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For Immediate Release:

Vienna, VA, July 9, 1998 — The world's leading provider of commercial flight opportunities on board the Space Shuttle and Europe's leading provider of launch opportunities on sub-orbital rockets have agreed to pool their expertise and begin marketing microgravity flight opportunities to customers in the United States and the Pacific Rim.

SPACEHAB, Inc., (Nasdaq: SPAB) and Daimler-Benz Aerospace AG (DASA) agreed June 18 jointly to develop the market for sub-orbital, or sounding, rocket flights for U.S. and Asian researchers and industrial customers looking to benefit from research performed in the microgravity environment of space.

Under the agreement, which was signed in Bremen, Germany, SPACEHAB will take the initiative to develop the market for the utilization of the microgravity research modules built by DASA's Space Infrastructure Unit. The modules will be launched aboard commercially produced sounding rockets, which can provide as much as 18 minutes of microgravity during parabolic flight.

The partnering arrangement "is yet another step in establishing our full-range of microgravity services for commercial and civil customers," said SPACEHAB President and Chief Operating Officer David A. Rossi. "By providing U.S. and Asian customers easy access to microgravity flight opportunities, SPACEHAB hopes to facilitate research into and manufacturing of advanced materials, new pharmaceuticals and more efficient semiconductor thin-films," Rossi said.

"We are extremely interested in providing, on a commercial basis, our proven products and services to the user community of America and the Pacific Rim" said Dr. Stefan Graul, Vice President Orbital Infrastructure of DASA's Space Infrastructure Unit. "We have more than 25 years of experience in this particular field of business and are determined to offer our reliable services also outside of Europe" Graul said.

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.

DASA has been the leading provider of commercial flight opportunities on its industrialized sounding rocket programs for more than 25 years. DASA's Space Infrastructure Business Unit currently markets three sizes of sub-orbital rockets for use in microgravity research: the Mini TEXUS, TEXUS and MAXUS. In addition, DASA also develops the scientific payload to be used for the microgravity experiments and has a wide range of modules available for re-use.

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