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NEAP Gets A Stellar Proposal
San Diego - August 31, 1998 - A team led by Dr. Kevin Hurley from the University of California, Berkeley, has submitted a proposal to NASA's MIDEX program to fly the Burstman gamma-ray burst instrument on-board SpaceDev's private exploration platform NEAP-1.

If funded, Burstman would help to fulfill a previously stated NASA objective to further study cosmic gamma-ray bursts and it would complete a partially existing interplanetary network of burst detectors being flown on other deep space missions.

The inclusion of Dr. Hurley's team builds on the two principal investigators who already submitted formal proposals to NASA's Discovery program.

If the proposals are ultimately approved by NASA, the investigators' science instruments would be available to purchase a ride on SpaceDev's privately sponsored Near Earth Asteroid Prospector (NEAP) as Mission of Opportunity (MO) investigations.

"We are very pleased that Dr. Hurley and his team have submitted a proposal to fly their Burstman experiment on NEAP," said Jim Benson, president and chief executive officer of SpaceDev. "We believe this is an exciting and scientifically sound proposal. Furthermore, we are extremely pleased about the opportunity that now exists for NASA to use a commercial service to build up and complete their existing network of burst detectors, and about the possibility of flying both space physics and planetary science investigations on the same mission."

The funding of MOs would represent a significant and innovative departure from NASA's historical business practice. Should the agency's attempt to change its typical approach of funding only full, government missions under the MIDEX and Discovery programs, it would be sending a strong message to both the science/research community as well as the commercial sector that NASA is serious about encouraging space commercialization. In this new environment, scientists have the option to pick and choose from a variety of inexpensive and insured opportunities to quickly fly their instruments without fighting for years through the complexities of coordinating, designing and executing a complete mission. Additionally, the commercial market would be bolstered by the agency's step forward in realizing its long-discussed space commercialization goals.

Benson added, "Dan Goldin (NASA Administrator) deserves a lot of credit for creating opportunities for scientists and researchers to combine good science and reduced risk with the significant cost reductions associated with NEAP. By letting science teams simply purchase instrument rides on commercial space science missions like NEAP, NASA could be able to fund more scientists with fewer dollars. We also believe the possibility exists for NASA to seize upon the synergies between existing missions and complementary instruments like Burstman that could be accommodated on commercial missions. This integration of resources is truly a revolutionary approach to space science."

SpaceDev, the world's first commercial space exploration and development company, intends to launch the first privately financed spacecraft to land on another planetary body. SpaceDev is selling rides for scientific instruments to governments and companies to transport their instruments and experiments through deep space to a near Earth asteroid. SpaceDev intends to sell the data acquired by its instruments as commercial products. Colorado-based SpaceDev has offices in San Diego, CA and Washington, DC.

FYI

The foregoing press release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor" for certain forward-looking statements. Forward-looking statements in this press release relating to product development, business prospects and development of a commercial market for technological advances 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 new business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. 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.

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