SpaceDev Inc. (OTCBB: SPDV), the world’s first publicly-traded commercial space exploration and development company today announced that its new subsidiary, SpaceDev Australia, has lodged a prospectus with the Australia Securities & Investments Commission for a maximum of $8 million (AU)—about $4.6 million (US). The SpaceDev Australia offering will not be available to U.S. investors.

The SpaceDev subsidiary has allied with the newly formed Space Projects Australia, which will
share in the offering proceeds. After fees and splitting the gross proceeds, SpaceDev expects to
net up to an estimated $2.6 million (US), based on current exchange rates.

SpaceDev intends to use part of its share of the proceeds to open the SpaceDev Australia office
in Sydney, Australia as a base to expand its sales and marketing efforts in Australia and
throughout the Asian region. SpaceDev intends to partner with one or more established Australian
space companies for microsatellite assembly and testing activities using SpaceDev micro-satellite
designs and subsystems, and to initiate an intern program to identify outstanding Australian space
engineering students as potential future employees. SpaceDev satellite subsystem products
include an innovative miniature S-band transponder weighing about one pound (0.5 kg) and a
small, low power, high-speed space-qualified single board computer based on the Motorola MPC
750 processor.

Additional uses of the proceeds include international sales and marketing related to the proposed
commercial lunar mission that grew out of the collaboration between SpaceDev and Boeing last
year, additional design and analysis on SpaceDev hybrid rocket motors targeted for potential use
in manned sub-orbital space tourism and package delivery applications, and a significant
expansion of SpaceDev’s general domestic sales, marketing and lobbying capabilities. The lunar
orbiter, supported by corporate sponsors, would feature a live, real time stream of unique HDTV
views of the moon’s surface beamed back for TV, cable, Internet and Pay per View packaging.

“This offering is intended to provide SpaceDev with new working capital with minimal dilution of
current SPDV shareholders,” said SpaceDev CFO Charlie Lloyd. SPDV issued 889,000 shares of
SPDV common stock to SpaceDev Australia as part of its initial funding. Mr. Lloyd went on to
explain that, “The deal calls for SpaceDev Australia to distribute the SPDV shares as an
immediate dividend to the Australian investors, who will receive one share of SpaceDev stock for
every ten shares of SpaceDev Australia purchased as part of a basket of investor benefits. In
addition, SpaceDev Australia and Space Projects Australia are required to distribute twenty
percent of net operating profits after taxes as periodic cash dividends to the shareholders of
SpaceDev Australia.”

As a result of the initial funding of SpaceDev Australia, SpaceDev issued SPDV stock at an
equivalent of approximately $2.15 (US) per share. SPDV closed at $0.875 the day before
lodgment of the offering. All shares issued by SpaceDev to SpaceDev Australia were issued
pursuant to Regulation S.

“SpaceDev has a fifteen year vision to help make space happen, and this is another important
step in that direction. We think this is a great deal for all parties. SpaceDev gets a relatively
inexpensive infusion of working capital for an important expansion of our domestic and
international sales and marketing efforts, and to accelerate development of new affordable space
products, while giving the Australian investors a mix of benefits,” said Jim Benson, SpaceDev
Chairman and CEO.

Space Projects Australia has announced its intentions to improve parts of the Woomera launch
range it has recently received approval to lease, in expectation of future sounding rocket and
orbital launches, and for possible use by commercial sub-orbital space planes.

About SpaceDev: SpaceDev offers fixed-price package delivery for science instruments and
technology demonstrations to earth orbit, deep space and to other planetary bodies. SpaceDev
designs and sells small, affordable Earth-orbiting commercial and research satellites. The company
is currently designing inexpensive orbital transfer vehicles and secondary payload micro-kick
motors. In 1998, SpaceDev acquired intellectual property rights to hybrid sounding rocket, motor,
and launch vehicle designs and test data produced by the American Rocket Company (AMROC).
SpaceDev offers low-cost commercial missions and spacecraft for lunar orbiters, Mars orbiters
and probe carriers, and asteroid rendezvous and landers. SpaceDev’s sale of these turnkey,
fixed-price, commercial products is a leading-edge innovation for the space industry. Established
in 1997, SpaceDev’s corporate offices are located near San Diego in Poway, California.

For more information contact Charlie Lloyd (858.375.2030) or Jim Benson (858.375.2020)