SPACEHAB, Inc. today
announced that John M. “Mike” Lounge, currently Executive Vice
President of the Company’s Johnson Engineering unit, has been named
Program Manager for the Company’s new Enterprise(TM) Program.

Enterprise(TM) is a historic project: this space habitat will be
the first commercial real estate in space. SPACEHAB is building
Enterprise(TM) with the Russian aerospace company RSC Energia.
Enterprise(TM) will be docked to the International Space Station (ISS)
and equipped for research, stowage, and television and Internet
broadcasting.

The broadcast studio on Enterprise(TM) will be the first of its
kind, dedicated to producing original informational, educational and
entertainment programming live from orbit.

Enterprise(TM) will extend SPACEHAB’s traditional businesses of
microgravity research support and space station services from the
Space Shuttle to the ISS and initiate its long-term strategy of
addressing mass markets through broadcasting from space. Worldwide
interest in space activities should provide substantial opportunities
for advertising, promotion, and sponsorship.

As Enterprise(TM) Program Manager, Lounge will manage contracts
and joint agreements with Energia and others as required and work with
potential customers to validate and implement system requirements.

Lounge joined SPACEHAB in 1991 as Director of Operations and
served as the Company’s initial Shuttle-Mir Program Manager from 1994
to 1995. He headed up all SPACEHAB new hardware development activity
as Vice President of Flight Systems Development from 1996 through
1999.

Lounge has a B.S. degree in physics and mathematics from the U.S.
Naval Academy (1969) and an M.S. in astrogeophysics from the
University of Colorado (1970). He served in the U.S. Navy from 1970 to
1978, completing tours of duty aboard the U.S.S. Enterprise and U.S.S
America.

Lounge flew numerous combat missions in Vietnam and is the
recipient of six Navy Air Medals and three Navy Commendation Medals.
He began his NASA career as a Mission Operations engineer at Johnson
Space Center in Houston and was selected for the NASA Astronaut class
of 1980. He flew three Space Shuttle Missions: STS-51I in 1985, STS-26
in 1988 and STS-35 in 1990.

“With his experience and expertise in space flight, Mike is an
invaluable asset. Under his leadership, the Enterprise(TM) Program is
bound to thrive, serving the needs of the Company as well as those of
our partners and customers around the world,” said SPACEHAB President
and Chief Operating Officer David A. Rossi.

“Enterprise(TM) is the first big step off Planet Earth for
private enterprise in space, independent of government funding. The
ISS partners have endorsed greater commercial participation in the
space station. As a private company with 15 years of experience
working in manned space and partners and customers around the world,
we are committed to making space commerce a reality.”

Key members of Lounge’s Houston-based Enterprise(TM) team
include: Phil Mongan, Business and Operations Development; Pete
Gadsby, Enterprise Module Development; Frank Eichstadt, Enterprise
Module Architecture; and Bob Harris, Communications and Data Systems.

SPACEHAB is the world’s leading provider of commercial payload
processing services for manned and unmanned payloads. The Company has
flown its research and logistics modules on 13 Space Shuttle missions.

With its Johnson Engineering and Astrotech units, SPACEHAB is a
global leader in space commerce and the first company to commercially
develop, own and operate habitable modules for research and logistics
resupply aboard NASA’s Space Shuttles.

Contact:

     SPACEHAB, Inc.
     Linda Billings, Director of Communications,
     202/488-3500 x201
     billings@hqspacehab.com