SpaceDev, the world’s first publicly traded commercial space
exploration and development company announced it has been awarded a contract
for a proprietary research program valued in excess of $1 million that could
lead to a total value of $2.2 million.
Specific information about this new
work cannot be released at this time.

SpaceDev believes this new contract is indicative of an increased demand
for its technology and expertise in the space industry.
In an effort to meet
that demand, SpaceDev has recently expanded its Board of Directors and focused
SpaceDev’s expertise on developing products to sell into emerging markets.

“Winning this competition is one of the most significant victories in
SpaceDev’s history, and as we complete the various phases of the project we
look forward to announcing the breakthroughs that SpaceDev has been able to
successfully accomplish,” said Jim Benson, SpaceDev’s chairman and CEO.

Since its founding, SpaceDev has positioned itself at the forefront of
this new economic wave — pioneering the Infinite Frontier — and this win
validates the hard work and preparation of SpaceDev’s first years.
remains focused on continuing along a path of strong fundamental growth.
recent contract should result in an increase in revenues in both the fourth
quarter of this year and first quarter of 2002.

“This recent announcement marks yet another step towards SpaceDev’s
successful implementation and execution of its business goals,” stated Charles
Lloyd, COO and CFO of SpaceDev.
“Our recent efforts to generate increased
revenues for the company, while reducing our operating costs, is significant
as we work towards our goal of reaching profitability over the next 12 to
18 months.”

Founded in 1997, SpaceDev is the world’s first commercial space
exploration and development company.
SpaceDev designs, assembles, tests and
markets affordable space systems including sophisticated micro-satellites, and
Orbital Maneuvering and Orbital Transfer Vehicles (MTVs) based on clean, safe
hybrid rocket motors.
SpaceDev is working with Sea Launch to explore offering
low-cost launches for secondary microsat payloads, and has been working with
the NRO and Air Force to develop restartable orbital maneuvering vehicles and
small, affordable kick motors for micro-satellites.
CHIPSat, the first
SpaceDev-built microsat is scheduled to launch by June of 2002.

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
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.

For further information, please contact Elyesse Concepcion of eConcep
Public Relations, +1-949-642-7700, for SpaceDev; or Investor Relations of
SpaceDev, +1-858-375-2062.