Company Logistics Capabilities on International Space Station Begin in Force

Houston, Texas, February 8, 2005 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that it is on task and ahead of schedule in preparations for the Space Shuttle Discovery’s next mission, STS-114, to the International Space Station (ISS) scheduled for launch in May of this year.

The anticipated mission will include SPACEHAB’s External Stowage Platform 2, or ESP2, a modified version of the Company’s Integrated Cargo Carrier system, which will essentially carry replacement parts, known as Orbital Replacement Units (ORU), to the orbiting ISS. This resupply platform will be attached to the space station’s airlock, and will mark SPACEHAB’s first permanent hardware residence on the ISS.

The ESP2 consists of two major components, the keel yoke assembly and the deployable pallet, the first of which will be delivered tomorrow to NASA’s Kennedy Space Center (KSC) in Florida and installed into the space shuttle. Shortly following this activity, the ORUs will be installed onto the pallet at SPACEHAB’s Payload Processing Facility. The outfitted pallet will then be transported to KSC and integrated into the shuttle by mid-April.

Training operations have commenced, beginning with mission control support activities that will be performed by the SPACEHAB team during the mission. Following is astronaut training for both the STS-114 and STS-121 crew members. The first group will focus on integration and installation of the ESP2 onto the ISS airlock while the second team will be responsible for utilizing any of the spare parts housed on the pallet to support ISS assembly and operations.

“This resupply pallet is just one of the varying logistics capabilities we offer,” said Michael E. Kearney, SPACEHAB President and Chief Executive Officer. “Use of the ESP2 carrier on the STS-114 mission is opening doors to other ISS missions, beginning with STS-118, where similar services will be provided.” SPACEHAB intends to expand its competency for working and living in space to other low Earth orbit programs as well as to NASA’s space exploration initiative to the moon and beyond.

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