Space Media, Inc., a subsidiary of
SPACEHAB, Inc., today announced that it has delivered payloads
to the International Space Station (ISS) and brought them back to Earth for
LEGO Systems, Inc., and Popular Mechanics magazine.

These educational and promotional packages were transported to the Russian
segment of the ISS aboard the Soyuz TM-32 spacecraft launched April 28 with
three cosmonauts, including U.S. space voyager Dennis Tito, bound for the
station.
The payloads were delivered to the ISS on April 30 and returned to
Earth on a Soyuz spacecraft that landed May 6.

Space Media provided the LEGO Company and Popular Mechanics a commercial
space services package encompassing payload preparation, launch to the ISS,
on-orbit payload procedures (including photographic documentation), and return
flight.

Space Media arranged these services with RSC Energia
(http://www.energia.ru ) of Korolev, Russia.
Energia builds and operates
Soyuz rockets and human-rated spacecraft and serves as prime contractor for
the Russian segment of the ISS.
Energia is SPACEHAB’s partner in the
Enterprise commercial space station habitat project and a partner with Space
Media in developing and marketing space-themed multimedia content.

“We’re pleased to provide our customers access to space,” said Dr. Shelley
A. Harrison, Chairman and Chief Executive Officer of SPACEHAB and Space Media.
“We intend to continue broadening access, especially for students, by flying
more commercial payloads on the ISS.”

Cosmonauts Talgat Musabayev and Yuri Baturin conducted and filmed a
Popular Mechanics promotional initiative and educational experiment using LEGO
bricks aboard Zvezda on May 3.
Following their return to Earth, the payloads
were delivered to their owners in the United States on May 23.

The LEGO Company flew an experiment designed to help students learn about
weight and mass.
Space Media’s STARS Academy global education program
(http://www.starsacademy.com ) developed this experiment, and the Challenger
Center for Space Science Education (http://www.challenger.org ) contributed
educational materials for it.
In this first-ever toy-based experiment on the
ISS, cosmonauts attached a LEGO Life on Mars Red Planet Protector toy set to a
mass measurement device and determined the oscillation frequency of the toy in
the device in order to gauge its mass in space.
Cosmonauts videotaped the
experiment for educational uses. The LEGO payload also included a promotional
banner, which cosmonauts unfurled and photographed in space, and 300 toy
“alien” figures.
Most of the figures will be awarded to winners of the LEGO
“Life on Mars Survival Challenge National Building Contest” for children aged
5-12.

New York-based Popular Mechanics magazine’s promotional package included a
copy of the magazine and a banner displaying its name.
Cosmonauts opened up
the 1-meter-by-0.5-meter banner and the magazine aboard Zvezda and
photographed and videotaped the event.

LEGO Systems, Inc. (LSI), of Enfield, CT, is the Americas division of the
LEGO Company (http://www.LEGO.com ), a privately held firm based in Billund,
Denmark.
The LEGO Company is committed to the development of children’s
creative and imaginative abilities.

Founded in 1902, Popular Mechanics (http://www.popularmechanics.com ) is
the first publication to present technology in a popular, easy-to-understand
format.
The magazine claims a readership of 8.8 million adults and 1.9
million student readers aged 12 to 17.

Space Media, Inc., was created in January 2000 to develop multimedia
business for the Enterprise commercial space station habitat project, a joint
endeavor of SPACEHAB and Energia.
Space Media ultimately intends to produce
space-focused content for TV broadcasting and Internet distribution based on
exclusive access to Enterprise and Energia’s Russian space archives.
Space
Media operates the STARS Academy program, which enables students around the
world to collaborate on space-based experiments via the Internet.
In July
2000, Space Media acquired The Space Store (http://www.thespacestore.com ), an
online retail business that offers hundreds of space-related items for sale.
(The Space Store sells LEGO products such as the Red Planet Protector and
other toys in the LEGO Mars series.)

Founded in 1984, with more than $100 million in annual revenue, SPACEHAB,
Inc., is a leading provider of commercial space services.
The company is the
first to develop, own, and operate habitat modules and cargo carriers
providing laboratory facilities and resupply capabilities aboard NASA’s Space
Shuttles.
It also supports astronaut training at NASA’s Johnson Space Center
in Houston and builds space-flight trainers and mockups.
SPACEHAB’s Astrotech
subsidiary provides commercial satellite processing services at facilities in
Florida and California in support of a range of expendable launch vehicles,
including Lockheed Martin’s Atlas and Boeing’s Delta and Sea Launch rockets.
SPACEHAB’s subsidiary Space Media, Inc.(TM), will bring space into homes and
classrooms worldwide with television and Internet broadcasting from the
International Space Station.

This release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected in such statements. Such risks and
uncertainties include, but are not limited to, whether the company will fully
realize the economic benefits under its NASA and other customer contracts, the
timing and mix of Space Shuttle missions, the successful development and
commercialization of new space assets, technological difficulties, product
demand, timing of new contracts, launches and business, market acceptance
risks, the effect of economic conditions, uncertainty in government funding,
the impact of competition, and other risks detailed in the Company’s
Securities and Exchange Commission filings.