Space Media Inc. Joins Forces With United Nations in Effort to Maximize S*T*A*R*S Educational

During the World Space Week celebration at the U.N. headquarters
on Oct. 4, 2000 at 10:00 EST, United Nations Director of the Office
for Outer Space Affairs, Mazlan Othman will announce the launch of the
U.N. S*T*A*R*S(TM) Program in the presence of Dr. Bernard Harris,
Space Media Inc. Vice President.

Under the direction of the Office for Outer Space Affairs, the
United Nations will promote educational projects to increase interest
in space technology among students in developing countries.

S*T*A*R*S(TM) is a commercial education initiative of Space Media
that creates opportunities for students to design and fly scientific
experiments aboard the Space Shuttle and, in the near future aboard
the International Space Station (ISS). Student researchers monitor the
experiment through the Internet while thousands of other students can
“look over their shoulders” virtually while conducting control
experiments of their own. By participating in the program, students
will be able to better understand space science and applications in
the classroom.

“S*T*A*R*S(TM) is an excellent opportunity for us to implement the
recommendations of the 1999 UNISPACE-III conference, to involve school
children and young people progressively in space-related activities.
They will be able to learn more about space science and technology and
their importance to human development,” said Director Mazlan Othman.

Space Media Inc. earned recognition from the educational
community, and was honored by the Smithsonian’s National Air and Space
Museum in Washington, D.C. during Space Day 2000, when the first
S*T*A*R*S(TM) experiment testing the effects of microgravity on
Painted Lady Butterflies was placed on permanent display at the
museum. Currently tens of thousands of students directly participate
in the S*T*A*R*S(TM) experiments during the Space Shuttle STS107
mission which will fly in June 2001.

“The U.N. S*T*A*R*S Program is a great opportunity for students
world-wide, and in developing countries, to participate in the
excitement of space research. Additionally, this partnership affords
corporate and other sponsors the occasion to contribute toward
expanding space education as well,” said Dr. Bernard Harris.

S*T*A*R*S(TM) is operated by Space Media Incorporated, a wholly
owned subsidiary of SPACEHAB . SPACEHAB, with its Space
Media and Astrotech subsidiaries, is the world’s leading provider of
commerce opportunities in space. SPACEHAB is the first company to
commercially develop, own and operate habitable modules that provide
laboratory facilities and logistics resupply aboard Space Shuttle and
the International Space Station. It is developing and will operate the
first commercial module aboard the ISS, the Enterprise(TM). SPACEHAB
also supports astronaut training at Johnson Space Center. SPACEHAB,
with its Space Media and Astrotech subsidiaries, is the world’s
leading provider of commerce opportunities in space.

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.