In addition, SpaceDev has acquired exclusive possession of and access to a large quantity of Amroc engineering documents, plans, designs, test results, manufacturing data, and other materials related to the rocket motors and Amroc launch vehicles.

"We believe this technology could be useful in a wide variety of commercial launch vehicle applications," said Jim Benson, president and chairman of SpaceDev. "Hybrid rocket technology is relatively simple, environmentally cleaner than most propulsion systems, non-explosive and less expensive to manufacture. Furthermore, it is easily transported, throttleable, restartable, and scalable."

Benson noted that hybrid rocket technology has many potential markets, some of which could be internally useful to SpaceDev and its subsidiaries in the future, and some of which could become products for sale to commercial and government customers.

Hybrid rocket motor products could include: small and large boosters for use in sounding rocket applications, university class satellite launches and LEO constellation launches; boosters for sale as main propulsion systems for external customers; strap-ons for expendable and reusable launch vehicles; smaller specialized motors for use in upper stages; and for complete launch systems.

Integrated Space Systems (ISS), a wholly owned subsidiary of SpaceDev, spent several months studying and analyzing original Amroc engineering and test result documents. The documents were generated from years of Amroc testing and improvements, and rocket motor test firings. ISS engineers concluded that Amroc had done excellent engineering, and had brought the technology close to commercial viability.

"Hybrid rockets combine a liquid oxidizer and solid fuel (therefore hybrid) into a rocket motor," said Phil Smith, Chief Operating Officer of SpaceDev. "Because rocket motors or engines form a large part of the total cost of any launch vehicle, controlling this fundamental underlying technology could be key to developing low cost launch systems."

In the agreement, SpaceDev is granted the exclusive world wide license rights for the technology for a minimum of five years. If SpaceDev is successful in developing a commercial market for the hybrid rocket technology, it will have the rights to purchase the technology over the next five years in exchange for discounted warrants for the purchase of SpaceDev common stock. The warrants would be issued in relation to sales of the rocket technology and the maximum dilution will not exceed three million shares. If SpaceDev is not successful in developing a commercial market for the technology, the company will return the technology and have no further obligation for the issuance of additional warrants.

Mr. Benson added, "The agreement is extremely fair for both SpaceDev and the owner of the technology as it allows for both to share in the success of the technology as may be further developed and marketed by SpaceDev."

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 offering for sale 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.

Hybrid Rocket Motors - Short NASA Data page

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