SPACEHAB ANNOUNCES THIRD QUARTER RESULTS
Company Recently Awarded Additional Space Station Supply Mission

Washington, D.C., May 3, 2000 - SPACEHAB, Inc. (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced results for its third quarter ended March 31, 2000.

Revenue for the third quarter ended March 31, 2000 was $25.1 million compared to $26.7 million for the same period in fiscal 1999. SPACEHAB's net loss for the quarter was $635,000 or $(0.06) per basic and diluted share, compared to a net loss of $541,000 or $(0.05) per basic and diluted share for same period in fiscal 1999.

For the nine months ended March 31, 2000, SPACEHAB reported revenue of $77.0 million and a net loss of $3.9 million, or $(0.34) per basic and diluted share. For the same period in fiscal 1999, SPACEHAB reported revenue of $78.6 million and a net loss of $2.0 million, or $(0.18) per basic and diluted share.

"Third quarter financial results met our expectations," said SPACEHAB Chairman and Chief Executive Officer Dr. Shelley A. Harrison. "With the Space Shuttle fleet back in operation and yet another mission to the ISS added to our contract with NASA, SPACEHAB should be profitable in our fourth quarter (ending June 30, 2000)."

As announced on April 4, SPACEHAB received a $21.6 million addition to its Research and Logistics Mission Support (REALMS) contract with the National Aeronautics and Space Administration (NASA) for another ISS resupply mission that is scheduled for launch in September 2000. Thus SPACEHAB will be supporting two critical ISS resupply missions (STS-101 and STS-106) this calendar year - the company's 14^th and 15^th Shuttle flights. Throughout the third quarter, SPACEHAB continued preparations for the STS-101 mission, now scheduled to launch on May 18.

"We're excited about our role in three Shuttle missions planned for launch over the next 12 months. Construction of the ISS is advancing toward permanent habitation later this year, and SPACEHAB is playing a key role in space station resupply," said Dr. Harrison. "With these new missions added, continuing development of Enterprise™, and the establishment of our new Space Media™ subsidiary, we anticipate that the coming year will turn out to be a strong year for business opportunities."

SPACEHAB continues to support NASA missions under the REALMS contract. The company is under contract for a research mission (STS-107) scheduled to launch on the Shuttle early next year. SPACEHAB customers NASA, the European Space Agency, the Canadian Space Agency, and others will be conducting more than a dozen experiments on this flight. NASA recently added a new research mission to its Shuttle manifest for 2001, and SPACEHAB is anticipating that NASA will exercise an option on the REALMS contract to support this mission. As space station assembly proceeds, the company expects to support more resupply missions as well. SPACEHAB's REALMS contract enables NASA to manifest new research flights or ISS resupply missions as needed.

Revenues by business segment for the current quarter were $9.0 million for SPACEHAB modules, $2.5 million for Astrotech and $13.6 million for Johnson Engineering. This compares to $9.0 million, $2.2 million and $15.5 million, respectively, for the same period a year ago.

Revenues by business segment for the nine-month period were $25.4 million for SPACEHAB modules, $6.6 million for Astrotech and $45.0 million for Johnson Engineering. These results compare to $29.8 million, $7.0 million and $41.8 million, respectively, for the same nine-month period a year ago.

Earnings or loss before tax for the third quarter fiscal 2000 for these same segments were $0.4 million loss for the SPACEHAB module business, $0.2 million loss for Astrotech and $0.04 million loss for Johnson Engineering versus $0.4 million loss, $0.7 million loss and $0.6 million income, respectively, for the third quarter fiscal 1999.

Earnings or loss before tax for the nine months ended March 31, 2000, for these same segments were $4.3 million loss for the module business, $1.2 million loss for Astrotech and $0.06 million loss for Johnson Engineering versus $1.2 million loss, $0.7 million loss and $0.3 million loss respectively for the same nine-month period a year ago.

SPACEHAB's Astrotech subsidiary processed two commercial satellites for launch during the quarter. Also in the third quarter, Astrotech received two commercial payloads for launch in the fourth quarter of fiscal 2000.

SPACEHAB's Johnson Engineering subsidiary continued to provide crew training for upcoming ISS assembly flights and also successfully delivered to NASA a training version of the space station robotic arm. (To see pictures of the robot arm in operation at NASA's Neutral Buoyancy Laboratory, see http://www.spacehab.com/ssrms.)

Founded in 1984 and with more than $100 million in annual revenue, SPACEHAB is the world's leading provider of commercial services for manned and unmanned missions in space. SPACEHAB is the first company to commercially develop, own and operate habitable modules that provide laboratory facilities and logistics resupply aboard NASA's Space Shuttles. The company also supports NASA astronaut training at the Johnson Space Center in Houston, Texas and provides commercial satellite processing services for Boeing's (NYSE: BA) Delta and Lockheed Martin's (NYSE: LMT) Atlas launch vehicles in North America.

Table follows

FOR MORE INFORMATION:

Julia Pulzone
Senior Vice President, Finance
and Chief Financial Officer
SPACEHAB, Inc.
(202) 488-3500 x236
pulzone@hqspacehab.com

Linda Billings
Director of Communications
SPACEHAB, Inc.
(202) 488-3500 x201
billings@hqspacehab.com

William Dunk
William Dunk Partners
(919) 929-4100
advisors@beecom.net