Agency’s Report to Congress Boldly Empowers Private Enterprise

Houston, Texas, June 6, 2007 – SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, today announced the Company’s formal endorsement of NASA’s recently released Report to Congress Regarding a Plan for the International Space Station (ISS) National Laboratory.

“This is one of the most exciting and welcome announcements NASA could have made at this time,” said SPACEHAB President and CEO, Thomas B. Pickens, III. “As the ISS is nearing completion, NASA’s leadership is staying true to the original vision to provide a platform in space for public-private partnerships to promote major advancements, enhancing and even saving lives here on Earth. SPACEHAB proudly congratulates the Agency for taking such a bold step toward delivering on this promise,” he added.

The Report was submitted to Congress last week in response to direction outlined in Section 507 of the NASA Authorization Act of 2005 (Public Law 109-155). The Report specifically outlines plans to actively utilize the ISS for public/private commercial manufacturing, expanded microgravity science, and a continued commitment to serve the education community.

“SPACEHAB is positioned to be the world leader in on-orbit manufacturing, science, and education accurately reflecting NASA’s goals. This report provides the framework for SPACEHAB, and other private entities, to more effectively execute plans that will deliver products and knowledge that will improve our lives for generations to come,” concluded Pickens.

SPACEHAB further specified that the Company is already active in its support to NASA in the identification of “qualified and committed end-users” of the ISS in order to advance the business case for investment in, as well as the ability to benefit from, the station’s many valuable life science and materials byproducts.

About SPACEHAB, Incorporated

Incorporated in 1984, SPACEHAB (www.spacehab.com) is a leading provider of commercial space products and services to NASA, international space agencies and universities, Department of Defense, and private customers worldwide. The Company offers end-to-end space access solutions, space systems development, mission integration and pre-launch processing facilities and services, and large-scale government program support services.

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:

Eva-Marie deCardenas
Corporate Marketing and Communications
SPACEHAB, Inc.
713.558.5071
edecardenas@spacehab.com