Lease-Back Agreement Ensures Smooth Operations for Space Shuttle Missions

SPACEHAB Monday announced that it has consummated the sale and lease back of its 58,000 square-foot processing facility in Cape Canaveral, FL, in a transaction with Tamir Silvers LLC valued at $4.8 million.

The SPACEHAB Payload Processing Facility (SPPF), located on a commercial site just south of Cape Canaveral, hosts all payload integration activities for the SPACEHAB module and cargo carrier fleet. The Company decided to enter into the sale-lease back transaction in order to further improve liquidity and enhance operating efficiencies.

"This strategically-focused transaction provides us with the flexibility to consolidate or modify our Florida facility operations to reflect support we provide to NASA and other customers as we evolve from space station assembly and resupply efforts to initiatives in support of the Nation's Vision for Space Exploration," said Michael E. Kearney, SPACEHAB President and Chief Executive Officer. "In the meantime, SPACEHAB will maintain its payload integration activities at the SPPF and will continue to manage the property."

"Our Florida team remains focused on supporting NASA with a safe return to flight as we are providing services on four of the next six space shuttle missions," stated Martin L. McLellan, Vice President of Business Development. SPACEHAB expects no interruption in mission preparations and is actively supporting payload integration and astronaut training activities on upcoming space shuttle missions.

The contract terms are for SPACEHAB to lease 100% of the facility for an initial period of five years, with an option period for an additional five years. Currently SPACEHAB has subleases in place that occupy approximately 20% of the available space with another 20% on hand for prospective tenants.

The SPPF offers clean room accommodations and all ground support equipment enabling SPACEHAB's carriers and their payloads to be tested prior to delivery to the nearby Kennedy Space Center for final integration into NASA's space shuttles. Since 1991 SPACEHAB and astronaut crews have conducted testing and training activities at the SPPF to support 18 prior space shuttle and space station missions with preparations currently underway for missions STS-114 and STS-121.

FMI: www.spacehab.com