Spacehab, has received notification from NASA that the Agency has received the Company's formal contract claim and has initiated a review and internal audit of the amounts specified. NASA stated that it intends to advise Spacehab of its findings on June 24, 2004.

As reported January 20, 2004, Spacehab submitted a detailed claim to NASA in the amount of $87.7 million for recovery of its Research Double Module (RDM) investment.

The module and related equipment were destroyed during the STS-107 Space Shuttle Columbia accident March 1, 2003 when the orbiter broke up over Texas on reentry.