Latest Shuttle Flight Marks 14Th Mission For SPACEHAB; 15th Mission to Follow in August.

Business Editors

WASHINGTON--(BUSINESS WIRE)--May 19, 2000

Today's launch of the Space Shuttle Atlantis from Kennedy Space Center in Florida marked SPACEHAB, Inc.'s (Nasdaq/NMS: SPAB) 14th mission in space and its second resupply mission to the International Space Station (ISS). The Space Shuttle Atlantis is carrying a SPACEHAB Logistics Double Module (LDM), Integrated Cargo Carrier (ICC), and SPACEHAB Oceaneering Space Systems (SHOSS) Box packed with equipment and supplies for the ISS.

This mission assures SPACEHAB's leading position in the growing space station resupply business. The company supported seven missions to resupply the Russian Mir space station and the first ISS resupply mission, which was launched last year. The company recently received a $21.6 million contract award from the National Aeronautics and Space Administration (NASA -- http://www.nasa.gov) to support a third ISS resupply mission, scheduled for launch in September.

"With these resupply missions, the development of our Enterprise(TM) commercial space station module, and the establishment of our new Space Media, Inc. subsidiary, SPACEHAB is opening the door to space commerce in the new millennium," said Dr. Shelley A. Harrison, SPACEHAB's Chairman and Chief Executive Officer. "Since our first Shuttle mission in 1993, we have been busy supporting people living and working in space - the astronauts and cosmonauts who use our modules on Shuttle missions," Harrison said. "Through television and Internet broadcasting from Enterprise(TM), we now will bring this unique experience to worldwide audiences here on Earth."

"We are excited about the successful launch of our 14th mission and the prospect of our 15th mission launching just four months from now," said SPACEHAB President David A. Rossi. "These resupply missions to the ISS are critical to the future of space exploration and development, and they provide SPACEHAB with a recurring source of revenue that is important to our business."

Cargo manifests for missions to Mir were subject to change just weeks before launch. (SPACEHAB carried cargo for both NASA and the Russian Aviation and Space Agency RASA on these missions. For more information on NASA's Space Shuttle and space station plans, see http://spaceflight.nasa.gov/index-m.html.) ISS resupply missions require a similar kind of flexibility. SPACEHAB was able to accommodate numerous changes in the STS-101 cargo manifest as mission plans evolved, including a late request to stow an Orbiter Replacement Unit fan and adaptive hardware in the LDM, a task completed on April 21 (three days before the original STS-101 launch date of April 24). The company also installed a grapple fixture in the SHOSS Box (an equipment stowage container attached to the top of the ICC) at the launch pad -- a program first for the ICC.

SPACEHAB can load up to a ton of late-access cargo once the Shuttle is on the launch pad. "If it can fit through the hatch of an orbiter or a space station module, then we will figure out how to stow it and deliver it," said Rossi.

After Atlantis docks with the ISS, space-walking astronauts will transfer parts for a Russian-built crane from the SHOSS Box to the ISS. Astronauts also will transfer a variety of crew supplies and equipment from the LDM to the ISS, including replacement batteries for the Russian FGB module, a common-berthing-mechanism centerline camera system, crew care packages, an early portable computer system, an IMAX 3-D camera, and exercise devices. SPACEHAB's module is tightly packed for this mission, including overhead and subfloor space. The ICC is fully packed as well, carrying such items as an Articulated Portable Foot Restraint within the SHOSS Box.

Founded in 1984 and with more than $100 million in annual revenue, SPACEHAB is a leading provider of commercial space services. SPACEHAB is the first company to commercially develop, own and operate habitable modules that provide laboratory facilities and logistics resupply aboard NASA's Space Shuttles. The company also supports astronaut training at NASA's Johnson Space Center in Texas and provides commercial satellite processing services for Boeing's (NYSE: BA) Delta and Lockheed Martin's (NYSE: LMT) Atlas launch vehicles near Kennedy Space Center in Florida.

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 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, uncertainty in government funding, the impact of competition, and other risks detailed in the Company's Securities and Exchange Commission filings.

FACT SHEET

May 2000

Logistics Double Module (LDM):

- The SHOSS box is an unpressurized "tool box" attached to the top of the ICC.

- Capacity: up to 400 pounds of tools and other flight equipment.

- Oceaneering Space Systems of Houston is SPACEHAB's partner for development of
the SHOSS box and serves as the Company's integration contractor for SHOSS box
contents.

Integrated Cargo Carrier (ICC):

- The SHOSS box is an unpressurized "tool box" attached to the top of the ICC.

- Capacity: up to 400 pounds of tools and other flight equipment.

- Oceaneering Space Systems of Houston is SPACEHAB's partner for development of
the SHOSS box and serves as the Company's integration contractor for SHOSS box
contents.

SPACEHAB Oceaneering Space Systems (SHOSS) Box:

- The SHOSS box is an unpressurized "tool box" attached to the top of the ICC.

- Capacity: up to 400 pounds of tools and other flight equipment.

- Oceaneering Space Systems of Houston is SPACEHAB's partner for development of
the SHOSS box and serves as the Company's integration contractor for SHOSS box
contents.

SPACEHAB's Role in International Space Station Assembly and Resupply

May 2000

Assembly Flight 1A/R, November 20, 1998: Russian Proton rocket launched Zarya control module. (No SPACEHAB payload.)

Assembly Flight 2A (STS-88), December 4, 1998: U.S. Space Shuttle Endeavour launched Unity connecting module (Node 1) with two Pressurized Mating Adapters that was linked to Zarya. (No SPACEHAB payload.)

Resupply Mission 2A.1 (STS-96), May 27, 1999: SPACEHAB Logistics Double Module (LDM) and Integrated Cargo Carrier (ICC) and SPACEHAB Oceaneering Space Systems (SHOSS) box launched on Shuttle Discovery, carrying two tons of supplies to ISS including Russian Strela cargo crane components.

Resupply Mission 2A.2a (STS-101), April 24, 2000: SPACEHAB LDM, ICC and SHOSS box to be launched on Space Shuttle Atlantis, carrying more than four tons of payload to ISS including Strela crane components and SOAR (Space-Integrated Global Positioning Integrated System (SIGI) Operational Attitude Readiness) technology-demonstration payload.

Assembly Flight 1R, summer 2000: Russian Proton rocket to launch Zvezda service module, providing life support and living quarters for ISS crew.

Resupply Mission 2A.2b (STS-106), August 2000: SPACEHAB LDM, ICC and SHOSS box to be launched on Space Shuttle Atlantis, carrying more than four tons of payload.

Assembly Flight 3A (STS-92), September 2000: U.S. Space Shuttle

Discovery to launch Integrated Truss Structure, third Pressurized Mating Adapter, Ku-band communications system, and attitude-control gyros.

Assembly Flight 2R, October 2000: Russian Soyuz rocket with three crew members including U.S. astronaut William M. Shepherd, initiating permanent habitation of ISS.

Assembly Flight 7A.1 (STS-105), June 2001: SPACEHAB ICC and two SPACEHAB SHOSS boxes to be launched on Space Shuttle Discovery. ICC will carry micrometeorite debris panels for the Russian Zarya module.

NASA and its partners have more than three dozen ISS assembly and resupply missions planned over the next five years. SPACEHAB anticipates playing a role in two to three of these missions per year. NASA's Research and Logistics Mission Support (REALMS) contract with SPACEHAB provides options for numerous Space Shuttle flights.