<br /><br />SpaceDev Reports Year-End 2005 Results <br /><br />Twelfth Consecutive Quarter of Revenue Growth<br /><br /> <br /><br />POWAY, CA – March 28, 2006 – SpaceDev, Inc. (OTCBB: SPDV) reported its financial results for the year ended December 31, 2005. The Company recorded its twelfth consecutive quarter of revenue growth and eighth consecutive quarter of operating profit.<br /><br /> <br /><br />For the fiscal year ended December 31, 2005, SpaceDev's revenue was approximately $9.0 million, an increase of 84% compared to approximately $4.9 million for 2004. The increase in revenue was due primarily to successful execution and performance under the Company's contract with the Missile Defense Agency and other smaller government contracts.<br /><br /> <br /><br />"With a lot of hard work and dedication from the SpaceDev team, we achieved many technical and financial targets for fiscal 2005," said Mark N. Sirangelo, SpaceDev's new chief executive officer. "I am honored to have joined such an innovative and ground-breaking company. Recently, SpaceDev completed the acquisition of Starsys Research Corporation, closed on a $5.2 million equity financing to be used for the Starsys acquisition and for growth capital, and was awarded several new small contacts in 2005 and early 2006 for initial phases for its sophisticated micro- and nano-satellites and hybrid rocket motor propulsion systems."<br /><br /> <br /><br />Additionally, Mr. Sirangelo reported, the Company introduced, in 2005, a low-cost modular micro-satellite, called the SpaceDev Mission Xcelerator(TM) Solution, which offers high performance at a low cost per pound. The package includes a SpaceDev MMB-100 satellite bus, payload integration services, a launch and one year of technical support, all for less than $20 million in less than 20 months. SpaceDev also introduced a unique concept for the SpaceDev Dream Chaser(TM) vehicle, a six-passenger human space transport system. The system is designed to meet the needs of the emergi