SpaceDev, Inc. (OTC BB: SPDV.OB) reported its
financial results for the year ended December 31, 2006.
The Company
recorded its third consecutive year of revenue growth reaching
over $32
million for the year ending 2006. The Company also reported
its third
consecutive year of positive EBITDA.

“The acquisition of the Starsys Research Corporation fundamentally
our profile and has provided us with a substantial manufacturing
which will become critical in the coming years. We have
grown ten-fold
over the past few years through internal growth and acquisition,”
said Mark
N. Sirangelo, SpaceDev’s Chairman of the Board and Chief
Executive Officer.
“We continue to successfully integrate the SpaceDev and
Starsys businesses.
We have also relocated the Starsys operation into a new
facility in Boulder
County, Colorado, which is designed for operating efficiencies
to drive
profitability, as well as provide additional capacity for
our future growth

For the fiscal year ended December 31, 2006, SpaceDev’s
revenue was
approximately $32.6 million, an increase of 250%, compared
to approximately
$9.0 million for 2005. The increase in revenue was due primarily
to the
acquisition of Starsys in January 2006; Starsys generated
revenues from
February 1, 2006 through December 31, 2006 of approximately
$21.4 million,
excluding approximately $300,000 of inter-company sales.

“During 2006, we substantially grew our Company from internal
programs and
through the merger with Starsys,” said Richard B. Slansky,
President and Chief Financial Officer. “We committed our
resources in 2006
to the successful turn-around and growth of the Starsys
operation, which we
acquired on January 31, 2006. The success of our combined
companies will
happen as we continue to generate revenue and execute profitably
existing and new contracts, which we began to do in 2006.
Although we
recorded a net loss for 2006 on a combined basis, it was
substantially less
than pro forma losses in the past two years and illustrates
the turn-around
is well under way, with completion of certain historical
programs that have
hindered Starsys’ past performance. Now, as we move into
2007, we can
focus on profitable program execution and winning new government
commercial contracts.”

Cost of sales was approximately $25.7 million, or 79.0%
of net sales, as
compared to approximately $6.9 million, or 76.7% of net
sales, during the
same period in 2005. Cost of sales consists of direct and
allocated costs
associated with individual contracts. The increase in cost
of sales and the
corresponding decrease in margin were due to losses on certain
fixed price
development contracts. Operating expenses increased from
$1.8 million, or 19.9% of net sales, for the year ended
December 31, 2005
to approximately $7.8 million, or 23.9% of net sales, for
the same twelve
months ended December 31, 2006. The increase was attributed
mainly to the
acquisition of Starsys’ general and administrative costs
and the addition
of key management personnel.

The loss from operations was approximately $953,000 for
the year ended
December 31, 2006, compared to income from operations of
$312,000 for 2005. Net loss for the year ended December
31, 2006 was
approximately $950,000, or ($0.05) per share, compared to
net income of
approximately $501,000, or $0.01 per share, for the same
period in 2005.
During the year ended December 31, 2006, EBITDA was approximately
or 0.5% of revenue, compared to an EBITDA of approximately
$503,000, or
5.6% of revenue, for 2005. EBITDA is a non-GAAP measure
defined as GAAP
net income before net interest income (expense), taxes,
depreciation and
amortization. Not every company calculates EBITDA in the
same way.

Interest expense, including non-cash interest expense, gain
on the Poway
building sale, and stock option expense under FASB 123 (R)
are not included
in SpaceDev’s calculation of EBITDA. The Company may continue
to incur
charges related to stock and stock-based compensation to
employees and
others, as required under FASB 123(R), or non-cash interest
expense related
to the exercise of warrants under previous debt financings,
and will
continue to amortize the gain on the 2003 Poway building

The following table reconciles EBITDA to net income (loss)
for the years
ended December 31, 2006 and 2005:

For the twelve months ended           December 31, 2006  December 31, 2005
                                          (Audited)          (Audited)
                                      -----------------  -----------------
Net Income (Loss)                     $        (952,372) $         501,264
                                      -----------------  -----------------

Interest Income                                 (83,362)          (105,840)
Cash Interest Expense                            65,713              2,873
Non-Cash Interest Expense                       114,600             28,875
Gain on Building Sale                          (117,274)          (117,272)
Stock Option Expense                            133,379                  0
Provision for Income Taxes                       19,290              1,600
Depreciation and Amortization                   982,860            191,924
                                      -----------------  -----------------
EBITDA *                              $         162,834  $         503,424
                                      =================  =================

EBITDA is a non-GAAP financial measure and should not be
considered as an
alternative to net income (as an indicator of operating
performance) or as
an alternative to cash flow (as a measure of liquidity or
ability to
service debt obligations).

Net cash used in operating activities totaled approximately
$2.0 million
for the year ended December 31, 2006, and net cash provided
by operating
activities totaled approximately $397,000 for 2005. The
increase in cash
used for operating activities resulted primarily due to
the need to use
cash resources to pay accounts payable and fund accounts
receivable, which
were assumed upon the acquisition of Starsys.

Year-End Conference Call Details

SpaceDev will host a conference call on April 4, 2007 at
1:00 p.m. EDT to
discuss the year-end results. All those interested in hearing
discussion are invited to join the call by dialing (866)
558-3008 and
entering the PIN 5410 when prompted. A replay of the conference
call will
be available for thirty (30) days through the Investor Relations
section of
SpaceDev’s web site,

For more information on SpaceDev, please review the Company’s
filings on
the SEC EDGAR system at
or at

Non-GAAP Financial Measures

This release contains disclosure of EBITDA, which is a non-GAAP
measure within the meaning of Regulation G promulgated by
the Securities
and Exchange Commission. The definition of EBITDA used to
calculate the
EBITDA figures presented above, while generally consistent
with the most
common definition used by investors and financial analysts,
may not be
comparable to similarly titled measures reported by other
companies. The
Company believes that EBITDA provides an important additional
on its operating results, its ability to service its long-term
its ability to fund continuing growth, and its ability to
continue as a
going concern. The Company’s management regularly evaluates
its progress
based on EBITDA. The Company believes that EBITDA, while
providing useful
information, should not be considered in isolation or as
an alternative to
other financial measures determined under GAAP, such as
net income or loss
(as an indicator of operating performance) or cash flow
(as measure of

About SpaceDev

SpaceDev, Inc. is a space technology/aerospace company that
creates and
sells affordable and innovative space products and mission
solutions. For
more information, visit

Except for factual statements made herein, this news release
consists of
forward-looking statements that involve risks, uncertainties
assumptions that are difficult to predict. Words such as
“intends,” “expects,” “plans,” “anticipates” and variations
identify forward-looking statements, although their absence
does not mean
that a statement is not forward looking. Forward-looking
statements are
based on the Company’s current expectations, and are not
guarantees of
performance. The Company’s actual results could differ materially
from its
current expectations. Factors that could contribute to such
include risks and uncertainties associated with: the Company’s
ability to
effectively integrate acquisitions; rescheduling or cancellation
customer orders; uncertainties in the government budgeting
process; ability
to control costs and expenses; and the possible need for
financing. Reference is also made to other factors described
in the
Company’s periodic reports filed with the SEC, including
the Company’s most
current Annual Report on Form 10-KSB. These forward-looking
speak only as of the date of this release. SpaceDev does
not intend to
update these forward-looking statements.

                                                           SpaceDev, Inc.
                                                         and Subsidiaries

                                              Consolidated Balance Sheets

 December 31,                                       2006          2005
                                                ------------  ------------


 Current Assets
    Cash and cash equivalents                   $  1,438,146  $  5,750,038
    Accounts receivable                            7,289,720     1,279,027
    Inventory                                        309,205        21,340
    Other current assets                             599,565             -
    Note receivable                                        -     1,353,440
                                                ------------  ------------

 Total Current Assets                              9,636,636     8,403,845

 Assets - Net                                      3,793,365     1,073,773

 Intangible Assets                                   841,133             -

 Goodwill                                         11,233,665             -

 Other Assets                                        626,086     1,531,031
                                                ------------  ------------

                                                ------------  ------------
 Total Assets                                   $ 26,130,885  $ 11,008,649
                                                ============  ============

 Liabilities and Stockholders' Equity

 Current Liabilities
    Accounts payable and accrued expenses       $  1,755,985  $  1,237,099
    Current portion of notes payable                       -         9,457
    Current portion of capitalized lease
     obligations                                      35,441         1,469
    Accrued payroll, vacation and related taxes    1,184,457       290,914
    Billings in excess of costs and deferred
     revenue                                       2,816,072       153,440
    Revolving line of credit                         805,172             -
    Other accrued liabilities                      1,602,561       516,380
                                                ------------  ------------
 Total Current Liabilities                         8,199,688     2,208,759

 Notes Payable, Less Current Maturities               50,193             -

 Capitalized Lease Obligations, Less Current
  Maturities                                         136,709             -

 Deferred Gain - Assets held for sale                713,405       830,677

 Other Long Term Liabilities                          15,266             -
                                                ------------  ------------
 Total Liabilities                                 9,115,261     3,039,436

 Commitments and Contingencies

 Stockholders’ Equity
    Convertible preferred stock, $.001 par
     value, 10,000,000 shares authorized, and
     252,963 and 248,460 shares issued and
     outstanding, respectively
    Series C Convertible Preferred Stock                 248           248
    Series D-1 Convertible Preferred Stock                 5             -
    Common stock, $.0001 par value;
     100,000,000 shares authorized, and
     29,550,342 and 24,606,275  shares issued
     and outstanding, respectively                     2,953         2,460
    Additional paid-in capital                    33,150,566    22,541,994
    Accumulated deficit                          (16,138,148)  (14,575,489)
                                                ------------  ------------

 Total Stockholders’ Equity                       17,015,624     7,969,213
                                                ------------  ------------

 Total Liabilities and Stockholders' Equity     $ 26,130,885  $ 11,008,649
                                                ============  ============

Please reference the Company's Form 10-KSB to access the notes which are an
integral part of the consolidated financial statements.

                                                            SpaceDev, Inc.
                                                          and Subsidiaries

                                    Consolidated Statements of Operations

 Years Ended December 31,             2006        %        2005        %
                                  ------------  -----  ------------  -----

 Net Sales                        $ 32,555,570  100.0% $  9,005,011  100.0%
                                  ------------  -----  ------------  -----
 Cost of Sales*                     25,720,581   79.0%    6,905,902   76.7%
                                  ------------  -----  ------------  -----

 Gross Margin                        6,834,989   21.0%    2,099,109   23.3%

 Operating Expenses
    Marketing and sales              2,196,838    6.7%      673,636    7.5%
    Research and development           284,346    0.9%       31,940    0.4%
    General and administrative       5,307,210   16.3%    1,082,033   12.0%
                                  ------------  -----  ------------  -----

 Total Operating Expenses*           7,788,394   23.9%    1,787,609   19.9%

                                  ------------  -----  ------------  -----

 Income/(Loss) from Operations        (953,405)  -2.9%      311,500    3.5%

                                  ------------  -----  ------------  -----

 Non-Operating Income/(Expense)
    Interest and other income           83,362    0.3%      105,840    1.2%
    Interest expense                   (65,713)  -0.2%       (2,873)   0.0%
    Gain on building sale              117,274    0.4%      117,272    1.3%
    Non-Cash loan fee                 (114,600)  -0.4%      (28,875)  -0.3%
                                  ------------  -----  ------------  -----

 Total Non-Operating
  Income/(Expense)                      20,323    0.1%      191,364    2.1%

                                  ------------  -----  ------------  -----

 Income (Loss) Before Income
  Taxes                               (933,082)  -2.9%      502,864    5.6%
 Income tax provision                   19,290    0.1%        1,600    0.0%
                                  ------------  -----  ------------  -----
 Net Income/(Loss)                $   (952,372)  -2.9% $    501,264    5.6%
                                  ============  =====  ============  =====

 Net Income/(Loss)                    (952,372)             501,264
     Less: Preferred Dividend
      Payments                        (610,287)            (170,956)

     Adjusted Net Income (Loss)
      for EPS Calculation           (1,562,659)             330,308

 Net Income/(Loss) Per Share:     $      (0.05)        $       0.01
                                  ------------  -----  ------------  -----

  Weighted-Average Shares Used in
   Calculation                      28,666,059           22,270,997
 Fully Diluted Net Income/(Loss)
  Per Share:                      $      (0.05)        $       0.01
                                  ------------  -----  ------------  -----

  Weighted-Average Shares Used in
   Calculation                      28,666,059           24,606,882

 * The following table shows how the Company's stock option expense would
   be allocated to all expenses.

  Cost of sales                   $     24,339         $          -
  Marketing and sales                    4,840                    -
  Research and development                   -                    -
  General and administrative           104,200                    -
                                  ------------  -----  ------------  -----
                                  $    133,379         $          -
                                  ============  =====  ============  =====

Please reference the Company's Form 10-KSB to access the notes which are an
integral part of the consolidated financial statements.


     SpaceDev Investor Relations
     Investor Contacts:
     Richard Slansky
     Jessica Gerstenkorn
     Media Contact:
     Mark Sirangelo
     (858) 375-2026