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SPACEHAB Inc. Hardware Successfully Used to Stock Space Station
Company's Newest Cargo-Carrying Asset Enjoys Successful First Flight

Washington, D.C., June 7, 1999 — Cargo-delivery hardware owned and operated by SPACEHAB, Inc., proved instrumental in the Space Shuttle Discovery's just-finished supply mission to the initial elements of the International Space Station (ISS).

Discovery's crew transferred more than 5,000 pounds of supplies for future ISS crews from SPACEHAB's new Integrated Cargo Carrier (ICC) and existing Logistics Double Module, both carried aboard the Shuttle, to the ISS. 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.

NASA used SPACEHAB's ICC, a flatbed pallet about the size of a king-size bed, to transport unpressurized cargo for external placement, including spacewalk tools and external space station hardware. Pressurized cargo for internal placement, such as food, equipment and other vital supplies, was carried in the Company's pressurized Logistics Double Module. Both the ICC and the Module are slated again for use on NASA's next re-supply mission, STS-101, currently scheduled for later this year.

"The successful inaugural flight of the ICC is another example of SPACEHAB's proven business approach, where we invest private capital to create services that support people living and working in space," said SPACEHAB President David A. Rossi.

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.