FOR IMMEDIATE RELEASE

SPACE MEDIA INC.™ ACQUIRES THESPACESTORE.COM TO
OFFER SPACE PRODUCTS TO ENTHUSIASTS ON THE WEB

Former Houston Radio Personality, Mother and Entrepreneur Helms NASA Inspired Web Enterprise

Washington, D.C., July 11, 2000 - As the first acquisition in an aggressive strategy to further broaden their stake in the space media industry, Space Media, Inc.™ (SMI™), has acquired The Space Store™ (www.thespacestore.com). Chris Petersen, SMI™ Senior Vice President of Business Development and Dayna Steele-Justiz, The Space Store™ President describe the move as the latest in a series of actions by SMI™ to connect people and space. Space Media, Inc.™ is a subsidiary media corporation under the SPACEHAB, Inc. (NASDAQ: SPAB) umbrella.

In a step destined to extend the limits of multimedia content and programming, SPACEHAB launched SMI™ last spring to create proprietary content from and about space for television broadcast and Internet distribution. With the added financial backing of SMI™ , the highly successful and entrepreneurial The Space Store™ , which was founded in May 1997 by Steele-Justiz, will continue to offer visitors genuine quality products related to space exploration and learning for purchase on the Web. In celebration of the acquisition, and to commemorate the anniversary of the first lunar landing in July, 1969, The Space Store™ is offering customers a 25% discount on all merchandise during the month of July to customers who key in the password "spacemedia."

Formerly a popular Houston radio personality and talk-radio host, Steele-Justiz aggressively researched other entrepreneurial opportunities she could operate from home after the birth of her first child.

After sending mission patches, NASA hats and other space paraphernalia to friends and colleagues as gifts, Steele-Justiz and her husband NASA test pilot Charlie Justiz were inundated with requests to purchase additional items. Recognizing the demand for space related-gear that could be purchased outside of the NASA Space Centers, the enterprising team founded The Space Store™.

"The Space Store™ has been a personal endeavor from day one, and we pride ourselves in only offering quality products and excellent customer service. I chose to partner with Space Media, Inc.™ because of their commitment to their customers, and I am thrilled to stay on as President of The Space Store™ ," said Steele-Justiz.

Dedicated to space enthusiasts of all ages, especially children, The Space Store™ now carries over 400 different space items including NASA flight suits for adults and kids, space food, real astronaut mission patches, space toys and more. As a mother concerned with safety, Steele-Justiz personally "kid tests" all the products with her own children. All other merchandise, games and space simulation items are also tested by Steele-Justiz' family and friends prior to being offered on the site. Web surfers can also research the latest space shuttle mission, find educational links for kids or download an actual astronaut application on the site.

"Space Media, Incorporated™ connects people with the excitement and adventure of exploring space," said SMI™ Chairman Shelley Harrison. "That excitement is made even more real with the opportunity for customers to purchase collectibles, souvenirs, games and actual space equipment online from SMI™.

"Although a young business, SMI™, earned recognition from the educational community with its highly successful S*T*A*R*S™ (Space Technology and Research Students) program. Recently honored by the Smithsonian's National Air and Space Museum in Washington, D.C., and marketed with the assistance of the National Association of Elementary School Principals, S*T*A*R*S is a commercial education initiative designed to engage students in science and technology while enabling them to share in the excitement of space research and exploration by designing and flying their own experiments in space. More than 500,000 children in 8 countries around the world are active participants in the S*T*A*R*S program.

Aside from its involvement with the S*T*A*R*S™ program, SMI™ is creating proprietary content for broadcast and Internet distribution. SMI™ announced earlier this year that it owns all multimedia rights for the first commercial broadcasting studio and multimedia production facility in space, the Enterprise™. Built by SPACEHAB, the module is to be launched to the International Space Station in 2003.

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 aboard NASA's Space Shuttles. The company also supports NASA astronaut training at Johnson Space Center in Houston.

This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Such risks and uncertainties include, but are not limited to, whether the company will fully realize the economic benefits under its NASA and other customer contracts, the timing and mix of Space Shuttle missions, the successful development and commercialization of new space assets, technological difficulties, product demand, timing of new contracts, launches and business, market acceptance risks, the effect of economic conditions, uncertainty in government funding, the impact of competition, and other risks detailed in the Company's Securities and Exchange Commission filings.