| News Release For Immediate Release
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Vienna, VA , August 19, 1996 — SPACEHAB, Inc. (NASDAQ: SPAB) announced today results for its new fiscal year period ended June 30, 1996. Revenue for the nine months ended June 30, 1996 was $56.4 million compared with $46.1 million for the twelve month fiscal year ended September 30, 1995. Net income for the nine months ended June 30, 1996 was $29.8 million or $3.21 per share based on 9.3 million shares outstanding, as compared with $15.8 million or $2.37 per share based on 6.7 million shares outstanding for the fiscal year ended September 30, 1995. The results of operations for this new fiscal period include the revenue and profit associated with the successful completion of two missions during the quarter ended June 30, 1996. The Company's first mission for 1996, completed on April 8, carried more than 4,600 pounds of food, equipment and supplies to the orbiting Russian Space Station Mir. This mission was the first to be completed under the Company's Mir Contract with NASA. SPACEHAB's second mission, completed on June 5, was the fourth mission under the Commercial Middeck Augmentation Module (CMAM) Contract with NASA, which carried 12 microgravity experiments in the promising research fields of biotechnology, semiconductor materials development and polymer growth. During the fiscal year ended September 30, 1995, SPACEHAB completed one mission under the CMAM Contract providing all of the revenue reported for fiscal year 1995. SPACEHAB has contracted backlog for six additional missions, with three missions scheduled in each of fiscal years ending June 30, 1997 and 1998. Backlog for the three missions scheduled in 1997 is $41 million. Negotiations are underway with NASA to establish the price for the three missions awarded to SPACEHAB for 1998. For financial reporting purposes, the Company will compare the nine months ended June 30, 1996 with the twelve months ended September 30, 1995. Had SPACEHAB maintained the September 30 fiscal year end, results of operations for the twelve months ended September 30, 1996 would have included revenue and profit for another mission, assuming completion of the mission scheduled to launch in mid-September 1996 carrying the new SPACEHAB Double Module. In announcing the results, Dr. Shelley A. Harrison, SPACEHAB Chairman and CEO stated, "Fiscal 1996 was a very successful year for SPACEHAB. We completed an initial public offering, conducted two successful missions for NASA, developed a new Double Module, added three missions to our backlog, strengthened our management team and remained focused on our strategic course." Dr. Harrison went on to say, "Increased earnings this year reflect the increase in operations to two missions in the year, which is the first time the Company has achieved this level of operations. The increased number of missions this year reflects the Company's strategic move into a new business segment, space support services, on the first mission of the year. The Company continued to provide services in our core business segment, microgravity research, on our second mission of the year. Our current mission schedule with NASA paces our next six missions under the Mir Contract at approximately four-month intervals beginning with our next mission scheduled to launch in September. The September mission will mark the debut of our new Double Module which can accommodate up to 10,000 pounds of cargo for NASA to transfer to the Russian Space Station Mir." SPACEHAB has enjoyed a compound annual growth rate in net income of 94% since it began flight operations in 1993. As the Company enters its next important phase of research and development and new market asset development, it does not expect to maintain the current profit growth rate. Research and development expenditures originally planned for fiscal year 1996 are getting underway as the Company begins fiscal year 1997. Future results will include costs associated with research and development of new assets that expand the existing Module fleet to include a Double Module for microgravity science and other space infrastructure assets that will be offered to NASA, international governments and commercial customers utilizing the International Space Station (ISS). Investment in research and development is expected to continue for the next four year period in conjunction with the launch and habitation of the ISS. SPACEHAB also believes that new NASA contracts for microgravity science and logistics missions may experience pricing pressure resulting from the competing demands for NASA funds during ISS assembly. "SPACEHAB anticipates many opportunities during the coming era of the International Space Station, which is the largest international scientific effort in the history of humankind. More than a dozen nations are contributing to this multi-billion dollar effort. SPACEHAB intends to continue to utilize its proven strategy to capitalize on these future opportunities by carefully anticipating customer requirements, investing our capital to initiate design and development of new assets, retaining ownership of our assets and then providing innovative, low-cost solutions to customer requirements using fixed-price service contracts," said Dr. Harrison. SPACEHAB is the first company to commercially develop, own and operate habitable modules that provide space-based laboratory research facilities and logistics resupply services aboard the U.S. Space Shuttle system. |