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Spacehab, Energia Complete Baseline Design for ISS Commercial Module - Agreement for Use of ISS Docking Port Signed

Press Release From: Spacehab
Posted: Monday, March 5, 2001

SPACEHAB, Inc. and RSC Energia, leading providers of commercial space services, today announced the completion of a baseline design for the Enterprise(TM) commercial space station module project and endorsement of the project by the Russian Space Agency, Rosaviakosmos.

The partners approved the baseline design following a joint review concluded in late December. SPACEHAB and Energia are already at work on detailed design and procurement of long-lead-time materials and components. Fabrication of some components is ready to begin at Energia's Korolev facilities. The partners plan to launch the commercial Enterprise Module to the International Space Station (ISS) in 2003 on a Russian Proton launch vehicle.

In support of this effort, Rosaviakosmos, RSC Energia, and SPACEHAB signed a Joint Resolution Concerning Basic Principles of Implementation of the Multipurpose Module Enterprise as Part of the Russian Segment on the ISS on February 16, 2001. This agreement grants docking and utilization rights to the Enterprise partnership in return for providing functions previously planned for a Russian Docking and Stowage Module (DSM).

The Enterprise project involves development, construction, and operation of a multipurpose module as part of the ISS Russian Segment (ISS RS). For the first time in the history of space exploration and development, a project of this magnitude will be performed on a commercial basis with Russian, U.S., and, potentially, other interested companies. As part of this initiative, SPACEHAB and Energia are actively seeking customers and investors for marketing and business opportunities, leveraging this unique access to space.

Enterprise will become part of ISS RS configuration, replacing the DSM and providing all of the DSM's intended functions. It will also provide additional functions including a docking port for logistics vehicles, propellant resupply via transit fuel lines, and roll control thruster accommodations while also pursuing other commercial objectives. Enterprise is being developed to meet research, stowage, crew support, habitation and multimedia needs. This module provides the flexibility to accommodate a variety of users.

RSC Energia is a leading Russian aerospace company and one of the most experienced developers and manufacturers of aerospace hardware in the world. The organization's engineers have developed and built more than 320 types of spacecraft including the first low-earth orbiting Sputniks, Vostok manned spacecraft, and the orbiting space station Mir. RSC Energia is the prime contractor for the ISS Russian Segment. Space vehicle Soyuz-TM1 and Progress- M1 spacecraft, built by RSC Energia, provide efficient transportation in support of ISS operations.

Founded in 1984, with more than $100 million in annual revenue, SPACEHAB, Inc., is a leading provider of commercial space services. The company is the first to develop, own, and operate habitat modules and cargo carriers providing laboratory facilities and resupply capabilities aboard NASA's Space Shuttles. It also supports astronaut training at NASA's Johnson Space Center in Houston and builds space-flight trainers and mockups. SPACEHAB's Astrotech subsidiary provides commercial satellite processing services at facilities in Florida and California in support of a range of expendable launch vehicles, including Lockheed Martin's Atlas and Boeing's Delta and Sea Launch rockets. SPACEHAB's Space Media, Inc. subsidiary, will bring space into homes and classrooms worldwide with television and Internet broadcasting from the International Space Station.

For more information on these initiatives see http://www.spacehab.com/enterprise and http://www.spacehab.com/icc .

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.

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