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SPACEHAB Inc. Debuts Newest Space Hardware Asset
Company Supporting May 27th Shuttle Mission to International Space Station

Washington, D.C., May 21, 1999 — The Space Shuttle Discovery's first supply mission to the initial elements of the International Space Station (ISS), scheduled for liftoff on May 27th, also will be the debut of SPACEHAB's newest flight asset, the Integrated Cargo Carrier (ICC).

The ICC, a flatbed carrier of unpressurized cargo, will fly in tandem with SPACEHAB's flight-proven cargo-carrying, or logistics, module to deliver nearly 6,000 pounds of supplies required by future ISS crews. SPACEHAB, Inc. (Nasdaq: SPAB) is a leading commercial space services provider that has performed similar services for NASA on seven previous re-supply missions to the Russian space station Mir.

SPACEHAB's Logistics Double Module will carry pressurized cargo such as food, equipment and other vital supplies that will be transferred into the ISS, while the ICC will transport un-pressurized items, including spacewalk tools and external space station hardware that will be attached to the outside of the ISS.

The ICC is carried over the tunnel that connects SPACEHAB's Logistics Double Module to Discovery's crew quarters, thereby maximizing use of existing space in the Shuttle cargo bay. The ICC also is slated for use on NASA's next re-supply mission, STS-101, currently scheduled for later this year.

Designed by SPACEHAB engineers, the ICC was built under subcontract by DaimlerChrysler Aerospace AG of Bremen, Germany, and RSC Energia of Korolev, Russia. On next week's mission, the ICC will be used to transport a Russian-built crane and an American-built crane, both to be used in future ISS assembly missions.

In separate news, SPACEHAB announced today that its Johnson Engineering (JE) subsidiary has returned to profitability, having improved its latest performance score on the multimillion dollar Flight Crew Systems Development contract with NASA's Johnson Space Center, Houston.

JE performs a number of critical services for NASA, including managing all training operations and facility engineering at the Neutral Buoyancy Laboratory, NASA's underwater facility where astronauts train for spacewalks and ISS assembly. 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.

Note for Media: High-resolution digital photographs of Discovery's crew training with SPACEHAB's ICC can be accessed at the following NASA Internet site: http://www.ksc.gov/shuttle/missions/sts-96/images

For more information:
Anne F. Eisele
Director, Corporate Communications
SPACEHAB, Inc.
(202) 488-3500, ext. 201
Eisele@hqspacehab.com

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