OHB-System GmbH and SPACEHAB, Inc. Agree to Develop Commercial Experiment Facility for the International Space Station.

WASHINGTON--(BUSINESS WIRE)--March 31, 1999--SPACEHAB, Inc. (Nasdaq: SPAB) and OHB-System GmbH today announced the two companies have signed a Memorandum of Understanding to jointly provide commercial life sciences spaceflight services on the Space Shuttle and the International Space Station (ISS).

Under the terms of the agreement, SPACEHAB will work with OHB to establish a biotechnology business enterprise and to operate and upgrade the Commercial Biological Research Unit (CBRU) for use on the Shuttle and ISS beginning in late 2000.

Originally developed by OHB-System under contract of the German Space Agency (DLR) and called the Closed Equilibrated Biological Aquatic System (C.E.B.A.S.), CBRU compromises a habitat for aquatic organisms like fish, snails and plants.

CBRU is under further development in regard to research with special emphasis on biotechnology and biodiversity control in bioreactor systems.

The actual facility enables scientists to conduct various gravity-related experiments in the areas of zoology, botany and developmental biology, as well as in interdisciplinary areas such as scientific research on ecophysiology, bioregenerative life support and artificial ecosystems.

The two companies hope to fly CBRU inside the SPACEHAB Research Double Module on a September 2000 Shuttle mission, STS-107. Potential customers have been contacted in Brazil, Germany, Japan, and the United States. STS-107 is the first dedicated research mission scheduled during ISS assembly. Later, the CBRU is intended for use on the space station itself.

SPACEHAB President David A. Rossi characterized the teaming as "yet another example of the way in which SPACEHAB is paving the way for commercial utilization of the ISS for research and commerce."

"Forming our joint enterprise is an important step towards a commercialization of ISS", said Prof. Manfred Fuchs, President of OHB-System.

"Customers will have more rapid access to space flights and support from highly qualified specialists to improve their experimental success. Our combined experience with the use of space proved hardware for life sciences research will benefit the global user community."

OHB-System GmbH is part of the family-owned and -managed Fuchs-Gruppe located in Bremen, Germany. Fuchs-Gruppe employs a highly qualified group of about 300 individuals in Germany and Italy, approximately 90 percent are scientists and engineers.

The group is active in space- and environmental technology as well as wireless telecommunications. Main activities in space are the development of payloads and small and micro-satellites for the European Space Agency and national agencies.

SPACEHAB, with its Johnson Engineering and Astrotech subsidiaries, is the world's leading provider of commercial payload processing services for manned and unmanned payloads.

SPACEHAB is the first company to commercially develop, own and operate habitable modules that provide laboratory facilities and logistics re-supply aboard NASA's Space Shuttles. The Company also supports NASA astronaut training at Johnson Space Center, Houston.