SpaceDev Dream Chaser^TM Space Plane Development Continuing

POWAY, CA – January 7, 2008 – SpaceDev, Inc. (OTCBB: SPDV) recently completed its second milestone under the Space Act Agreement that was signed with NASA in June 2007.  The significant milestone completed is the Flight Test Plan for the Dream Chaser^TM space vehicle.  The plan provides a detailed approach for the Dream Chaser™ to conduct numerous suborbital flight tests in preparation for its first orbital flight later this decade.

SpaceDev entered into the Space Act Agreement with NASA to facilitate its development of reliable, safe and affordable transportation of passengers and cargo to and from Earth orbit.  As part of the agreement, NASA is providing support regarding ISS visiting vehicle requirements and processes as well as ongoing quarterly milestone review meetings.

SpaceDev Dream Chaser^TM Space Plane approaching the ISS

"The on schedule completion of our second milestone reaffirms our commitment to the development of the Dream Chaser™ and to the value of NASA’s Space Act Agreement program. SpaceDev and NASA teams are continuing to work well together to advance the Dream Chaser^TM launch vehicle,” said Mark N. Sirangelo, SpaceDev’s Chairman and Chief Executive Officer.  “SpaceDev is excited about completing another significant technical milestone which enables us to forward our development schedule.”

The SpaceDev Dream Chaser^TM space vehicle is a derivative of the HL-20 Launch System developed by NASA Langley.  The vehicle has on-board propulsion utilizing SpaceDev’s patented and patent-pending hybrid motor technology.  This unique space transportation system is designed to effectively, reliably and safely carry crew/passengers and cargo in both the suborbital and orbital flight regimes.  The SpaceDev Dream Chaser^TM Space Vehicle can be adapted to various mission configurations including carrying all passengers; pressurized or unpressurized cargo or, various combinations of crew and pressurized cargo.  It is a piloted space solution which launches vertically and lands horizontally on conventional runways.

About SpaceDev

SpaceDev, Inc. is a space technology/aerospace company that creates and sells affordable and innovative space products and mission solutions.  For more information, visit www.spacedev.com

Except for factual statements made herein, this news release consists of forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. 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, and are not guarantees of performance. The Company's actual results could differ materially from its current expectations. Factors that could contribute to such differences include risks and uncertainties associated with the Company's ability to effectively manage schedule changes or cancellation of customer orders, control costs and expenses, and obtain additional financing, if needed. Reference is also made to other factors described in the Company's periodic reports filed with the SEC, including 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. SpaceDev does not intend to update these forward-looking statements.

SpaceDev Investor Relations
Investor Contact:
Richard Slansky/Jessica Schwarz
Media Contact:
Mark Sirangelo
(858) 375-2026