FOR IMMEDIATE RELEASE<br /><br />SPACEHAB DECLARED FINALIST ON $100 MILLION SPACE STATION CONTRACT<br />Two Additional Contract Proposals Currently Under Review by NASA<br /><br /><br />Houston, Texas, August 12, 2003 - SPACEHAB, Incorporated (NASDAQ/NMS: SPAB),<br />a leading provider of commercial space services, today announced that the<br />Company made the competitive range as a finalist on NASA's International<br />Space Station (ISS) Mission Integration Contract (MIC).<br /><br />Based on the Company's combined expertise in ISS Program support, as well as<br />its space research and logistics services, SPACEHAB believes it is<br />positioned to continue, and expand, support to the ISS Program as it<br />transitions from its current assembly phase to operations and space<br />utilization. The MIC, estimated by NASA at more than $100 million over five<br />years with two additional one-year options, further leverages this<br />capability, utilizing critical skills that include mission integration, ISS<br />stowage integration, and Russian language and logistics services.<br /><br />SPACEHAB has aggressively pursued this opportunity, establishing a highly<br />credible team, comprised of United Space Alliance, MRE Consulting, and ARES<br />Corporation. In preparation for a potential contract award, this experienced<br />team has begun development of detailed work processes, initiated a hiring<br />program, and implemented key steps that support an effective transition<br />process for contract start.<br /><br />NASA is consolidating 26 current contracts into seven in an effort to<br />optimize synergies within the ISS Program, encourage competitive sourcing,<br />and improve program accountability. Of the seven procurement opportunities<br />outlined by NASA, SPACEHAB is competing on three of these initiatives<br />including the MIC effort.<br /><br />NASA is currently reviewing proposals previously submitted for the two other<br />procurements, both of which SPACEHAB is bidding on as a subcontractor. The<br />ISS Program Integration and Control contract, a five-year initiative valued<br />at approximately $18 million for the Company, utilizes SPACEHAB's core<br />competency in configuration management. The Cargo Mission contract, also a<br />five-year effort, employs the Company's unique stowage integration,<br />International Partner integration, sustaining engineering of stowage<br />hardware, and program integration capabilities.<br /><br />"We are optimistic about these contract opportunities and look forward to<br />continuing our support to NASA and the International Space Station Program,"<br />said SPACEHAB President and Chief Executive Officer, Michael E. Kearney. "In<br />the meantime, we are focused on supporting NASA's return-to-flight<br />activities, providing the Agency with high-value flight hardware and payload<br />integration expertise on three upcoming ISS missions."<br /><br />Although there is no assurance that SPACEHAB will be awarded these<br />contracts, NASA tentatively expects to announce awards in October 2003 with<br />contract transition beginning as early as November 2003.<br /><br />About SPACEHAB<br />With approximately $100 million in annual revenue, SPACEHAB, Incorporated<br />(
www.spacehab.com) is a leading provider of commercial space services. The<br />Company develops, owns, and operates habitat and laboratory modules and<br />cargo carriers aboard NASA's Space Shuttles for space station resupply and<br />research purposes. Its Government Services business unit provides Space<br />Station and Space Shuttle support services including orbiter crew<br />compartment integration, stowage, and configuration management to NASA's<br />Johnson Space Center in Houston. SPACEHAB's Astrotech subsidiary provides<br />commercial satellite processing services at facilities in California and<br />Florida. Additionally, through The Space Store, Space Media provides space<br />merchandise to the public and space enthusiasts worldwide<br />(
www.thespacestore.com).<br /><br />This release contains forward-looking statements that are subject to certain<br />risks and uncertainties that could cause actual results to differ materially<br />from those projected in such statements. Such risks and uncertainties<br />include, but are not limited to, whether the Company will fully realize the<br />economic benefits under its NASA and other customer contracts, the timing<br />and mix of Space Shuttle missions, the impact of the recent Columbia tragedy<br />on the Company's existing and future business operations, the amount of any<br />indemnification payments the Company may receive for its RDM, which was lost<br />as part of the Columbia tragedy, the successful development and<br />commercialization of new space assets, technological difficulties, product<br />demand, timing of new contracts, launches and business, market acceptance<br />risks, the effect of economic conditions, the impact of war, uncertainty in<br />government funding, the impact of competition, and other risks detailed in<br />the Company's Securities and Exchange Commission filings. The Company<br />assumes no obligation to update these forward-looking statements.<br /><br />For more information, contact:<br /><br />Haris Tajyar<br />Managing Partner<br />Investor Relations International<br />Phone 818.981.5300<br />Fax 818.981.5303<br />htajyar@irintl.com Kimberly Campbell<br />Director of Marketing<br />SPACEHAB, Inc.<br />Phone 713.558.5049<br />Fax 713.558.5957<br />campbell@spacehab.com
