Spacehab Awaits Cosmic Collision This 4th of July

Astrotech Subsidiary Supported Processing of NASA’s Deep Impact Spacecraft

Houston, Texas, June 29, 2005 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, announced today its congratulations to NASA in the execution of the Deep Impact mission as the world awaits the highly-anticipated collision with Comet Tempel 1 scheduled for July 4, 2005. SPACEHAB’s Astrotech subsidiary provided key pre-launch processing facilities and services to the mission at its Titusville, Florida spacecraft processing facilities.

“While most of us try to avoid crashing into moving objects, this space wreck is sure to be exciting and insightful as scientists aim to learn the structure and density of the comet,” said John B. Satrom, Senior Vice President and General Manager of SPACEHAB’s Astrotech Space Operations subsidiary. “With the Deep Impact spacecraft having spent eleven weeks at our facilities undergoing pre-flight processing and checkout, we are proud of our role in this mission and look forward to seeing what discoveries unfold regarding the solar system’s formation.”

To support this NASA mission, as well as the 225 plus spacecraft that have passed through Astrotech’s doors, the Company provides all support necessary for the customer to successfully process their spaceflight hardware for launch. Services include advance planning; use of Astrotech’s unique facilities; and support of operations involving spacecraft checkout, encapsulation, fueling, transport, and remote control through launch.

SPACEHAB’s payload processing jewel is its $30 million, 50,000 square foot Astrotech Spacecraft Processing Facility designed to support the processing of five-meter class spacecraft manifested for launch on the Boeing Delta IV and Lockheed Martin Atlas V launch vehicle systems. This high-tech facility is ideally suited to support the next generation of manned and unmanned space vehicles, and SPACEHAB plans to pursue a leading role in executing NASA’s Vision for Space Exploration as well as securing additional commercial programs requiring the Company’s unique processing facilities and proven expertise.

Deep Impact is just one of many anticipated NASA spacecraft that will benefit from Astrotech’s services. The space agency is in the process of negotiating an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with the Company for payload processing services utilizing the Titusville, Florida facilities for upcoming NASA missions through 2010. SPACEHAB anticipates that NASA will require Astrotech facilities and services approximately twice per year under this sole source justification contract.

As for the Deep Impact mission, the spacecraft will deploy a washing machine-sized impactor to smash into the nucleus of the comet at a velocity of 23,000 miles per hour. The result is expected to be a crater, roughly the size of Italy’s Roman Colosseum, on what is only a four-mile diameter high-speed hunk of rock and ice. A flyby craft will pass within 310 miles to record the event and send results to Earth.

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