SpaceDev (OTC Bulletin
Board: SPDV – News) has been awarded a contract by Lunar Enterprise of
California (LEC) for a first phase project to begin developing a conceptual
mission and spacecraft design for a lunar lander program. The unmanned
mission will be designed to put a small dish antenna near the south pole of
the Moon. From that location it will be in near-constant sunlight for solar
power generation, and should be able to perform multi-wavelength astronomy
while communicating with ground stations on Earth.

"We are excited about this project because it is in keeping with the
original goal of SpaceDev to design, build and fly commercial deep space
science missions, and should result in our development of additional
transformational space technology," said Jim Benson, founder, chairman and
chief executive of SpaceDev. "This study picks up where we left off from our
original 1997 Near Earth Asteroid Prospector (NEAP) mission design, our 1999
Mars MicroMission design for NASA’s JPL, and our work in 2001 with Boeing on
possible commercial lunar orbiter missions."

SpaceDev will analyze launch opportunities, spacecraft design, trajectory
possibilities, potential landing areas, available technologies for a small
radio astronomy system, and communications and data handling requirements.
The lunar mission will be designed with the same philosophy as the highly
successful CHIPSat Earth orbiting science spacecraft SpaceDev built for UC
Berkley. SpaceDev’s approach is to make systems as small, low-cost and as
practical as possible while minimizing risks, in order to successfully
demonstrate the performance of science on the surface of the Moon.

"Lunar Enterprise Corporation (LEC) has funded this study to be a catalyst
to other individuals, companies and countries to join together in a return
to the Moon," said Steve Durst, founder and director of LEC. "Many
organizations around the world are planning various lunar missions.
Corporate and national leaders, and the world’s leading lunar scientists,
will be discussing these projects at the International Lunar Conference 2003
in Hawaii this November. We hope this seedling project will help bring all
those parties together to discuss cooperation and identification of
resources for concerted lunar activities."

About SpaceDev

SpaceDev (OTC Bulletin Board: SPDV – News) creates and sells affordable and
innovative space products and solutions to government and commercial
enterprises. SpaceDev products and solutions include the design,
manufacture, marketing and operation of sophisticated micro- and nano-
satellites, hybrid rocket-based orbital Maneuvering and orbital Transfer
Vehicles (MTVs) as well as safe sub-orbital and orbital hybrid rocket-based
propulsion systems. For more information, visit .

About Lunar Enterprise Corporation

Lunar Enterprise Corporation is a wholly owned subsidiary of Space Age
Publishing Company of Hawai’i Island, Hawaii, and Palo Alto, California. LEC
and Space Age support a wide variety of enterprises and activities
consistent with near-term, human, permanent operations on the Moon and with
the founding of Space Age Publishing Company’s next office. For more
information, visit .

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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
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uncertainties and risks customarily associated with developing business
ventures including, but not limited to, risks associated with new product
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as well as risks discussed in the company’s periodic reports filed with the
U.S. Securities & Exchange Commission. The company’s actual results may
differ materially from current expectations. Readers are cautioned not to
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and to read it in conjunction with the Company’s annual report on Form
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company disclaims any intent or obligation to update publicly these
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events or for any other reason.