SpaceDev CEO to Receive Business Leadership Award from San Diego Chamber of Commerce.

POWAY, Calif. -- Jim Benson, founding Chairman and Chief Executive Officer of SpaceDev (OTCBB: SPDV), will be presented with the first "Business Leadership in Science and Technology Award" by the San Diego Regional Chamber of Commerce at its 134th annual dinner on January 18, 2004.

Upon founding SpaceDev in 1997, Jim Benson started the trend of successful computer entrepreneurs moving into the space development arena. With the long-term vision of building private sector exploration and profitable economic development of space, he has brought to this challenge the fast-moving entrepreneurial development style, which characterized the microcomputer revolution that made affordable, personal home computers a reality. In just a few years, Space Dev has successfully demonstrated that, with the proper vision and leadership, the private sector can deliver the quick, innovative, practical, and low-cost space solutions required to rapidly and affordably drive the expansion of human space exploration and development in what may now be humanity's 'Second Space Age'.

This 'Second Space Age' is exemplified by SpaceDev's development of CHIPSat for NASA, powering the successful launches of SpaceShipOne, the commencement of a multi-tiered micro-satellite contract for the Missile Defense Agency (MDA) that will be the first to introduce Local Area Networking in space, the development of a small launch vehicle for the Air Force, and the continuation of SpaceDev's development of a mission and spacecraft design for an unmanned mission to land a small dish antenna near the south pole of the moon. Each of these accomplishments demonstrates that SpaceDev's goal of building its own private sector space program is becoming a reality.

"In a region long credited with being on the leading edge of science and technology, the Chamber of Commerce has consistently identified, supported and fostered the growth of San Diego's most innovative people and organizations," said Benson. "I am honored to accept this award in recognition of the role my colleagues and I play at this critical moment in the history of space exploration and development, and I share this award with each and every SpaceDev shareholder and employee who are helping to 'make space happen!'"

Benson has over 30 years of successful, hands-on high-tech entrepreneurial and management experience and was recently named one of the "50 People to Watch in 2005" by San Diego Magazine. Prior to founding SpaceDev, Benson was founder and president of Compusearch Software Systems and ImageFast, both of McLean, Virginia. He founded the non-profit Space Development Institute and introduced the Benson Prize for Amateur Discovery of Near Earth Objects. He is also Vice-Chairman and private sector representative on NASA's national Space Grant Review Panel and a member of the American Society of Civil Engineers subcommittee on Near Earth Object Impact Prevention and Mitigation. Benson holds a Bachelor of Science degree in Geology from the University of Missouri.

About SpaceDev

SpaceDev (OTCBB: SPDV) 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. For more information, visit www.spacedev.com.

This news release may contain forward-looking statements concerning the Company's business and future prospects and other similar statements that do not concern matters of historical fact. Forward-looking statements are based on the Company's current expectations. The Company's current expectations are subject to all of the uncertainties and risks customarily associated with developing business ventures outlined in the Company's periodic reports filed with the U.S. Securities & Exchange Commission. Readers are cautioned not to put undue reliance on forward-looking statements contained in this release and to read it in conjunction with the Company's annual report on Form 10-KSB, including the consolidated financial statements filed therewith. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.