Jim Benson,
founding Chairman and Chief Executive Officer and Richard Slansky,
President and Chief Financial Officer of SpaceDev , were
honored by the Poway City Council last week for the company’s
participation in the historic SpaceShipOne flight.

On behalf of the City Council, Poway’s Mayor Mickey Cafagna
presented Benson and Slansky with an award for “carrying Poway to the
final frontier,” commemorating SpaceShipOne’s September 29 & October
4, 2004 flights powered by SpaceDev’s innovative, hybrid rocket motor

“These flights have launched mankind into space in the same manner
as the Wright Brothers carried humans to the sky,” the city council
said in their dedication.

About SpaceDev

SpaceDev creates and sells affordable and innovative
space products and solutions to government and commercial enterprises.
SpaceDev’s innovations include the design, manufacture, marketing and
operation of sophisticated micro- and nano- satellites, hybrid
rocket-based orbital Maneuvering and orbital Transfer Vehicles as well
as sub-orbital and orbital hybrid rocket-based propulsion systems for
safe human space flight. For more information, visit www.spacedev.com.

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 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 developing
business ventures outlined in the Company’s periodic reports filed
with the U.S. Securities & Exchange Commission. Readers are cautioned
not to put undue reliance on forward-looking statements contained in
this release and to read it in conjunction with the Company’s annual
report on Form 10-KSB, including the consolidated financial statements
filed therewith. 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.