Vice President of Product Development and Marketing And Vice President of Operations

today announced the hiring of two new senior-level
employees. Stuart E. Schaffer takes the position of vice president of product
development and marketing and Emery E. Skarupa the position of vice president
of operations.

Schaffer brings nearly two decades of sales and marketing experience to
the table, boasting a track record of proven success at companies such as
Infocus Corporation and Hewlett-Packard Company

“Stuart has the exact skill set and range of experience we sought,” notes
Jim Benson, chairman and chief executive officer of SpaceDev. “He’s highly
experienced in all critical phases of innovative new product development,
product marketing and launching new categories.”

Schaffer will focus both on marketing our existing small and affordable
space products and solutions to government and commercial enterprises as well
as a strategic roadmap of new affordable high performance space products into
the future. He cites the company’s remarkable reputation as an affordable
space products and solutions provider as the key to expanding the customer

“SpaceDev is developing miniaturized sub-systems, multiple mission
satellites and hybrid propulsion systems inexpensively by using proven
less-expensive off-the shelf components and our internal experience and
knowledge,” said Schaffer. “I’m eager to get that message out to prospective

Skarupa brings more than a decade of senior-level executive leadership in
all aspects of materials, purchasing and manufacturing elements of operations.
Skarupa most recently served as senior vice president and general manager of
Anacomp Corporation, a $450M document imaging equipment and services provider.
During his tenure at Anacomp, he decreased inventories by 50% and fostered the
development of a new service offering that resulted in revenues of $11 million
within 18 months of deployment.

“Skarupa’s experience will prove invaluable as we move forward,” said Jim
Benson, chairman and chief executive officer of SpaceDev. “He will be
responsible for managing all aspects of engineering, manufacturing and quality
standards for the Company, including short and long-term planning, supply
chains, program management and assistance with product development and
financial planning.”

“I look forward to the challenge of managing operations and manufacturing
for a company as unique and pioneering as SpaceDev,” said Skarupa. “I’m
fortunate to be working with an extremely talented group of engineers and I’m
excited about our prospects in developing and delivering affordable space
products and solutions.”

“The appointments of Stuart and Emery have allowed us to build the
foundation of a knowledgeable and highly capable executive management team,”
said Jim Benson chairman and chief executive officer. “They bring the
combination of talent and experience SpaceDev needs to achieve our growth
projections in the coming years.”

About SpaceDev

SpaceDev creates and sells 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, NASA’s Jet Propulsion Laboratory (JPL), California
Space Authority (CSA) and commercial customers. SpaceDev is also developing
commercial hybrid rocket motors and small high performance space vehicles and
subsystems. For more information, visit .

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 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.