Hybrid Motor Regression Tests Augment National Reconnaissance Office-Funded Project

SpaceDev, Inc., the world’s first commercial space exploration and
development company, announced today it has been informed by the
California Space and Technology Alliance (CSTA) that the company has
been competitively selected to receive a grant to perform test firings
of SpaceDev’s hybrid rocket motors, which are designed to power
SpaceDev’s Orbital Transfer Vehicle.

In 1999, SpaceDev began working on conceptual and preliminary
designs of an inexpensive space vehicle that would be capable of
boosting secondary payloads into longer-life orbits, and that could
maneuver on-orbit for such possibilities as satellite inspection,
rendezvous, docking and moving, and refueling. The National
Reconnaissance Office (NRO) awarded SpaceDev funds to further develop
SpaceDev concepts for an Orbital Transfer Vehicle. Work on the NRO
project was completed this March.

Commenting on the grant, Charlie Lloyd, CEO of SpaceDev’s ISS
subsidiary said, “We appreciate the State of California supporting
this technology. This grant helps confirm SpaceDev’s corporate
direction and the value of our commercial space products as we move
forward to market these innovative new technologies to our diverse
customer base.”

SpaceDev’s unique and low-cost design includes motor fuel that is
solid, inert and safe, and oxidizer that is gaseous and
self-pressurizing at room temperature. This elegantly simple design
results in only one moving part, a valve, and supports a major mission
benefit the OTV, which is long-term storability, on the ground and
on-orbit. The OTV is restartable, throttleable, and relatively
clean-burning because its fuel and oxidizer are based primarily on
hydrocarbons, nitrogen and oxygen. Current versions are designed to
fit on commercial launch vehicles that inexpensively carry small
secondary spacecraft to earth orbit. The smallest SpaceDev OTV weighs
25 kg. and the largest 100 kg. OTV-compatible launch vehicles include
the Ariane 4 and 5, the Boeing Delta II, the Orbital
Sciences Corporation Pegasus, and the Shuttle Hitchhiker
and SHELS payload areas.

Frank Macklin, SpaceDev’s Director of Engineer for the hybrid
technology work said, “We are thrilled with this CSTA award because it
comes at a great time for SpaceDev. With the encouragement of the NRO,
we have submitted multiple additional proposals for significant
follow-on Orbital Transfer Vehicle (OTV) work, and the CSTA grant
fills the gap and helps us maintain important momentum with this
innovative new space product. We were confident that our strategy of
acquiring the patent and intellectual rights to the AMROC hybrid motor
technology would pay off — it just needed a jump-start to show that
test results will clearly demonstrate the benefits of this promising
technology — and now we’re ready to start assembly of our motors.”

CSTA, California’s Spaceport Authority, announced the decisions
made by Lon Hatamiya, secretary of the California Trade and Commerce
Agency. Speaking of the award to SpaceDev, CSTA executive director
Andrea Seastrand said, “This year’s increased number of grant
applications is a reflection of the growing interest in and
participation of California companies in the expanding international
space marketplace.” SpaceDev was one of nine grantees out of
33 applicants.

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
Company (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. SpaceDev and
The Boeing Company, 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. 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