Greetings,

After months of preparation, the UC Berkeley and SpaceDev teams recently presented detailed mission, spacecraft and science instrument designs to NASA’s Explorer Office confirmation review panel, and responded to dozens of programmatic and technical questions. The CHIPSat team is continuing its progress toward an early 2002 launch date. The mission is still on time and on budget, despite the months-long delays caused by the extended NASA reviews.

SpaceDev has successfully performed test firings of its clean, safe hybrid rocket motor. The next test firing, with an upgraded nozzle and improved combustion chamber will be at 10:00 AM (PST) this Friday, December 1. We will attempt to stream a live video of the test firing from our new, higher speed web site. Please visit our web site for more details: http://www.spacedev.com

SpaceDev stock (OTCBB: SPDV) is in the $1.00 vicinity. Please see our web site for information about our record 3rd Quarter, and year-long string of good Quarters.

Sincerely,

Jim Benson