Company to Deliver and Return Critical Components During Upcoming STS-118 Mission

SPACEHAB, Incorporated (NASDAQ:SPAB – News), a leading provider of commercial space services, today announced the successful delivery of its Logistics Single Module (LSM), manifested for flight on the upcoming STS-118 mission, to the Kennedy Space Center (KSC) in Cape Canaveral, Florida from the SPACEHAB Payload Processing Facility (SPPF), also located at the Cape.

Last week, the Company’s External Stowage Platform 3 (ESP3), scheduled to be deployed from the shuttle’s cargo bay and permanently attached to the International Space Station (ISS) during STS-118, was also successfully turned over to NASA for final integration with the space shuttle Endeavor. The ESP3, successor to the highly acclaimed ESP2, which was attached to the ISS during the STS-114 mission in 2005, was designed to provide another permanent spare parts storage facility for the growing orbiting laboratory and its crew members.

During Endeavor’s STS-118 mission, currently scheduled for August 9, 2007, SPACEHAB’s pressurized logistics module will ferry approximately 3,200 pounds of cargo for delivery to the space station, including several major equipment spare parts, food and clothing for visiting crews, as well as various experiments.

“The final turnover of our flight hardware for this complex ISS assembly and logistics mission is the result of years of work and a myriad of testing, analysis, and training,” explains Pete Paceley, Vice President, SPACEHAB Flight Services. “We are extremely proud of our team and the continued dedication they have exhibited in providing our NASA and Lockheed Martin customers with SPACEHAB’s signature professionalism and customer service.”

Returning home with the shuttle crew, SPACEHAB’s LSM will bring back to Earth approximately 3,000 pounds of cargo including excess equipment and a high priority Department of Defense payload known as the “MISSE PEC.” This suitcase-sized test bed was attached to the outside of the ISS during STS-121 in July 2006 and contained approximately 875 specimens of various materials, representing 40 different investigators including NASA centers, military space organizations, aerospace contractors and manufacturers. The containers exposed hundreds of potential space construction materials and solar cells to the harsh environment of space. Upon STS-118’s return, the equipment will undergo post flight analysis, providing investigators with data to design a stronger, more durable spacecraft. “The complexities of sending cargo and science to space is a very specialized capability for which SPACEHAB professionals are highly proficient, recognized in the industry, and represent the exact skills needed in the Company’s new direction of on-orbit manufacturing and processing,” said SPACEHAB CEO, Thomas B. Pickens, III. “It is an absolute delight to work with this highly trained team that has had such a vital role in helping deliver permanent hardware and cargo to the ISS, a designated U.S. National Laboratory, in the upcoming STS-118 mission.”

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 and universities, 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.

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
Corporate Marketing and Communications
Eva-Marie deCardenas, 713-558-5071
edecardenas@spacehab.com