Introduction of First Production Facility in Space Marks Foray Into News, Entertainment & Educational Programming

SMI to Develop SPACEHAB’s Exclusive Multimedia Rights to Russian Space Archives

In a step destined to extend the limits of multimedia programming,
SPACEHAB Inc. has launched Space Media Inc. (SMI), a
wholly owned subsidiary and media corporation.

SMI will create proprietary content from the International Space
Station for broadcast and Internet distribution. SPACEHAB is building
the first commercial broadcasting studio and multimedia production
facility in space, the Enterprise(TM).

SMI owns the exclusive multimedia rights to the content produced
on the Enterprise(TM), it was announced today by SPACEHAB Chairman and
CEO Dr. Shelley A. Harrison at the NAB 2000 Convention in Las Vegas.

SPACEHAB, builders and owners of the first and only private
laboratories, research and stowage facilities used in space by NASA as
well as space agencies from Russia, Europe and Japan along with
several aerospace companies, has partnered with Rocket Space
Corporation (RSCE) Energia of Russia to build, launch and deploy the
module christened Enterprise(TM) on the International Space Station as
a commercial multimedia broadcast studio facility.

SMI is currently developing content and is seeking distribution
deals and strategic alliances with news organizations, networks and
cable organizations through which to release this original

“This exciting opportunity will not only create the first Space
Station private facilities to be operated in Earth orbit, but also
serve as the launchpad for virtual spaceflight for millions of
people,” said Harrison.

Joining Harrison, who will head SMI as the chairman and CEO, are
John Getter and Chris Petersen. Getter, a three time Emmy
Award-winning journalist, will serve as senior vice president of
Creative Services and will develop content and intellectual property
for SMI.

Petersen, a marketing and multimedia veteran, will serve as senior
vice president of Business Development. Prior to joining SMI, Petersen
served as president and CEO of Liebeck-Morris Inc. and News USA, where
he expanded the company’s service line from basic print and radio news
releases to full-scale television production and distribution.

“We have all dreamed about ‘someday’ when we would finally be able
to routinely access and share the adventure and excitement of space
exploration. Well, ‘someday’ is today,” stated Getter.

“This is a tremendous business opportunity that builds on the
legacy of dedication and vision of many nations which have come
together to create the International Space Station. SPACEHAB, Space
Media and our customers will now begin creating the next stage of
human activities in Earth orbit with private sector commerce,” said

Enterprise(TM), the first space habitat offering commercial real
estate in space, will be docked at the Russian side of the
International Space Station (ISS) and equipped for research, stowage,
and television and Internet broadcasting.

In a related move, SMI will develop content based on SPACEHAB’s
exclusive rights to extensive RSCE archives of the Russian space
program. RSCE built and operated Russian spacecraft from Sputnik to
the Mir Space Station.

Available now, these never-before-seen archives will be the basis
of news, educational and other reality-based content, and serve as a
supplement to the highly successful S*T*A*R*S*(TM) (Space Technology
and Research Students) program.

S*T*A*R*S*(TM), which will now operate under SMI, is a commercial
education initiative designed to engage students in science and
technology, and enable them to share in the excitement of space
research and exploration.

New York-based Xceed Inc. , which develops e-business
solutions for a multitude of clients including HBO, Pitney Bowes and
U.S. Chamber of Commerce, is currently spearheading the learning
component of S*T*A*R*S*(TM) by creating a Web portal.

“The ability to share the excitement and adventure of space
travel, the vision and perspective we gain once we look back at the
home planet from somewhere else is one of the most important aspects
of this project,” stated former space shuttle astronaut and
spacewalker Dr. Bernard Harris, vice president and chief scientist for

The broadcast studio on Enterprise(TM) will be the first of its
kind, dedicated to producing original informational, educational and
entertainment programming live from earth orbit.

Enterprise(TM) will extend SPACEHAB’s traditional businesses of
microgravity research support and space station services from the
Space Shuttle ISS and initiate its long-term strategy of addressing
mass markets through broadcasting from space.

The development and distribution of programming, in addition to
the Enterprise(TM) module, will create large Internet and broadcast
audiences, ultimately converting audiences to revenue through
advertising, sponsorship and e-commerce.

Jointly developed by SPACEHAB and RSC Energia, the Enterprise(TM)
is about the size of a small school bus. It will be approximately 10
feet in diameter and 25 feet in length, and will provide an on-orbit
broadcast studio from which high definition television will originate.

Enterprise(TM) is targeted for completion in 2002. Once completed,
Enterprise(TM) will serve as the first celestial entertainment venue
capable of hosting concerts, special events or production facilities
from space.

SPACEHAB is the world’s leading provider of commercial services
for manned and unmanned missions in space. SPACEHAB is the first
company to commercially develop, own and operate habitable modules
that provide laboratory facilities and logistics aboard NASA’s Space
Shuttles. The company also supports NASA astronaut training at Johnson
Space Center in Houston.

Xceed helps companies develop e-commerce and e-business solutions,
improving people and business performance through communications
tools, techniques and technologies. With more than 450 professionals,
Xceed has headquarters in New York City with offices in San Francisco,
Los Angeles, Phoenix, Salt Lake City, Chicago, Atlanta, Dallas,
Denver, London, Amsterdam and Riyadh.

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 TO EDITORS: In the program name S*T*A*R*S* noted in this
release, there are asterisks after each of the letters. This symbol
may not appear properly in some systems.

Contact: SPACEHAB Inc.
Linda Billings,


The Hayley Sumner Company

Michelle Forrest/Pamela Madrid/Hayley Sumner,


Fax: 310/789-3899