a leading provider of commercial space services, today announced that the
Company’s Research Double Module (RDM) has been rescheduled for its first
flight on NASA Space Shuttle mission STS-107, which is preparing for liftoff
no earlier than November 29, 2002.

Due to multiple launch schedule delays in the STS-107 mission, NASA has
accepted the Company’s proposal for payment of an equitable adjustment for
work being performed on this mission. SPACEHAB anticipates pricing
negotiations on this proposal to commence within a week.

SPACEHAB’s RDM, a state-of-the-art research facility that flies in the
Shuttle’s cargo bay, quadruples the amount of working and living space
available to astronaut crews. For STS-107, the RDM will carry almost 9,000
pounds of experiments and equipment, accommodating 30 experiments conducted by
more than 80 investigators.

One exciting payload is made possible through a unique commercial
education program called STARS, operated by SPACEHAB’s majority-owned
subsidiary Space Media Inc. The STARS payload is comprised of six experiments
designed by students from around the world. These future engineers and
scientists from Australia, China, Israel, Japan, Liechtenstein, and the United
States have developed biological and physical sciences experiments while
working with astronauts and space experts. Results of the students’ space and
ground experiments, as well as design concepts and school information, will be
available online at

Under its Research and Logistics Mission Support (ReALMS) contract with
NASA, SPACEHAB provides research and logistics services, such as those
furnished on the STS-107 mission, via pressurized carriers and unpressurized
pallets. NASA has formally announced that it is preparing for an 18-month
extension of this contract that will lengthen the current service through June
30, 2005. The intent of this modification is to extend the period of
performance for work to be conducted on STS-118 and, more importantly, to
provide options for adding unpressurized and/or pressurized logistics missions
using SPACEHAB carriers to the existing contract within the next several

In a related development, SPACEHAB also has received a request for
proposal from NASA to fly up to an additional 500 pounds of cargo mass on the
STS-116 mission currently slated to fly in June 2004. After completion of a
structural analysis of the SPACEHAB single module that will raise the current
4800 pounds of available mass to 5300 pounds, SPACEHAB will negotiate the
price for flying the additional equipment and supplies for NASA. This
increase in mass limit improves revenue potential for STS-116 and other future

“These increased requirements indicate that NASA continues to receive
significant value from our services and assets,” said SPACEHAB President
Michael Kearney. “We anticipate that our modules and pallets will be used
routinely to maximize research during ISS utilization.”

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
California and Florida. Additionally, through The Space Store, Space Media
provides space merchandise to the public and space enthusiasts worldwide

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.

  • Kimberly Campbell
  • Director of Marketing
  • 713.558.5049