[Back to Latest News]

FOR IMMEDIATE RELEASE

SPACEHAB DECLARED FINALIST ON $100 MILLION SPACE STATION CONTRACT
Two Additional Contract Proposals Currently Under Review by NASA

Houston, Texas, August 12, 2003 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that the Company made the competitive range as a finalist on NASA’s International Space Station (ISS) Mission Integration Contract (MIC).

Based on the Company’s combined expertise in ISS Program support, as well as its space research and logistics services, SPACEHAB believes it is positioned to continue, and expand, support to the ISS Program as it transitions from its current assembly phase to operations and space utilization. The MIC, estimated by NASA at more than $100 million over five years with two additional one-year options, further leverages this capability, utilizing critical skills that include mission integration, ISS stowage integration, and Russian language and logistics services.

SPACEHAB has aggressively pursued this opportunity, establishing a highly credible team, comprised of United Space Alliance, MRE Consulting, and ARES Corporation. In preparation for a potential contract award, this experienced team has begun development of detailed work processes, initiated a hiring program, and implemented key steps that support an effective transition process for contract start.

NASA is consolidating 26 current contracts into seven in an effort to optimize synergies within the ISS Program, encourage competitive sourcing, and improve program accountability. Of the seven procurement opportunities outlined by NASA, SPACEHAB is competing on three of these initiatives including the MIC effort.

NASA is currently reviewing proposals previously submitted for the two other procurements, both of which SPACEHAB is bidding on as a subcontractor. The ISS Program Integration and Control contract, a five-year initiative valued at approximately $18 million for the Company, utilizes SPACEHAB’s core competency in configuration management. The Cargo Mission contract, also a five-year effort, employs the Company’s unique stowage integration, International Partner integration, sustaining engineering of stowage hardware, and program integration capabilities.

“We are optimistic about these contract opportunities and look forward to continuing our support to NASA and the International Space Station Program,” said SPACEHAB President and Chief Executive Officer, Michael E. Kearney. “In the meantime, we are focused on supporting NASA’s return-to-flight activities, providing the Agency with high-value flight hardware and payload integration expertise on three upcoming ISS missions.”

Although there is no assurance that SPACEHAB will be awarded these contracts, NASA tentatively expects to announce awards in October 2003 with contract transition beginning as early as November 2003.

About SPACEHAB
With approximately $100 million in annual revenue, SPACEHAB, Incorporated (www.spacehab.com) 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 for space station resupply and research purposes. Its Government Services business unit provides Space Station and Space Shuttle support services including orbiter crew compartment integration, stowage, and configuration management to 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.

For more information, contact: