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FOR IMMEDIATE RELEASE

SPACEHAB STEPS UP PREPARATIONS FOR UPCOMING SPACE SHUTTLE MISSIONS
NASA Approval Will Generate Contract Extension

Houston, Texas, March 19, 2003 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that it is equipped and engaged to support NASA in its aim for a safe return to flight as early as the fall of 2003. SPACEHAB is under contract to provide high-value flight assets and logistics services on three of the next five Space Shuttle missions.

SPACEHAB has been authorized by NASA to submit a request for equitable adjustments under the Research and Logistics Mission Support (ReALMS) contract to cover expenses associated with launch delays on Shuttle missions STS-116 and STS-118. The Company continues with day-to-day operations preparing for these missions that provide important contributions to the completion of International Space Station (ISS) assembly.

NASA has outlined two mission scenarios, the first showing targeted launch dates for STS-116 on December 18, 2003 and STS-118 on May 6, 2004. The second scenario would delay the STS-116 launch until July 24, 2004 and the STS-118 launch until November 13, 2004. For both of these missions, SPACEHAB is contracted to provide a Logistics Single Module and an Integrated Cargo Carrier (ICC) to support resupply requirements for the orbiting space station.

"During SPACEHAB's more than ten years of Shuttle mission performance, we have never missed a ReALMS deliverable or milestone," said SPACEHAB President and Chief Operating Officer, Michael E. Kearney. "This achievement equates to more than 300 on-time deliverable milestones. And with SPACEHAB's current inventory of modules and carriers, we are prepared to support these upcoming Shuttle flights as well as any special Launch On Need missions that may materialize."

Also at the request of NASA, SPACEHAB has been authorized to re-submit the Company's proposal for flight of the ICC on missions STS-122 and STS-125. If accepted, this proposal would extend the ReALMS contract into mid-2006. The ICC is a proven, valuable logistics transportation platform that has flown on five missions to date.

For the STS-114 mission, SPACEHAB, under contract to The Boeing Company, is providing a modified version of this unique cargo carrier, known as the External Stowage Platform 2, or ESP2, that will be deployed and permanently mounted to the ISS. STS-114 will be the first Space Shuttle mission since the tragic loss of the STS-107 Columbia. According to NASA officials, this mission may launch as early as fall 2003.

SPACEHAB remains committed to the ISS Program in support of NASA's initiatives and is able to provide logistics, research, or a combination of both services within a single mission. By fully utilizing the Company's pressurized modules and unpressurized carriers, SPACEHAB is equipped to support NASA in its transition from ISS assembly to operations. SPACEHAB is further prepared to add new functionality to its existing fleet of flight assets to enhance the capabilities already vital to the human spaceflight program.

With more than $100 million in annual revenue, SPACEHAB, Incorporated is a leading provider of commercial space services. The Company develops, owns, and operates habitat and laboratory modules and cargo carriers aboard NASA’s Space Shuttles. Its Johnson Engineering subsidiary provides orbiter crew compartment integration, ISS stowage and configuration management, supports astronaut training, and builds space-flight mockup trainers at NASA's Johnson Space Center in Houston. SPACEHAB’s Astrotech subsidiary provides commercial satellite processing services at facilities in California and Florida. Additionally, through The Space Store, Space Media provides space merchandise to the public and space enthusiasts worldwide (www.thespacestore.com).

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 impact of the recent Columbia tragedy on the Company's existing and future business operations, the amount of any indemnification payments the Company may receive for its RDM, which was lost as part of the Columbia tragedy, 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, the impact of war, uncertainty in government funding, the impact of competition, and other risks detailed in the Company’s Securities and Exchange Commission filings. The Company assumes no obligation to update these forward-looking statements.

 

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