Full Press Release Details
SPACEHAB DISMISSES RDM CLAIM WITH NASA
Houston, Texas, February 21, 2007 SPACEHAB, Incorporated (NASDAQ: SPAB), a
leading provider of commercial space services, today announced that the Company
has filed for a formal dismissal with prejudice of all litigation against NASA relating
to losses incurred by SPACEHAB as a result of the 2003 Space Shuttle Columbia accident.
In January 2004, the Company initiated a formal proceeding against NASA
in which the Company was seeking damages in the amount of $87.7 million for the
loss of its Research Double Module (RDM) as a result of the Columbia accident. In October 2004, NASA responded to this
claim with the determination that its liability was $8.2 million, including
interest, and paid SPACEHAB this amount. SPACEHAB subsequently filed an appeal
with the Armed Services Board of Contract Appeals and over the past two years,
the two parties have proceeded with preparations for a court hearing planned
The Company also filed a tort claim in November 2004, seeking damages
of $79.7 million for the loss of the RDM, to which the court granted a motion
in June 2006 to stay the case until resolution of the Company s contract claim
information available to the Company, SPACEHAB believes that the potential
benefits that may be achieved by dismissing the claim against NASA, who is the
Company s largest customer, outweigh any potential benefits that may be
achieved by continuing the litigation of claims against the agency. The company
intends to focus its limited resources on current market opportunities and new
business initiatives.
I believe that the dismissal of claims against NASA is in the best
interest of the Company and am very pleased with SPACEHAB s pragmatic business
decision in resolving this complex matter, said SPACEHAB President and CEO
Thomas B. Pickens, III. SPACEHAB is proud to press on in support of NASA and
commercial customers worldwide.
As a result of the claim dismissal, the Company will pay Lloyd s of
London, the insurer of the RDM, $0.5 million.
About SPACEHAB, Incorporated
Incorporated in 1984,
SPACEHAB (www.spacehab.com) is a leading provider of commercial space
products and services to NASA, international space agencies, Department of
Defense, and private customers
worldwide. The Company offers end-to-end space access solutions, space systems
development, mission integration and pre-launch processing facilities and
services, and large-scale government program support services. From securing a
spaceflight opportunity and facilitating the integration of spacecraft and
payloads for launch, to developing human habitats, supplying the International
Space Station, and coordinating the transport and operation of cargo and
experiments to and from orbit, SPACEHAB clearly demonstrates that We Mean
statements in this document may contain forward-looking statements that are
made pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks, trends, and uncertainties that could cause actual results to be
materially different from the forward-looking statement. These factors include,
but are not limited to, continued government support and funding for key space
programs, product performance and market acceptance of products and services,
as well as other risk factors and business considerations described in the
company s Securities & Exchange Commission filings including the annual
report on Form 10-K. Any forward-looking statements in this document should be
evaluated in light of these important risk factors. The Company assumes no
obligation to update these forward-looking statements.
Eva-Marie deCardenas
Corporate Marketing and Communications