RSC Energia and SPACEHAB Announce Agreement with The Russian Aviation and Space Agency for Enterprise Deployment

A Joint Resolution
Document between the Russian Aviation and Space Agency (RASA) and RSC
Energia (RSCE) confirms agreements to replace the Docking and Stowage
Module of the International Space Station (ISS) with the commercial
module Enterprise(TM).

Enterprise is being designed and built as a commercial venture by
RSCE and SPACEHAB for launch and deployment in
2003. RSCE is the prime contractor for the Russian Segment of the
International Space Station.

“RSC Energia and SPACEHAB are developing the commercial
Multi-Purpose Module (MPM) Enterprise, the use of which has been fully
coordinated with Rosaviakosmos [RASA], and we informed NASA,” said
RSCE Deputy General Designer and ISS Program Director Valery Ryumin.
Mr. Ryumin is an experienced space traveler and veteran of Salyut, Mir
and Space Shuttle missions.

“RSCE President and General Designer Yury Semenov has signed this
Joint Resolution Document with the honorable Yury Koptev, General
Director of Rosaviakosmos, confirming Enterprise as part of the
Russian segment of ISS replacing what was formerly referred to as the
Docking and Stowage Module,” Mr. Ryumin added.

The existence of this document, completed May 19, 2000, was
confirmed today by RSCE in the wake of announcements by other
companies of potential plans to build their own module and attach it
to the ISS. “This should clarify and eliminate any confusion,” Mr.
Ryumin said.

RSCE and SPACEHAB are constructing Enterprise. The first truly
commercial facility to be attached to the ISS, it will serve as a
multimedia production facility as well as supporting scientific
research, station logistics and stowage and acting as a docking
location for visiting Soyuz and Progress supply spacecraft.

“The safety systems, power requirements and capabilities and other
engineering functions of Enterprise will naturally fit seamlessly into
the ISS,” said Boris Sotnikov, RSCE Deputy General Designer.

“The Service Module Zvezda is a key element of the ISS Russian
Segment which enables the functioning of all other Russian ISS
modules. As prime contractor of ISS Russian Segment integration, RSC
Energia has conducted the unique engineering integration of the
Enterprise module into the Russian Segment,” said RSCE President Dr.
Yury Semenov. “We were able to do this work during the final stages of
processing the Service Module and preparing it for launch. Now our top
priority is Enterprise. RSCE is making its best efforts to produce
this module as early as possible.”

According to the Joint Resolution Document signed by Dr. Semenov
and Director Koptev, Enterprise will be launched on a Zenit launch
vehicle and docked to the ISS Russian Segment. Enterprise is currently
under development and scheduled for attachment to the ISS in early
2003.

RSC Energia is one of the most respected and experienced aerospace
manufacturers in the world. RSCE has designed and built spacecraft
ranging from Sputnik to Mir and is prime contractor for the Russian
segments of the ISS. It designs, constructs and supports the Soyuz and
Progress vehicles, the most dependable spacecraft ever designed, which
will carry crews and cargo to the world’s newest orbiting outpost.

Founded in 1984 and with more than $100 million in annual revenue,
SPACEHAB is a leading provider of commercial space services. SPACEHAB
is the first company to commercially develop, own, and operate
habitable modules that provide laboratory facilities and logistics
resupply aboard NASA’s Space Shuttles.

The company also supports astronaut training at NASA’s Johnson
Space Center in Texas and provides commercial satellite processing
services for Boeing’s Delta and Lockheed Martin’s Atlas launch
vehicles near Kennedy Space Center in Florida.

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.