and
other similar statements that do not concern matters of historical
fact. The federal securities laws provide a limited “safe harbor” for
certain forward-looking statements. Forward-looking statements in this
press release 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 new business ventures including, but not
limited to, market conditions, successful product development and
acceptance, competition and overall economic conditions, as well as
the risk of adverse regulatory actions. The company’s actual results
may differ materially from current expectations. Readers are cautioned
not to put undue reliance on forward-looking statements. 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: SpaceDev Inc.
Jim Benson, 858/375-2020