SPACEHAB Cash Position Increases to Over $19 Million Or $1.42 Per Diluted Share

Company’s Position Enables Management to Pursue New Business Opportunities While Continuing to Deliver on Current $173 Million Contract Backlog

SPACEHAB, Incorporated, a leading provider of commercial space services, today
announced that its balance sheet is continuing to improve, allowing for
flexibility to pursue new business opportunities and decrease long-term debt
obligations.SPACEHAB Receives Cash Payments

The most significant recent change in the Company’s liquidity position was
the increase in cash and cash equivalents from $1.81 million, or $0.13 per
diluted share as of December 31, 2002, to $19.3 million, or $1.42 per diluted
share as of February 28, 2003. This was primarily a result of a $17.7 million
payment from SPACEHAB’s insurance company to contribute toward the loss of the
Company’s Research Double Module, which was aboard the STS-107 mission that
ended tragically on February 1, 2003. The Company also indicated that it is in
negotiations with NASA to determine the amount of reimbursement payments from
the Agency for the loss of this module. In the meantime, SPACEHAB maintains a
full fleet of modules and carriers, currently under contract on three of the
next five Space Shuttle missions, that meet NASA’s space research and ISS
resupply requirements.

Subsequent to February 28, 2003, SPACEHAB subsidiary, Astrotech, was
awarded a $750,000 grant from the State of Florida. The funds were received as
reimbursement of expenditures related to the Company’s recent upgrade of the
transportation corridor connecting the Astrotech Florida facilities with the
Kennedy Space Center/Cape Canaveral Air Force Station. The Florida Department
of Transportation provided $600,000 of the funds through its Transportation
Outreach Program with the balance given as matching funds by the Florida
Spaceport Authority.

SPACEHAB Pursues New Business Opportunities

As indicated in a recent press release, SPACEHAB is pursuing a number of
new business opportunities to build on the Company’s $173 million contract
backlog. These opportunities include continued work with NASA, subcontract
services to other major aerospace companies, as well as new contracts
outstanding on a number of projects with NASA and RSC Energia in Russia.

“During the past few years, we have focused on delivering a steady revenue
stream in excess of $100 million, improving our operating cash flow, and
reducing expenses and debt in an effort to position SPACEHAB for a new era of
growth,” said Michael E. Kearney, President and Chief Operating Officer.
“Despite the temporary grounding of the Space Shuttle fleet, SPACEHAB is able
to begin this period of growth while responding to NASA’s requirements for
both the Space Shuttle and International Space Station programs, delivering on
our business backlog, and determining the optimal use for the cash received
from the insurance payment,” concluded Mr. Kearney.

About SPACEHAB

With more than $100 million in annual revenue, SPACEHAB, Incorporated is a
leading provider of commercial space services. The Company develops, owns, and
operates habitat and laboratory modules and cargo carriers aboard NASA’s Space
Shuttles. Its Johnson Engineering subsidiary provides orbiter crew compartment
integration, ISS stowage and configuration management, supports astronaut
training, and builds space-flight mockup trainers at NASA’s Johnson Space
Center in Houston. SPACEHAB’s Astrotech subsidiary provides commercial
satellite processing services at facilities in California and Florida.
Additionally, through The Space Store, the Space Media subsidiary provides
space merchandise to the public and space enthusiasts worldwide
(www.thespacestore.com).

This release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected in such statements. Such risks and
uncertainties include, but are not limited to, whether the Company will fully
realize the economic benefits under its NASA and other customer contracts, the
timing and mix of Space Shuttle missions, the impact of the recent Columbia
tragedy on the Company’s existing and future business operations, the amount
of any indemnification payments the Company may receive for its RDM, which was
lost as part of the Columbia tragedy, the successful development and
commercialization of new space assets, technological difficulties, product
demand, timing of new contracts, launches and business, market acceptance
risks, the effect of economic conditions, the impact of war, uncertainty in
government funding, the impact of competition, and other risks detailed in the
Company’s Securities and Exchange Commission filings. The Company assumes no
obligation to update these forward-looking statements.

    FOR MORE INFORMATION:
     Haris Tajyar                         Julia A. Pulzone
     Managing Partner                     Chief Financial Officer
     Investor Relations International     SPACEHAB, Inc. -- Washington Office
     Phone 818.981.5300                   Phone 202.488.3500
     Fax 818.981.5303                     Toll free 888.647.9543
     htajyar@irintl.com                   pulzone@hqspacehab.com