, a leading provider of commercial space services,
congratulates the International Space Station (ISS) partners and RSC
Energia on the successful docking of the Russian service module,
Zvezda (“Star”), with the ISS earlier today.

The addition of this third module to the ISS, enabling continuous
habitation, is expected to increase demand for space station resupply.
The first crew assigned to the ISS is scheduled to launch October 30
on a Russian Soyuz rocket. SPACEHAB, a pioneer and the industry leader
in space logistics, is prepared to meet the needs of space station
partners and users for transporting pressurized and unpressurized
cargo throughout ISS assembly and operations.

“We applaud the Russian Aviation and Space Agency for Zvezda’s
outstanding performance, and we commend the ISS partners for their
commitment to completing the space station,” said SPACEHAB Chairman
and Chief Executive Officer Shelley A. Harrison after the docking.
“SPACEHAB is pleased to play a part in this endeavor of establishing a
permanent human presence in space.”

“We also congratulate our partner, RSC Energia, on Zvezda’s
success,” said SPACEHAB President David A. Rossi, “and we look forward
to serving an expanding market for space station utilization.” In
addition to supporting space station resupply missions, SPACEHAB is
building its own commercial space station habitat module,
Enterprise(TM), in partnership with Energia. To be launched in early
2003, Enterprise(TM) will be attached to the Russian side of the ISS
and outfitted with a broadcasting studio as well as laboratory and
stowage facilities. SPACEHAB subsidiary Space Media(TM), Inc., is
developing plans for TV and Internet content production and
distribution from Enterprise(TM).

In September, SPACEHAB will embark upon its third resupply mission
to the ISS, aboard the National Aeronautics and Space Administration’s
(NASA’s) Space Shuttle Atlantis. For this mission (STS-106), the
company is providing a pressurized Logistics Double Module (LDM), an
unpressurized Integrated Cargo Carrier (ICC), and a SPACEHAB
Oceaneering Space Systems (SHOSS) box to carry critical equipment and
supplies to the ISS. SPACEHAB flew these same carriers on NASA’s
second ISS resupply mission in May. Last week the crew of STS-106
visited SPACEHAB’s Payload Processing Facility (SPPF) near NASA’s
Kennedy Space Center to review cargo packing and stowage arrangements
on the LDM. The astronauts also completed LDM activation-deactivation
and cargo-transfer training at the SPPF. SPACEHAB completed its own
internal readiness reviews for the ICC on July 25 and for the LDM

SPACEHAB is also supporting ISS assembly and operations by
providing astronaut training at NASA’s Johnson Space Center. Earlier
this year, SPACEHAB’s Engineering Services unit delivered a crucial
space-station-construction training device that it built for NASA.
Astronauts are using this Space Station Remote Manipulator System
(SSRMS) trainer – a 55.5-foot-long, seven-jointed, robotic arm – in
NASA’s Neutral Buoyancy Laboratory (NBL) to prepare for space station
assembly tasks. SPACEHAB manages the NBL for NASA. (To see pictures of
the SSRMS trainer in operation at the NBL, see:

SPACEHAB supported seven successful resupply missions to the
Russian space station Mir preceding the commencement of ISS assembly.
On these Mir resupply missions, NASA used SPACEHAB’s pressurized
logistics modules to transport food, computers, instrumentation and
other critical supplies. Building on this experience, SPACEHAB
developed the ICC and SHOSS box, unpressurized carriers that can
transport thousands of pounds of equipment for use outside the ISS.

SPACEHAB can load important cargo into its modules and carriers
even after they are installed in the Shuttle’s cargo bay and the
Shuttle is on the launch pad, a valuable service that gives the ISS
partners greater flexibility in completing cargo manifests for
assembly and resupply missions. SPACEHAB anticipates supporting at
least three resupply missions a year to the ISS and at least one
Shuttle research mission a year (with its Research Double Module) in
the space station era.

Founded in 1984 and with more than $100 million in annual revenue,
SPACEHAB is a leading provider of commercial space services. SPACEHAB
is the first company to commercially develop, own and operate
habitable modules that provide laboratory facilities and logistics
resupply aboard NASA’s Space Shuttles. The company also supports
astronaut training at NASA’s Johnson Space Center in Texas and
provides commercial satellite processing services for Boeing’s Delta
and Lockheed Martin’s Atlas launch vehicles near Kennedy Space Center
in Florida.

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.

Note: The ISS is visible in the night sky, depending on location
and atmospheric conditions. For information on ISS sighting
opportunities, see: