SpaceDev Reports Revenue Increase on Verge of Merger with Sierra Nevada

SPACEDEV PRESS RELEASE

SpaceDev, Inc. reported its financial results for the three and nine months ended September 30, 2008 with year to date revenues of approximately $28.3 million, an increase of over 11.6%, net income for the nine months of almost $500,000 and Adjusted EBITDA of approximately $2.1 million for the same nine month period.

“We are fortunate to have the industry’s most outstanding employees and I would like to thank them for their dedication and hard work which enabled these results,” said Mark N. Sirangelo, SpaceDev’s Chairman and Chief Executive Officer.

Revenue — SpaceDev reported revenue of approximately $9.0 million and $28.3 million for the three and nine months ended September 30, 2008, an increase of approximately $1.4 million and $3.0 million, or 18.9% and 11.7% for the three and nine month periods respectively, from the approximate $7.6 million and $25.3 million in revenue reported for the same three and nine month periods in 2007.

Income from Operations — SpaceDev realized income from operations of approximately $348,000 and $586,000 in the three and nine months ended September 30, 2008, which included approximately $164,000 and $420,000 for stock option expense, compared to an operating income of $164,000 and $539,000 for the same three and nine months in 2007, which included approximately $90,000 and $302,000 for stock option expense. In addition and included as operating expenses, the Company increased by 135% its investment in R&D, investing year to date over $623,000 in 2008 compared to $265,000 in 2007.

Net Income — Net income for the three and nine months ended September 30, 2008 was approximately $293,000 and $498,000 respectively, compared to approximately $58,000 and $214,000 for the same three and nine month periods in 2007 with $0.00 earnings per share for both quarters and earnings per share of $0.01 for the nine months to date in 2008 and $0.00 for 2007.

Cash Position — At September 30, 2008, SpaceDev’s cash position, which included cash reserves and cash available for investment, was approximately $5.8 million compared to approximately $6.5 million at December 31, 2007. The change is primarily due to the repurchase of preferred stock of $1,368,000 year to date. The Company’s current ratio improved to 2.11 (at September 30, 2008) from 2.04 (at September 30, 2007).

Adjusted EBITDA

During the three and nine months ended September 30, 2008, SpaceDev’s Adjusted EBITDA was approximately $0.9 million, or 10.0% of net sales, and $2.1 million or 7.4% of net sales, respectively, compared to an adjusted EBITDA of $0.5 million, or 6.6% of net sales, and $1.4 million, or 5.5% of net sales, for the same three and nine months in 2007.