Vienna, VA, June 18, 1998 – A new marketing agreement between SPACEHAB, Inc. (Nasdaq: SPAB), the leading commercial space services company supporting manned and unmanned missions in space, and INTOSPACE GmbH, a leading European space consultancy, promises to promote increased microgravity research and prepare for scientific and commercial utilization of the International Space Station.

Under the agreement, which was announced by officials from both companies during a June 17 meeting of the INTOSPACE General Assembly, INTOSPACE will market SPACEHAB research payload flight opportunities aboard the Space Shuttle to prospective customers throughout Europe. In addition, SPACEHAB and INTOSPACE will establish a Joint Customer Support Office in The Netherlands to promote increased European and international microgravity research.

The new agreement augments an existing relationship between the two companies in which INTOSPACE has marketed research opportunities on SPACEHAB’s Shuttle-based carriers to users in Europe since 1989. The new agreement furthers that nine-year relationship through the purchase by SPACEHAB of 7.5 percent of INTOSPACE’s share capital -- a level of investment that grants SPACEHAB a seat on the INTOSPACE Steering Board.

INTOSPACE’s marketing efforts are intended to enable SPACEHAB “to attract additional European customers for research payload flight opportunities on our Shuttle-based carriers, particularly customers from the industrial and national government sectors,” SPACEHAB President David Rossi said June 17. “Through that effort, SPACEHAB and INTOSPACE hope to accelerate and expand microgravity research efforts and to lay the groundwork for scientific and commercial use of the International Space Station after its completion early next century.”

“SPACEHAB’s purchase of INTOSPACE shares represents another step in our company's intensified marketing effort in Europe to prepare for International Space Station utilization,” INTOSPACE’s Managing Director, Jurgen K. von der Lippe, said.

Expected to be located near the European Space Agency's European Space and Technology Center in the Dutch town of Noordwijk, the Joint Customer Support Office will begin operations Sept. 1, 1998. Von der Lippe and SPACEHAB’s Vice President for Marketing, Mike Kearney, will be responsible for overall direction of the office.

SPACEHAB, Inc., with its ASTROTECH subsidiary, is the world's leading provider of commercial payload processing services for both astronaut-tended and unmanned payloads. SPACEHAB is the first company to commercially develop, own and operate habitable modules that provide space-based laboratory facilities and logistics resupply aboard the U.S. Space Shuttles to support the people living and working in space.

INTOSPACE GmbH is a private company under German law with headquarters in Hannover, Germany, and an office in Brussels, Belgium. It is owned by 63 shareholders from nine European countries. The company's goal is to provide all the know-how and service needed to advance the development of innovative technologies using the microgravity environment of space.

Anne F. Eisele
Director, Corporate Communications
(703) 821-3000, Ext. 201
eisele@hqspacehab.com