"Spacehab, Inc. (Nasdaq: SPAB) and the Canadian Space Agency (CSA) have signed a contract that opens the International Space Station (ISS) to commercial users.

"In exchange for its contribution to the ISS, Canada is entitled to space aboard the Station to conduct experiments. The CSA has committed to commercialize half of its allocated space in partnership with industry, thus positioning Canadian companies for an emerging international market and encouraging the development of new research areas.

"Spacehab has purchased an option granting the use of one of the CSA experiment lockers aboard the ISS beginning May 2001, making Spacehab the only company with direct commercial access to ISS research opportunities. This deal, a global first, positions both Spacehab and the CSA in space commercialization leadership roles.

"Spacehab President David A. Rossi emphasizes that this arrangement is a means of expanding Spacehabs successful commercial business model implemented on Space Shuttle missions and expanding it to the ISS era. "Spacehab is positioned to initiate and develop true commercial use of the ISS, opening the market to a variety of research institutions and investors," said Rossi.

"Mac Evans, President of the Canadian Space Agency, believes this will spark further interest in space enterprise. "It is a good deal for Canada. To exercise its option, Spacehab, an internationally renowned space enterprise, will either partner with a Canadian company or create a Spacehab subsidiary in Canada. We are therefore attracting foreign investment and paving the way for further contracts and growth in Canadian industry."

"Spacehab is providing the CSA with protein crystal growth services aboard an upcoming Shuttle mission in exchange for the ISS option. Spacehab is flying a crystal growth facility built by crystallography experts at the University of Alabama at Birmingham to stimulate pharmaceutical and industry participation in space research. Upon execution of the option, Spacehab and the CSA will negotiate details of the allocation.

"This year, the Canadian Space Agency celebrates ten years of excellence. Since its creation in 1989, the Agency has pursued a mission to develop and apply space knowledge for the benefit of Canadians and humanity.

"Spacehab, with its Johnson Engineering and Astrotech subsidiaries, is the worlds leading provider of commercial payload processing services for manned and unmanned payloads."