and RSC Energia, leading providers of commercial space services, today
announced the completion of a baseline design for the Enterprise(TM)
commercial space station module project and endorsement of the project by the
Russian Space Agency, Rosaviakosmos.

The partners approved the baseline design following a joint review
concluded in late December.
SPACEHAB and Energia are already at work on
detailed design and procurement of long-lead-time materials and components.
Fabrication of some components is ready to begin at Energia’s Korolev
The partners plan to launch the commercial Enterprise Module to
the International Space Station (ISS) in 2003 on a Russian Proton launch

In support of this effort, Rosaviakosmos, RSC Energia, and SPACEHAB signed
a Joint Resolution Concerning Basic Principles of Implementation of the
Multipurpose Module Enterprise as Part of the Russian Segment on the ISS on
February 16, 2001.
This agreement grants docking and utilization rights to
the Enterprise partnership in return for providing functions previously
planned for a Russian Docking and Stowage Module (DSM).

The Enterprise project involves development, construction, and operation
of a multipurpose module as part of the ISS Russian Segment (ISS RS).
For the
first time in the history of space exploration and development, a project of
this magnitude will be performed on a commercial basis with Russian, U.S.,
and, potentially, other interested companies.
As part of this initiative,
SPACEHAB and Energia are actively seeking customers and investors for
marketing and business opportunities, leveraging this unique access to space.

Enterprise will become part of ISS RS configuration, replacing the DSM and
providing all of the DSM’s intended functions.
It will also provide
additional functions including a docking port for logistics vehicles,
propellant resupply via transit fuel lines, and roll control thruster
accommodations while also pursuing other commercial objectives.
Enterprise is
being developed to meet research, stowage, crew support, habitation and
multimedia needs.
This module provides the flexibility to accommodate a
variety of users.

RSC Energia is a leading Russian aerospace company and one of the most
experienced developers and manufacturers of aerospace hardware in the world.
The organization’s engineers have developed and built more than 320 types of
spacecraft including the first low-earth orbiting Sputniks, Vostok manned
spacecraft, and the orbiting space station Mir.
RSC Energia is the prime
contractor for the ISS Russian Segment.
Space vehicle Soyuz-TM1 and Progress-
M1 spacecraft, built by RSC Energia, provide efficient transportation in
support of ISS operations.

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
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 Space Media, Inc. subsidiary, will bring space into homes and
classrooms worldwide with television and Internet broadcasting from the
International Space Station.

For more information on these initiatives see and .

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.