Spacehab Receives $5 Million Increase to Nasa Contract for Additional Services On Upcoming Shuttle Research Mission

SPACEHAB, Inc., a leading provider of commercial space services,
today announced that it has received $5 million of new business from
the National Aeronautics and Space Administration (NASA) for
additional flight services on an upcoming Space Shuttle mission,
STS-107, dedicated to microgravity and life sciences research.

NASA had previously contracted with SPACEHAB for the use of the
company’s Research Double Module (RDM) on STS-107, now scheduled to
launch in June 2001. However, the agency recently identified a need
for additional services in conjunction with the use of the RDM. NASA
consequently decided to add a $5 million modification to its Research
and Logistics Mission Support (REALMS) contract with the company for
additional experiments, process improvements and hardware enhancements
to better support STS-107 and future RDM missions. The $5 million
addition raises the value of SPACEHAB’s contract for STS-107 so far to
a total of $34.9 million.

More than 8,500 pounds of equipment and experiments are already
manifested on STS-107. This international mission will mark the debut
of the RDM. In addition to NASA, the European Space Agency, National
Space Development Agency of Japan, Canadian Space Agency, German Space
Agency, and U.S. Department of Defense – all customers acquired by
SPACEHAB – will also fly experiments in SPACEHAB’s commercial
allocation of space aboard the RDM. The Space Technology And Research
Students (S*T*A*R*S(TM)) global space education program, managed by
SPACEHAB’s subsidiary Space Media(TM), Inc., will fly a full locker of
experiments developed by students in Australia, China, Israel, Japan,
and the United States on this mission.

To register a school to participate in the STS-107 S*T*A*R*S
experiments, contact Space Media at 202/488-3500 (toll-free
888/647-9543) or visit http://www.starsprogram.com.

SPACEHAB and NASA established the REALMS contract in 1997 to
enable the agency to manifest new Shuttle research flights or space
station resupply missions as needed.

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.