SPACEHAB, Inc.,
a leading provider of commercial space services, today announced that it has
signed a contract modification with NASA worth $42.4 million to provide its
pressurized Logistics Single Module (LSM) and unpressurized Integrated Cargo
Carrier (ICC) for two new International Space Station (ISS) assembly and cargo
resupply missions.

These two new missions, STS-116 (12A.1) and STS-118 (13A.1), were added to
SPACEHAB’s Research and Logistics Mission Support contract with NASA and are
currently on NASA’s Space Shuttle manifest to launch in calendar year 2003.
SPACEHAB will commence work on the missions immediately. These LSM/ICC flights
will be SPACEHAB’s sixth and seventh resupply missions to the ISS.

The dual assembly and resupply objectives of each of these two missions
are ideally suited for SPACEHAB’s versatile inventory of modules (single and
double) and pallet carriers (horizontal and vertical). NASA’s selection of the
LSM and horizontal ICC configuration for each of these new missions allows for
co-manifesting of critical ISS structural elements and Orbital Replacement
Unit (ORU) subsystem components. Along with modifications made to the Space
Shuttle Columbia, SPACEHAB’s flexibility in locating its carriers within the
shuttle cargo bay is enabling NASA to use this orbiter for missions to the
ISS, marking STS-118 as Columbia’s first visit to the orbiting space station.

SPACEHAB President and Chief Operating Officer Michael E. Kearney stated,
“The addition of these two missions reflects how SPACEHAB can help NASA with
the challenges faced when managing the resources of the nation’s space
program. Our ability to offer a combination of valuable services in a single
mission, such as crew exchange, external hardware, and logistics support, is
an important contribution to ISS assembly and operations.”

SPACEHAB’s next shuttle flight, STS-107, is a dedicated research mission
currently scheduled to launch in July 2002. This mission will debut the flight
of SPACEHAB’s Research Double Module, a $100 million asset.
This flight also
marks the 18th mission for SPACEHAB, which has achieved nearly $500 million in
revenue for supporting NASA research and logistics missions.

With more than $100 million in annual revenue, SPACEHAB, Inc. is a leading
provider of commercial space services. The company develops, owns, and
operates habitat and laboratory modules and cargo carriers aboard NASA’s Space
Shuttles. Its Johnson Engineering subsidiary supports astronaut training and
space station configuration management 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.
SPACEHAB’s newest strategic growth initiative,
SPACEHAB Huntsville, will provide customer-focused end-to-end services to the
space research community at NASA’s Marshall Space Flight Center in Huntsville,
Alabama.
Additionally, through The Space Store, SPACEHAB provides space
merchandise to the public and space enthusiasts worldwide
(http://www.thespacestore.com ).

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.

  • For more information, contact:
  • Kimberly Campbell
  • Director of Marketing
  • SPACEHAB, Inc.
  • Phone: 713-558-5049
  • Fax: 713-558-5960
  • campbell@spacehab.com

Web site:
http://www.spacehab.com