Company Building Customer Base in Preparation for Apex Demonstration Mission

SPACEHAB, Incorporated, a leading provider of commercial space services, announced today that the Company has been selected by NASA as a finalist for the Agency’s Commercial Orbital Transportation Service (COTS) Demonstrations solicitation. The purpose of this initiative is to prove the capability for providing commercial cargo transportation services to and from the International Space Station while supplying space access to customers worldwide.

“We are elated that NASA appreciates our technical solution and business approach for developing an achievable and sustainable commercial space services program,” said Michael E. Kearney, SPACEHAB President and Chief Executive Officer. “Our plan is to stimulate commercial enterprise in space; develop reliable, cost effective access to low earth orbit; and create a market environment in which commercial space services are available to the Government and private sector customers alike.”

SPACEHAB’s program includes the provision of a non-shuttle-based, end-to-end space access capability, known as Apex, and the associated integration, operations, and mission management services that the Company is renowned for on NASA’s space shuttle and International Space Station programs. “We believe that this confirms NASA’s confidence in SPACEHAB’s ability to meet their transportation requirements while stimulating emerging space markets,” states Mike Bain, SPACEHAB Chief Operating Officer.

The Company’s COTS solution, currently under development, utilizes the expertise of two prominent aerospace veterans, MDA and Ball Aerospace & Technologies Corp., who combined bring readily adaptable systems, technologies, facilities, and expert personnel. Through a patent-pending spacecraft design, SPACEHAB’s Apex vehicles have the ability to ferry equipment and other payload to orbit, rendezvous with and berth to the International Space Station, and dispose of or return equipment and experiments to earth. Apex is designed to evolve to support human transportation, as needed, following space shuttle retirement.

Numerous letters of interest and flight request forms have already been submitted by customers interested in flying their payloads aboard an Apex vehicle. “Apex will serve biotech, pharmaceutical and research institutions, telecommunications customers, and a host of commercial companies,” noted Bain.

NASA’s COTS program, which has approximate funding of $500 million, seeks to implement one or more Space Act Agreements for International Space Station transportation services. SPACEHAB has been notified that negotiations will begin immediately and are expected to be complete in the June or July timeframe, at which time NASA will make its final determination and execute agreements with the selected companies. In the meantime, SPACEHAB is continuing to prepare for its demonstration flight scheduled for launch in 2009.

About SPACEHAB, Incorporated

SPACEHAB, Incorporated (www.spacehab.com) is a leading provider of commercial and government space services with three primary business units. The Flight Services business unit develops, owns, and operates habitat and laboratory modules and cargo carriers aboard NASA’s Space Shuttles for Space Station resupply and research purposes. SPACEHAB’s Astrotech subsidiary provides payload processing support services for both commercial and government customers at company-owned facilities in Florida and California. The Company’s Government Services business unit supports NASA’s Johnson Space Center providing configuration management, product engineering, and support services for both the Space Station and Space Shuttle programs. Additionally, through The Space Store, Space Media provides space merchandise to the public and space enthusiasts worldwide (www.thespacestore.com).

The 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.

Contact:

SPACEHAB, Inc., Houston
Kimberly Campbell, 713-558-5049
campbell@spacehab.com