SPACEHAB, Inc., a leading provider of commercial space services,
today announced that it has finalized contract agreements to fly three
additional experiments aboard the company’s Research Double Module
(RDM) on a Space Shuttle mission next year.

These agreements, worth more than $1 million, raise the total
value of the company’s flight contracts for the STS-107 mission to
$36.9 million.

SPACEHAB has signed a $922,000 contract to provide space-based
research services aboard SPACEHAB’s RDM for a European Space Agency
(ESA) experiment called ERISTO (European Research in Space and
Terrestrial Osteoporosis).

The ERISTO experiment will fly, along with many others manifested
for the RDM, on the National Aeronautics and Space Administration’s
(NASA’s) Space Shuttle research mission STS-107, now scheduled to
launch in June 2001.

SPACEHAB also has signed an $83,000 agreement with the Circle for
the Promotion of Science and Engineering (CPSE), affiliated with the
Tokyo Institute of Technology, and the Japanese Space Utilization
Promotion Center (JSUP) of Tokyo to fly a student experiment on

The experiment, called JUSTSAP S*T*A*R*S(TM), is being developed
by Japanese students under the Space Technology And Research Students
(S*T*A*R*S(TM)) program ( managed by SPACEHAB
subsidiary Space Media(TM), Inc. (SMI(TM)).

In addition, SPACEHAB has signed a $40,000 agreement with the
Japan Space Utilization Promotion Center (JSUP) and the University of
Alabama-Birmingham (UAB) Research Foundation for the flight of a
Japan/U.S. Space Protein Crystal Growth (JUSPRO) experiment on
STS-107. This agreement covers the flight opportunity, payload
integration, and the provision of flight and ground experiment blocks.

“SPACEHAB is happy to support applied microgravity research that
could benefit millions of people here on Earth as well as educational
endeavors that can engage young people in the excitement of space
exploration,” said SPACEHAB President David A. Rossi. “These projects
help to pave the way toward expanded scientific and industrial
research and educational activities aboard the International Space

ERISTO involves academic and industry partners and is the first
experiment that SPACEHAB will handle for ESA’s Microgravity
Applications Promotion Programme. SPACEHAB is already under contract
to fly a similar experiment, using similar equipment, for the Canadian
Space Agency (CSA) on STS-107. CSA’s experiment, OSTEO, also relates
to the study of osteoporosis.

STS-107 will mark the second flight of CSA’s OSTEO experiment,
following its initial successful operation on orbit by former Senator
John Glenn on Shuttle mission STS-95 in 1998. Millenium Biologix of
Kingston, Ontario, Canada, builds the equipment used for these
space-based experiments and also provides related ground-based
laboratory equipment, used worldwide for research into osteoporosis, a
debilitating condition involving bone mass loss.

The JUSTSAP S*T*A*R*S program is a product of discussions held at
a Japan-U.S. Science, Technology and Space Application Program
(JUSTSAP) workshop in November 1999. The JUSTSAP S*T*A*R*S contract
covers sponsorship of the S*T*A*R*S “Super Nova” school that will
develop and fly the experiment as well as sponsorship of a limited
number of additional schools that will participate in some elements of
the student research program.

The JUSPRO protein-crystal-growth experiment will be flown on
SPACEHAB’s Commercial Macromolecular Protein Crystal Growth Facility,
managed in partnership with UAB.

The agreement to fly the ERISTO experiment was coordinated by
SPACEHAB’s European marketing agent, INTOSPACE, of Leiden,
Netherlands, and involves the amendment of existing contracts for
STS-107 flight services. The JUSTSAP S*T*A*R*S and JUSPRO contracts
were coordinated by SPACEHAB’s Japanese marketing agent Mitsubishi

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 newest strategic growth initiative, Space Media, Inc.
(SMI(TM), a subsidiary), 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.