SPACEHAB, Incorporated, a leading provider of commercial space services, today
announced that the Company was awarded a new mission under its Research and
Logistics Mission Support (ReALMS) contract with NASA for cargo services to
the International Space Station (ISS).

A modification to the ReALMS contract has been signed, adding the use of
SPACEHAB’s Integrated Cargo Carrier (ICC) to the STS-121 space shuttle mission
scheduled for launch in November 2004. Additionally, the contract was amended
to fund equitable adjustment payments through December 2003 for services being
provided on ISS missions STS-116 (12A.1) and STS-118 (13A.1) due to space
shuttle launch delays.

NASA has directed Lockheed Martin, the recent winner of the
ISS Cargo Mission contract, to establish a contract with SPACEHAB for
continued ICC and logistics module support beginning January 1, 2004. This
allows the ReALMS contract to end on its expiration date without creating any
lapse in service to the Government.

SPACEHAB is supporting the transition of the ISS Program Integration and
Control function as a subcontractor to the ARES Corporation team. This effort
utilizes SPACEHAB’s core competency in configuration management services. This
five-year initiative is currently valued at approximately $22.0 million for
the Company, and if exercised, two additional one-year contract options would
increase the award by an additional $10.0 million.

About SPACEHAB, Incorporated

With approximately $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 for space station resupply and research
purposes. Its Government Services business unit provides Space Station and
Space Shuttle support services including orbiter crew compartment integration,
stowage, and configuration management to 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, Space Media provides space merchandise to the public
and space enthusiasts worldwide (

The statements in this document may contain “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such statements are subject to
risks and uncertainties that could cause actual results to differ materially
from those projected in the statements. In addition to those risks and
uncertainties discussed herein, such risks and uncertainties include, but are
not limited to, whether the Company will fully realize the economic benefits
under its U.S. National Aeronautics and Space Administration (“NASA”) and
other customer contracts, whether NASA and other customers will continue to
utilize the Company’s habitat modules and related commercial space assets,
whether plans to complete the International Space Station (“ISS”) are
fulfilled, continued availability and use of the U.S. Space Shuttle system,
technological difficulties, product demand and market acceptance risks, the
effect of economic conditions, uncertainty in government funding, the impact
of competition, delays and uncertainties in future space shuttle and ISS
programs, resolution of the Company’s indemnification claim with NASA arising
from the loss of the Columbia orbiter and its crew during the STS-107 mission,
and other risks described in reports filed by the Company with the Securities
and Exchange Commission. The Company assumes no obligation to update these
forward-looking statements.

For more information, contact:

Kimberly Campbell
Director of Marketing
Phone 713.558.5049
Fax 713.558.5957

Julia A. Pulzone
Chief Financial Officer
SPACEHAB, Inc. — Washington Office
Phone 202.488.3500
Toll free 888.647.9543