SpaceDev Inc., the world’s first publicly-traded commercial space
exploration and development company, Tuesday announced its financial
results for the first quarter of 2001.

For the quarter, the company had a net loss after interest and
other income of $659,000 in 2001, compared to a net loss after
interest and other income of $65,000 for the same period in 2000. The
increase in net loss was due to lower sales volume on the National
Reconnaissance Office (NRO) Office of Space Launch contacts, lower
sales volume on the CHIPSat program and an increase in Research and
Development costs related to the company’s hybrid propulsion product
line.

Sales for the quarter totaled $537,000 million versus $1.1 million
for the same period last year.

For First Quarter 2001, losses before depreciation, amortization,interest and taxes and nonrecurring charges were $354,000 compared to earnings of $226,000 in 2000.

Sales in the First Quarter, 2001 were comprised of $383,000 from
the CHIPSat program, $132,000 for the NRO Office of Space Launch (OSL)
and $22,000 from all other programs. In 2000, there was $540,000 of
sales from CHIPSat, $325,000 from the OSL, $55,000 from Lockheed
Martin and $158,000 from all other programs.

“Last year at this time, the OSL contracts were in an ongoing
phase,” said Charlie Lloyd, chief financial officer. “Although those
OSL contracts are winding down, we have submitted six new proposals
for $400,000 each to the OSL. We believe that the R&D expenditures
made during the first quarter on our orbital Maneuvering and Transfer
Vehicle (MTV) product line could significantly improve our position on
these proposals. The award of any of these will expand and enhance our
hybrid propulsion efforts for the NRO and for our related hybrid-based
products. In addition, the company has won over $1 million in new
contracts this year, and the company has submitted or will submit
another $15 million of proposals within the next several months.”

The company reported a net decrease in cash during the three
months ending March 31, 2001 of $237,000, compared to a net decrease
of $84,000 for the three months ended March 31, 2000. Net cash used by
operating activities totaled ($201,000) for the three months ended
March 31, 2001, a decrease of $426,000 as compared to $225,000
generated by operating activities during the three months ended March
31, 2000. This is attributable primarily to decreased sales volume.

“In addition to obtaining new business, we are making every effort
to raise required equity to build a sound financial base for the
company,” said Lloyd. “This will allow us to continue building the
foundation for a revolutionary new type of commercial space
enterprise, one that is focused on small, low cost mission solutions
and space products for a wide variety of space applications.”

As of March 31, 2001, the company’s backlog of business was
approximately $3.4 million, as opposed to approximately $4.4 million
as of March 31, 2000. To date in 2001, the company has added about
$1.1 million in new business including almost $200,000 in additional
California grant funds.

“I believe we are now well positioned to play a major role in
supplying safe and affordable hybrid rocket motors to those companies
interested in capitalizing on Dennis Tito’s opening of the era of
space tourism for the rest of us,” said Jim Benson, SpaceDev chairman
and CEO. “I believe that it will be small, entrepreneurial companies
building and flying sub-orbital space planes for space tourism and
package delivery, and similar companies building and flying profitable
commercial missions to the moon and Mars that will finally open space
for all of humanity.”

About SpaceDev

SpaceDev (www.spacedev.com) is currently designing inexpensive
hybrid rocket-based orbital maneuvering and orbital transfer vehicles
(MTVs) and secondary payload micro-kick motors for the Air Force.
SpaceDev has recently performed design work for safe hybrid
rocket-based manned or unmanned sub-orbital space planes. SpaceDev
offers fixed-price package delivery for science instruments and
technology demonstrations into earth orbit, to deep space and to other
planetary bodies. SpaceDev designs and sells smaller, low-cost
Earth-orbiting commercial and research satellites. SpaceDev’s sale of
these turnkey, fixed-price, commercial products is a leading
innovation for the space industry.

Established in 1997, SpaceDev’s corporate offices are located near
San Diego in Poway, Calif. SpaceDev and The Boeing Company teamed
earlier to investigate opportunities of mutual strategic interest in
the commercial deep-space arena:
(http://www.spacedev.com/media/pressrelease/1Feb00.html).

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.