Company Delivers Commercial Flight Hardware to Kennedy Space Center

Houston, Texas, May 11, 2006 – SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, announced today that it has been authorized to begin integration and operations activities for its logistics module in support of NASA’s STS-118 space shuttle mission to the International Space Station.

“With NASA preparing to return the space shuttle to flight this summer, we are pleased to be starting work on another commercial cargo carrier for the International Space Station.” stated E. Michael Chewning, Senior Vice President, SPACEHAB Flight Services. “With authority to proceed on the STS-118 module processing activities, SPACEHAB’s team now has five of its commercial cargo carriers in flow assisting space station logistics and resupply needs.”

The Company’s single module, used on seventeen missions prior to STS-118 (including the STS-116 flight scheduled for liftoff this coming December), is about the size of four rows in a Boeing 737 and is mounted in the shuttle cargo bay. Accessible via a short tunnel from the space shuttle’s orbiter docking system, the single module will hold up to 6,000 pounds of equipment and provisions set for delivery to the space station and used by the Expedition crews that live for extended periods in space.

On this twenty-second space station assembly and operations flight, SPACEHAB will also be providing a deployable cargo carrier, known as ESP3. This platform will be transferred and mounted to the International Space Station for storage of on-orbit spares. The Company’s integration and operations work is being performed under subcontract to Lockheed Martin Corporation, NASA’s prime contractor for the Cargo Mission Contract.

SPACEHAB celebrated the completion of another major mission milestone this week, as the Company successfully delivered a fully outfitted Integrated Cargo Carrier to the Kennedy Space Center. This specialized pallet will ferry much needed equipment to the International Space Station on the next space shuttle mission, STS-121, set for launch in July.

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