SPACEHAB proudly congratulates its partner in space, RSC Energia, with the launch and successful docking of the Zvezda service module, the heart of the International Space Station.

At 8:56 a.m., Moscow time, perched atop a Russian Proton rocket, the station service module, Zvezda, performed 'flawlessly' in a climb towards low-earth orbit and the July 25 rendezvous with modules, Unity and Daria, already in orbit.

Zvezda's journey marks the start of a cascade of rapid expansion for the International Space Station (ISS) as it is the future 'home' and living quarters for the permanent crews who will be assembling and working on the International outpost in space. With the launch of the company's third resupply mission to the ISS in September (STS-106), SPACEHAB, Inc. will play a critical role in the next phase of making long duration spaceflight possible. The company is providing a pressurized Logistics Double Module, an unpressurized Integrated Cargo Carrier, and a SPACEHAB Oceaneering Space Systems box to carry and transfer supplies to outfit the ISS for use by the first long-duration crews.

"We applaud the Russian Aviation and Space Agency for its successful launch of Zvezda, and we applaud the ISS partners for seeing this project to fruition," said SPACEHAB Chairman and Chief Executive Officer, Shelley A. Harrison, following the launch. "The nations of the world are establishing a permanent presence in space, together, and SPACEHAB is prepared to support this effort."

Zvezda's successful launch and 3-stage propulsion and deployment process was orchestrated in Korolev, Russia, by a team of flight controllers from RSC Energia, Russia, and the United States, while yet another team of 20 flight controllers was also on watch at the Johnson Space Center in Houston, Texas, to help monitor the event and keep a close watch on Unity and Daria as they prepared for the July 25 automatic docking sequence.

As planned, on July 25, during a perfectly-choreographed event, the existing seven story orbiting complex leapt over Zvezda and then gently docked with it. The historic docking cleared the way for another 39 U.S. shuttle flights and seven Russian rocket missions that will be needed to launch nearly 100 more major station components.

"We congratulate RSC Energia on the successful completion of Zvezda," said SPACEHAB President and Chief Operating Officer, David A. Rossi, "and we look forward to serving an expanding market for space utilization." Plans are already underway between SPACEHAB and RSC Energia for the construction and future deployment of the Enterprise module scheduled for launch in 2003. This module, to be launched on a Russian rocket and attached to the Russian side of the ISS, will be the world's first commercial real estate in space. Enterprise will also break new ground by housing the world's first commercial television and Internet broadcasting studio in space. Advanced research facilities and stowage amenities are also slated to occupy the module.