June 23, 1998, Vienna, VA — SPACEHAB, Inc. (NASDAQ: SPAB) and Guigné Technologies Limited (Guigné) of St. John's, Newfoundland, have agreed to form a joint venture to develop and market a revolutionary microgravity processing facility to be operated onboard the Space Shuttle and the International Space Station.

The Joint Venture is structured to give SPACEHAB and Guigné each 50 percent ownership in the development, fabrication, marketing and sales of commercial services using the Space-DRUMS(tm) Facility to all U.S., Canadian and international customers.

Space-DRUMS(tm) (Dynamically Responding Ultrasonic Matrix System) is a small and highly sophisticated furnace that can melt solid materials, process them and retrieve the resulting new solid compound -- all with the materials suspended in weightlessness using sound waves and never touching a container. Known as "containerless processing," this method avoids contaminants and physical defects, enabling large samples to be positioned and held stably in microgravity environments like the Space Shuttle and the International Space Station.

Developed under the sponsorship of the Canadian Space Agency (CSA), this patented space laboratory facility could lead to the creation of some of the world's purest alloys, semiconductors, glass and ceramics to be used for new applications in everything from aircraft parts to computer chips and fiber-optic cable for telecommunications. Other examples of uses for Space-DRUMS(tm) include fluid physics research and protein crystal growth.

David A. Rossi, President of SPACEHAB, Inc., hailed the agreement: "Guigné is a world leader in smart acoustic technologies. By partnering with SPACEHAB, Guigné is now moving into the spaceflight business as well," he said. "The Space-DRUMS(tm) Facility is another excellent complement to our research modules and is already planned to be a research facility on the International Space Station."

"We believe that SPACEHAB is the perfect teammate for our Space-DRUMS(tm) product with their innovative, commercial approach to manned space and international marketing network," said Edward Sloot, Chief Executive Officer for Guigné. "SPACEHAB also provides access to spaceflight opportunities that might be difficult to come by otherwise," he added.

Guigné Technologies and its sister engineering company Guigné International Limited (GIL) provide acoustic design engineering services specializing in very high resolution sonar designs, high speed signal processing with fuzzy logic architectures, containerless acoustic levitation engineering and material processing physics. These applications revolve around the company's unique and proprietary technology called DRUMS(tm) used elsewhere to study Atlantic fish stocks and macrofauna on the ocean floor, much the same way scientists use microscopes to study small-scale biological and ecological phenomena.

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. Space Shuttle mission STS-95, scheduled for October 1998, features SPACEHAB's Single Research Module as the primary payload.