SPACEHAB Venture Unites Biotech Partners in U.S., Singapore; Cooperative Space Research to Aid Pharmaceutical, Agricultural Industries.

Business Editors/Hi-Tech Writers

SINGAPORE--(BUSINESS WIRE)--Jan. 13, 2000

SPACEHAB, Inc. (Nasdaq:SPAB) today signed a memorandum of understanding (MOU) with the Donald Danforth Plant Science Center of St. Louis, Missouri, the Institute of Molecular Agrobiology (IMA) in Singapore, and Monsanto Company of St. Louis to conduct joint life sciences research in space.

To initiate this collaborative research project, the partners will develop a protein crystal growth experiment to fly aboard the U.S. National Aeronautics and Space Administration's (NASA) Space Shuttle mission STS-107, set for launching in January 2001.

SPACEHAB, the world's leading provider of commercial processing services for manned and unmanned payloads, has flown its modules on 13 Space Shuttle missions. This joint research venture is SPACEHAB's first undertaking with Singapore, the Danforth Center, and Monsanto. The project represents Singapore's first foray into space research. The Danforth Center and Monsanto are also new to space research.

In addition to collaborating on their own space-based experimentation, signatories to the MOU will provide a S*T*A*R*S(TM) (Space Technology And Research Students) Program for students in Singapore and Missouri that will culminate in the flight of an experiment on NASA's Space Shuttle.

SPACEHAB's S*T*A*R*S(TM) Program is a commercial education initiative designed to engage students in science and technology and enable them to share in the excitement of space research and exploration. The Program also promotes cross-cultural cooperation.

U.S. Senator Christopher S. Bond (R-MO) witnessed the MOU signing in Singapore and praised SPACEHAB for bringing the partners together.

"Today's agreement offers the opportunity for our two countries to take an important joint step toward increasing scientific knowledge," said Sen. Bond. "And it gets young people involved." (Sen. Bond chairs the Senate Appropriations Subcommittee with jurisdiction over NASA and National Science Foundation funding.)

Mr. Teo Ming Kian, Chairman of Singapore's National Science and Technology Board (NSTB), who was also present at the signing, remarked that "This is a significant milestone for IMA to be selected as a strategic partner for this exciting space-based life science research. It is testimony to the value-add that Singapore's knowledge infrastructure, supported by NSTB, offers to both the industry and the world scientific community at large."

"The opportunity for our Singapore students to participate in this space program would add to the excitement of research for them. Doing it jointly with students in the U.S. will help in cross-culture educational learning and exchanges and build better understanding amongst them," said Mr. Teo. "This will be an exciting international partnership, and Singapore is honored to be able to participate."

"This joint effort will aid Singapore's efforts to develop a biotechnology industry and allow the Danforth Center and Monsanto to move into space research," SPACEHAB Chairman Dr. Shelley Harrison said at the signing. "Just as importantly, it will allow students in both countries to experience firsthand the excitement of space research."

Researchers will use a High-Density Protein Crystal Growth Facility, provided by the Center for Macromolecular Crystallography at the University of Alabama-Birmingham, for their first collaborative space experiment. On STS-107, the protein crystal facility will be installed on the middeck in conjunction with the inaugural flight of SPACEHAB's new Research Double Module (RDM).

Protein crystal growth has been the single most important commercial use of microgravity to date. Researchers can determine a protein's structure by x-ray diffraction from crystals of that protein; such knowledge is useful in designing new drugs, for example. In the microgravity environment of space, researchers can grow larger and purer protein crystals that yield better diffraction results.

                              BACKGROUND

                         MOU Signing Ceremony
                           January 13, 2000
                               1:30 p.m.
                               Singapore

SPACEHAB, Inc., of Washington, D.C., U.S.A., with its Johnson Engineering and Astrotech subsidiaries, is a global leader in space commerce and the first company to commercially develop, own and operate habitable modules for research and logistics resupply aboard NASA's space shuttles.

The Donald Danforth Plant Science Center of St. Louis, Missouri, U.S.A., a nonprofit organization founded in 1998, is the product of a partnership involving the University of Illinois at Urbana-Champaign, the Missouri Botanical Garden, the University of Missouri-Columbia, Monsanto, Purdue University of Indiana, and Washington University in St. Louis, with support from the Danforth Foundation of St. Louis and the State of Missouri.

Its mission is to increase understanding of plant biology; facilitate the development and commercialization of promising technologies and products; and contribute to the education and training of graduate and postgraduate students, scientists, and technicians from around the world.

Singapore's National Science and Technology Board is the lead government agency to develop "technopreneurship" in Singapore. It aims to promote and develop an environment in Singapore which will lead to a vibrant and thriving sector of high-growth technology-oriented companies.

Singapore's Institute of Molecular Agrobiology was launched in April 1995 under the Singapore National Science and Technology Board (NSTB). It was established in line with the Singapore Government's call to make the country a vibrant research and development hub and a focal point for Asia's growing agrotechnology industries.

The Institute undertakes innovative research at the genetic and molecular levels and provides postgraduate training in the area of agrobiology.

It develops niche technologies and provides commercialization opportunities for agribiotechnology in Asia, thereby facilitating multinational corporations to take up research and development, as well as manufacturing activities in agribiotechnology in Singapore.

Monsanto Company of St. Louis, Missouri, U.S.A., is a global life sciences corporation specializing in agricultural and pharmaceutical products. Monsanto's Integrated Protein Technologies Unit is a leader in the field of biotechnology. Monsanto has been operating in Singapore since 1969.

FOR MORE INFORMATION:

Linda Billings Ms. Chin Lai Keng Director of Communications  Administrative Officer SPACEHAB, Inc. Institute for Molecular Agrobiology Tel: [phone], x. 201 Tel: [phone] Fax: [phone] Fax: [phone] [e-mail] [e-mail]