SPACE MEDIA DELIVERS AND RETURNS SPACE STATION PAYLOADS
FOR LEGO, POPULAR MECHANICS

Washington, D.C., May 30, 2001 - Space Media, Inc., a subsidiary of SPACEHAB, Inc. (NASDAQ/NMS: SPAB), today announced that it has delivered payloads to the International Space Station (ISS) and brought them back to Earth for LEGO Systems, Inc., and Popular Mechanics magazine.

These educational and promotional packages were transported to the Russian segment of the ISS aboard the Soyuz TM-32 spacecraft launched April 28 with three cosmonauts, including U.S. space voyager Dennis Tito, bound for the station. The payloads were delivered to the ISS on April 30 and returned to Earth on a Soyuz spacecraft that landed May 6.

Space Media provided the LEGO Company and Popular Mechanics a commercial space services package encompassing payload preparation, launch to the ISS, on-orbit payload procedures (including photographic documentation), and return flight.

Space Media arranged these services with RSC Energia (www.energia.ru) of Korolev, Russia. Energia builds and operates Soyuz rockets and human-rated spacecraft and serves as prime contractor for the Russian segment of the ISS. Energia is SPACEHAB's partner in the Enterprise commercial space station habitat project and a partner with Space Media in developing and marketing space-themed multimedia content.

"We're pleased to provide our customers access to space," said Dr. Shelley A. Harrison, Chairman and Chief Executive Officer of SPACEHAB and Space Media. "We intend to continue broadening access, especially for students, by flying more commercial payloads on the ISS."

Cosmonauts Talgat Musabayev and Yuri Baturin conducted and filmed a Popular Mechanics promotional initiative and educational experiment using LEGO bricks aboard Zvezda on May 3. Following their return to Earth, the payloads were delivered to their owners in the United States on May 23.

The LEGO Company flew an experiment designed to help students learn about weight and mass. Space Media's STARS Academy global education program (www.starsacademy.com) developed this experiment, and the Challenger Center for Space Science Education (www.challenger.org) contributed educational materials for it. In this first-ever toy-based experiment on the ISS, cosmonauts attached a LEGO Life on Mars Red Planet Protector toy set to a mass measurement device and determined the oscillation frequency of the toy in the device in order to gauge its mass in space. Cosmonauts videotaped the experiment for educational uses. The LEGO payload also included a promotional banner, which cosmonauts unfurled and photographed in space, and 300 toy "alien" figures. Most of the figures will be awarded to winners of the LEGO "Life on Mars Survival Challenge National Building Contest" for children aged 5-12.

New York-based Popular Mechanics magazine's promotional package included a copy of the magazine and a banner displaying its name. Cosmonauts opened up the 1-meter-by-0.5-meter banner and the magazine aboard Zvezda and photographed and videotaped the event.

LEGO Systems, Inc. (LSI), of Enfield, CT, is the Americas division of the LEGO Company (www.LEGO.com), a privately held firm based in Billund, Denmark. The LEGO Company is committed to the development of children's creative and imaginative abilities.

Founded in 1902, Popular Mechanics (www.popularmechanics.com) is the first publication to present technology in a popular, easy-to-understand format. The magazine claims a readership of 8.8 million adults and 1.9 million student readers aged 12 to 17.

Space Media, Inc., was created in January 2000 to develop multimedia business for the Enterprise commercial space station habitat project, a joint endeavor of SPACEHAB and Energia. Space Media ultimately intends to produce space-focused content for TV broadcasting and Internet distribution based on exclusive access to Enterprise and Energia's Russian space archives. Space Media operates the STARS Academy program, which enables students around the world to collaborate on space-based experiments via the Internet. In July 2000, Space Media acquired The Space Store (www.thespacestore.com), an online retail business that offers hundreds of space-related items for sale. (The Space Store sells LEGO products such as the Red Planet Protector and other toys in the LEGO Mars series.)

Founded in 1984, with more than $100 million in annual revenue, SPACEHAB, Inc., is a leading provider of commercial space services. The company is the first to develop, own, and operate habitat modules and cargo carriers providing laboratory facilities and resupply capabilities aboard NASA's Space Shuttles. It also supports astronaut training at NASA's Johnson Space Center in Houston and builds full-scale space-flight trainers and mockups. SPACEHAB's Astrotech subsidiary provides commercial satellite processing services at facilities in Florida and California in support of a range of expendable launch vehicles, including Lockheed Martin's Atlas and Boeing's Delta and Sea Launch rockets. Space Media, Inc. (SMI™, a subsidiary), plans to bring space into homes and classrooms worldwide with television and Internet broadcasting from the International Space Station.