Vienna, VA, December 17, 1998 — SPACEHAB, Inc. (Nasdaq: SPAB), the leading commercial space services provider for manned and unmanned payloads, today announced the appointment of Mark A. Kissman as its new Chief Financial Officer (CFO), effective January 1, 1999. Kissman, an 18-year veteran in corporate financial management, succeeds Margaret E. "Peg" Grayson, who has left the Company to pursue other interests.

In his new capacity, Kissman will oversee all SPACEHAB financing operations, including corporate finance, accounting, budgeting, regulatory compliance reporting and the investor relations program. Kissman also will spearhead the Company's financial strategies for mergers and acquisitions.

Kissman comes to SPACEHAB after five years as Vice President and CFO of Giesecke & Devrient America, Inc. (G&D), a U.S. subsidiary of the $800 million Munich-based technology company of the same name. During his tenure at G&D, Kissman orchestrated a successful acquisition campaign that grew subsidiary operations from $35 million and 85 employees to more than $90 million and 700 employees.

Before joining G&D, Kissman served from 1990 to 1993 as Vice President for Finance and Business Development at Software Design & Analysis Inc. in Boulder, Colorado, where he developed business plans for a new line of consulting and training services for defense contractors and large high-technology companies. Previous positions included Director of Finance and Division Controller for Xidex Europe in Germany and Switzerland.

Kissman began his career as a senior accountant at Peat Marwick Mitchell & Co. (now KPMG Peat Marwick). A Certified Public Accountant, he holds a Bachelor's Degree in Accounting and Business Administration from Pennsylvania State University.

Shelley A. Harrison , SPACEHAB Chairman and Chief Executive Officer, applauded Kissman's appointment: "Mark's experience in rapidly growing a small high-technology business while decreasing dependence on government contracts fits perfectly with SPACEHAB’s efforts to expand its commercial services and broaden its customer base. I have every confidence that SPACEHAB and our shareholders will be well served with Mark as CFO," Harrison added.

SPACEHAB, with its Johnson Engineering and Astrotech subsidiaries, is the world's leading provider of commercial payload processing services for manned and unmanned payloads. SPACEHAB is the first company to commercially develop, own and operate habitable modules that provide laboratory facilities and logistics re-supply aboard NASA’s Space Shuttles. The Company also supports NASA astronaut training at Johnson Space Center, Houston.

For more information: