June 5, 2006–SpaceDev announced today that its subsidiary, Starsys, Inc., a leading developer and manufacturer of engineered mechanical systems to the aerospace industry, has achieved SAE AS9100 certification by the International Aerospace Quality Group (IAQG). SAE AS9100 certification is a globally recognized aerospace-sector standard that defines the quality-system requirements for suppliers to the aerospace industry. The aerospace industry established the IAQG to promote cost reductions and improve quality and safety. The organization is comprised of aerospace companies in the Americas, Asia/Pacific and Europe.

“Quality management systems are important to our business,” said Mark N. Sirangelo, SpaceDev Chief Executive Officer and Vice Chairman. “Starsys’ flight record of more than 2,000 mechanisms flown with 100% operational success is due to our long-term commitment to achieving a consistently high level of quality. The Mars Exploration Rovers and Deep Impact programs, for which Starsys provided mission-critical hardware, provide notable recent examples.”

This SAE AS9100 certification is the latest for Starsys in a series of quality certifications that have included NASA 5300 and ISO-9001. Robert Vacek, the Company’s President and General Manager, commented: “This industry-controlled, independent certification of our quality-management system is a reflection of our commitment to quality and continuous improvement. It is also a required certification with many of our current and potential customers and will therefore strengthen our future new business prospects worldwide in the aerospace market.”

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. In addition, Starsys, Inc., a wholly-owned subsidiary of SpaceDev, is engaged in the design and manufacture of mechanical and electromechanical subsystems and components for spacecraft. Starsys’ subsystems enable critical spacecraft functions such as pointing solar arrays and communication antennas and restraining, deploying and actuating of moving spacecraft components. For more information, visit www.spacedev.com and www.starsys.com.

Except for the factual statements made herein, the information contained in this news release consists of forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism and satisfaction with current prospects, as well as words such as “believe,” “intends,” “expects,” “plans,” “anticipates” and variations thereof, 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. Such forward-looking statements are not guarantees of performance, and the Company’s actual results could differ materially from the Company’s current expectations based on many factors that are directly or indirectly related to the items discussed above. Factors directly related to the subject of this release that could cause or contribute to such differences include risks and uncertainties associated with the Company’s acquisition of Starsys Research Corporation, including (i) the Company’s ability to effectively integrate operations and effectively execute the business plan, (ii) any loss of a major customer or rescheduling or cancellation of customer orders, (iii) the uncertainties in the government budgeting process, (iv) the combined company’s ability to control costs and expenses, (vi) the possibility of further cost overruns on fixed-price contracts, and (vii) the need for additional financing to support the combined business. Reference is also made to other factors set forth in the Company’s periodic reports filed with the Securities and Exchange Commission, including “Management’s Discussion and Analysis” and other sections of the Company’s most current Annual Report on Form 10-KSB and subsequent Quarterly Reports on Form 10-QSB. These forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release.

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