SpaceDev Inc., the world’s first commercial space exploration and development
company, announced today that it has filed a Form 10-SB registration statement with the Securities and Exchange Commission (SEC) to become a fully reporting
company, one of the necessary steps the company must take to advance from the OTC Bulletin Board (OTCBB) to the NASDAQ Small Cap market. The document
was filed on Jan. 18, 2000 and will be appearing on the SEC’s Web site at

Jim Benson, Chairman and CEO of SpaceDev, said, “The filing of our Form 10-SB represents a significant milestone for our company. SpaceDev’s dissemination
of financial information will be easily accessible to our investors and other interested parties and keep them updated with regards to the Company’s financial position
and performance.”

The filing is in response to the new NASD Eligibility Rule for OTCBB companies requiring all companies listed on the OTCBB to effectuate and maintain reporting
company status in accordance with the U.S. Securities Act of 1934. Under the new Eligibility Rule the Company is required to attain reporting company status by
April 2000. The Company anticipates the filing will satisfy the new Eligibility Rule.

As a reporting company, the Company will be required to file annual reports on form 10-KSB, quarterly reports on Form 10-QSB, and reports or unusual events on
Form 8K. The Company will be required to solicit proxies for its annual meeting in accordance to Section 14 of the Securities Exchange Act of 1934 and other
reporting requirements will apply to management shareholdings.

About SpaceDev

SpaceDev offers low cost commercial lunar, Mars and asteroid missions for sale as turnkey commercial products, a first for the 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. The company is currently designing small, inexpensive orbital transfer vehicles (e.g.
satellite inspectors and space tugs), and secondary payload micro-kick motors. SpaceDev has acquired hybrid sounding rocket, motor, and launch vehicle designs,
and intellectual property rights produced by the former American Rocket Company (AMROC).

Established in 1997, SpaceDev ( is the world’s first commercial space exploration and development company. SpaceDev’s corporate offices, its
wholly owned subsidiary Integrated Space Systems (ISS, and the firm’s Space Missions Division are located in Poway.

Forward-Looking Statements

The foregoing news 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 news 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.



James Benson, 858/375-2020


The Financial Relations Board


Mihir Shah (general)

Lisa Mueller/Moira Conlon (investors)

Mary Tokita (media)