FOR IMMEDIATE RELEASE
SPACEHAB FILES TORT CLAIM FOR LOSSES ON SPACE SHUTTLE MISSION
Houston, Texas, November 8, 2004 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that it has filed a formal claim against NASA under the Federal Tort Claims Act seeking restitution of its losses totaling in excess of $79.7 million resulting from the tragic destruction of the Space Shuttle Columbia on February 1, 2003.
In January 2004 the Company filed a formal proceeding with NASA seeking indemnification under the Company's ReALMS contract in the amount of $87.7 million for the value of the Company's Research Double Module (RDM) and related equipment that was destroyed during the STS-107 Space Shuttle Columbia tragedy. NASA responded to this contract claim on October 5, 2004. NASA's determination states that its liability is limited under the ReALMS contract to $8.0 million. The Company received payment of $8.2 million, which included $0.2 million of interest, from NASA in October 2004. The Company has the right to appeal NASA's decision to deny its claim for indemnification in excess of $8.0 million. The appeal can be filed with either the Armed Services Board of Contract Appeals or the U.S. Court of Federal Claims. SPACEHAB is evaluating its options in appealing NASA's determination.
The claim now made under the Federal Tort Claims Act is separate and in addition to the previously filed claim under SPACEHAB's contract with NASA for which the RDM was provided. Under the Federal Tort Claims Act, SPACEHAB is claiming that NASA's negligence led to the space shuttle accident and the destruction of the RDM and, accordingly, the Company seeks restitution of the loss it suffered regardless of contractual arrangements between NASA and the Company. Under federal tort claim procedures, NASA has statutory deadlines for responding to such claims. In the event that the Company's administrative claim is denied, the Company would have the right to pursue the claim in the Federal district court.
SPACEHAB's claim specifies the following four areas of negligence by NASA that led to the destruction of the Space Shuttle Columbia and the Company's RDM: (i) NASA personnel negligently provided NASA decision-makers with false information that obscured the risks to STS-107 and the RDM, (ii) NASA negligently violated its own rules on foam shedding when compliance with those rules would have prevented the accident, (iii) NASA created organizational barriers that prevented effective communication and analysis of critical safety information and thereby caused the accident, and (iv) NASA negligently failed to comply with accepted engineering standards and thereby caused the destruction of the RDM. These acts and their implicit negligence are documented in the Columbia Accident Investigation Board (CAIB) report which represents the findings of the post-accident investigation. NASA has "embraced the CAIB report and its recommendations" and "fully accepts the Board's findings."About SPACEHAB,
Incorporated
SPACEHAB, Incorporated (www.spacehab.com)
is a leading provider of commercial and government space services with three
primary business units. The Flight Services business unit develops, owns, and
operates habitat and laboratory modules and cargo carriers aboard NASA's Space
Shuttles for Space Station resupply and research purposes. SPACEHAB's Astrotech
subsidiary provides payload processing support services for both commercial
and government customers at company-owned facilities in Florida and California.
The Company's Government Services business unit supports NASA's Johnson Space
Center providing configuration management, product engineering, and support
services for both the Space Station and Space Shuttle programs. Additionally,
through The Space Store, Space Media provides space merchandise to the public
and space enthusiasts worldwide (www.thespacestore.com).
For more information, contact:
Kimberly
Campbell |