Houston, Texas, July 10, 2006 – SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, announced that the Company’s cargo carrier will be the focus of this morning’s NASA extra vehicular activity, or spacewalk. SPACEHAB’s versatile payload pallet, known as the Integrated Cargo Carrier (ICC), is designed to ferry essential spare parts used in International Space Station construction and operation, and is a key asset being used on the STS-121 Space Shuttle Discovery mission currently underway.

During this seventh day of the mission, veteran astronaut Piers Sellers and first-timer Michael Fossum will don spacesuits and remove numerous pieces of equipment mounted and stored on SPACEHAB’s commercially provided cargo platform. “One of the first tasks to be performed by the astronauts on this spacewalk is to remove a grapple bar and install it on a pump module, both transported to space on our ICC,” said Pete Paceley, SPACEHAB Vice President Shuttle Programs. “This bar allows astronauts Lisa Nowak and Stephanie Wilson to grab the pump module with the station’s robotic arm and move it to SPACEHAB’s on-orbit stowage platform, a modified version of our ICC that was permanently mounted on the International Space Station during the STS-114 mission last year and now serves as a spare parts warehouse.”

The astronauts will also remove a new Transfer Umbilical System Reel Assembly (TUS-RA) from the ICC during the spacewalk. The original TUS-RA, used on the space station’s mobile transporter that travels the length of the ISS and provides electrical and video connections, was inadvertently severed last year. NASA’s new unit is mounted on the top of the ICC for easy access by the crew and will replace the inoperable unit.

SPACEHAB’s Integrated Cargo Carrier can accommodate a variety of payloads on both its top and bottom surfaces. This privately owned carrier system can support delivery of power and data services to payloads and comes in a variety of shapes and sizes to meet NASA’s assortment of cargo transfer needs. The ICC, provided in partnership with Astrium GmbH, has performed flawlessly on six prior space missions and has received numerous crew accolades.

Furthermore, the SPACEHAB team is preparing for NASA’s STS-116 mission scheduled for launch later this year. This flight, also to the International Space Station, will again use the Company’s Integrated Cargo Carrier as well as the SPACEHAB Logistics Single Module. The module is a pressurized aluminum habitat that is housed in the orbiter’s cargo bay, connected to the shuttle’s flight deck by a tunnel, and greatly enhances the onboard working and living environment for the crew. With the ability to store and transport 6,000 pounds of supplies, equipment, and research payloads, SPACEHAB’s module system is essential for supporting International Space Station outfitting and crew provisions.

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.

FOR MORE INFORMATION:

Kimberly Campbell
Vice President
Corporate Marketing and Communications
SPACEHAB, Inc.
713.558.5049
campbell@spacehab.com