SpaceDev Introduces Low Cost Modular Microsatellite; SpaceDev Revolutionizes Space Industry with Under 220 Pound, Standards-Based Microsatellites.

POWAY, Calif. -- SpaceDev (OTCBB: SPDV) announced a new high performance microsatellite product program named the SpaceDev Modular Microsat Bus(TM). The SpaceDev MMB-100 microsat is a highly capable modular 100 kg (220 pound) microsatellite based on industry standard "Plug-n-Play" interfaces. In addition to standard Ethernet and USB interfaces, the SpaceDev MMB-100 uses a real-time Linux operating system, and uses CORBA-based object oriented interfaces for subsystems as well as commanding from the ground via the Internet. The basic SpaceDev MMB-100 Bus is expected to price at less than $10 million, not including the payload and payload integration.

"SpaceDev is continuing to revolutionize the space industry," said Jim Benson, founding Chairman and Chief Executive of SpaceDev. "By introducing a standards-based high performance microsatellite at a fraction of the cost of traditional satellites, we hope to increase sales and continue providing higher performance at a lower cost per pound, as we did with CHIPSat, and are now doing with our Missile Defense Agency DSE microsats."

The SpaceDev MMB-100 is designed to be a secondary payload on Boeing Delta IV or Lockheed Atlas V launch vehicles flying the EELV Secondary Payload Adapter ring (ESPA). The SpaceDev MMB-100 is also designed to be launched as multiple primary payloads on such small launch vehicles as the SpaceX Falcon I and Orbital Sciences Pegasus.

In 2003, NASA launched its standalone high performance Internet-based CHIPSat 40 kg microsat, designed and produced by SpaceDev for UC Berkeley and funded by NASA. SpaceDev is currently developing multiple 100 kg microsats with vastly increased capabilities beyond CHIPSat. Like CHIPSat, the SpaceDev MMB family will be Internet-based, and mission control and operations can take place from PCs or laptop computers from anywhere in the world. The three-axis stabilized SpaceDev MMB-100, includes a high performance flight computer, GPS, star tracker, S-band transceiver, and power conditioning and distribution subsystems. The basic SpaceDev MMB-100 is designed for payloads of up to 40 kg, and can deliver up to 80 watts of power to payloads while providing accurate and rapid pointing, slewing and tracking. Expanded capability models can be made available.

"This new product is a great deal for our customers," said Benson. "SpaceDev engineers have put a significant effort into developing a standards-based, high performance, modular, low-cost microsatellite. It uses existing industry standards like Ethernet, USB and RS-422 for its hardware interfaces, and reusable software modules for its subsystems. The SpaceDev MMB-100 provides a true plug and play capability, resulting in mission flexibility and reliability, at a very low price."

SpaceDev draws upon common business practices from outside the aerospace industry to design and manufacture its high reliability, low-cost products, and uses commercial off-the-shelf technologies wherever possible in order to reduce cost and risk, and to increase reliability.

For more detailed information, visit our website at www.spacedev.com or for additional technical or sales information please contact Kevin Heath as 858-375-2012.

About SpaceDev

SpaceDev (OTCBB: SPDV) is a high tech space development company that 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. SpaceDev designs and builds safe hybrid rocket motor propulsion systems for sub-orbital and orbital transportation systems for cargo and for human space flight. Upon founding SpaceDev in 1997, Jim Benson started the trend of successful computer entrepreneurs moving into the space development arena. For more information, visit www.spacedev.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, but 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 those contained in such statements. Factors that could cause or contribute to such differences include risks and uncertainties associated with the Company's acquisition of Starsys, including possible integration problems and difficulties regarding the execution of the business plan for the combined companies; the ability of the Company to raise additional capital on acceptable terms; market acceptance of the Company's products; worldwide spending levels in the space industry; rescheduling or cancellation of customer orders or government contracts; unforeseen development challenges and delays; general competition and price pressures in the marketplace; the introduction of new products by competitors that might be competitive in price and features; manufacturing difficulties; the Company's ability to control costs and expenses; and general economic conditions including but not limited to the effect of inflation on pricing. Reference is also made to other factors set forth in the Company's filings with the Securities and Exchange Commission, including "Management's Discussion and Analysis" and other sections of the Company's Form 10-KSB currently on file with the SEC. 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.