Washington, D.C. – SPACEHAB, Inc. (NASDAQ/NMS: SPAB), a
leading provider of commercial space services, today announced financial
results for the second quarter of fiscal 2002, ended December 31, 2001.
SPACEHAB reported a net profit of $658,000 ($0.06 per basic and $0.05 per
diluted share) for the quarter, compared to a loss of $2.7 million ($0.24
per basic and diluted share) for second quarter fiscal 2001.

Net loss was $2.2 million ($0.19 per basic and diluted share) for the six
months ended December 31, 2001, compared to a net loss of $4.2 million
($0.37 per share) for the same period a year ago.

Though SPACEHAB’s majority-owned subsidiary Space Media, Inc. (SMI), now has
an equity partner, SPACEHAB is required to record 100 percent of SMI’s
losses for financial reporting purposes. SMI’s losses were $451,000 for
second quarter 2002 and $1.1 million for the fiscal year to date. Excluding
SMI’s losses, SPACEHAB core operations would have reported a net profit of
$1.1 million for second quarter 2002 and a net loss of $1.1 million for the
fiscal year to date.

SPACEHAB recorded revenues of $27.7 million for second quarter 2002, up 16
percent over revenues of $24.0 million for second quarter 2001. Revenue
increased 24 percent from first quarter 2002 to second quarter 2002, and
gross profit improved from 11 percent of revenue in the first quarter to 26
percent of revenue in the second quarter, due to the completion of equitable
adjustment negotiations with NASA for Space Shuttle mission STS-107.
Revenues were $50.0 million for the six months ended December 31, 2001,
compared to $50.9 million for the six months ended December 31, 2000.

Second quarter 2002 earnings before interest, taxes, depreciation and
amortization (EBITDA) were $5.8 million, compared to $1.9 million for first
quarter 2002 and $1.0 million loss for second quarter 2001. SPACEHAB did
not record any tax benefit for second quarter 2002. In second quarter 2001,
SPACEHAB recorded a $1.1 million tax benefit equal to $0.10 per share.

Second quarter 2002 operating expenses were $5.2 million, down $1.0 million
or 15 percent from $6.2 million in second quarter 2001, a result of
company-wide cost reduction efforts. Fiscal 2002 operating expenses
included $618,000 for the second quarter and $1.2 million for the year to
date in non-recurring costs relating to competition for a contract with
NASA’s Marshall Space Flight Center (MSFC) in Huntsville, Alabama. MSFC is
expected to award the contract, estimated to be worth more than $500 million
over 10 years, to the successful bidder later this year.

Noncash charges totaled $4.1 million for second quarter 2002 and $7.5
million for the fiscal year to date.

“In accordance with the financial recovery plan we adopted in January 2001,
we have cut costs, contained spending, sold non-core assets, restructured
and reduced debt, and taken other steps to improve liquidity and return to
profitability,” said SPACEHAB Senior Vice President for Finance and Chief
Financial Officer Julia Pulzone. “We’re pleased to deliver a profitable

During the six months ended December 31, 2001, SPACEHAB strengthened its
balance sheet, repaying approximately $9.6 million of debt, including $4.5
million in the second quarter, the majority of which was funded from
operations. SPACEHAB has also reduced its accounts payable by $5.8 million
since the close of fiscal 2001. Current liabilities have decreased 32
percent to $41.1 million since the beginning of fiscal 2002. In addition,
Astrotech’s construction loan for its new Spacecraft Processing Facility in
Florida was converted to a term loan in December 2001 following completion
of construction.

SPACEHAB concluded negotiations with NASA in second quarter 2002 for a
contract modification valued at $27.4 million to provide for equitable
adjustment payments related to Space Shuttle mission STS-107, covering
launch opportunities through mid-July 2002 and bringing SPACEHAB’s total
equitable adjustment for the mission to $47.3 million. As SPACEHAB
continued work on the STS-107 mission through second quarter 2002, second
quarter results of operations include as revenue a portion of this $27.4
million contract modification.

SPACEHAB continued pricing negotiations with NASA in the second quarter for
two new Logistics Single Module missions now scheduled to launch in 2003.
These missions, expected to comprise an estimated $42 million in new
business, are anticipated to be under contract in third quarter fiscal 2002.

“NASA’s new Administrator Sean O’Keefe is a vocal advocate of competitive
sourcing to cut the agency’s costs, improve efficiency, and promote
innovation,” said SPACEHAB President and Chief Operating Officer Michael E.
Kearney. “We’ve established a track record with NASA as an innovative and
economic provider of fixed-price commercial space services, and we look
forward to a mutually beneficial business relationship with NASA under Mr.
O’Keefe’s direction.”

“We appreciate the perseverance of our employees, customers, and
shareholders during our efforts to return to profitability,” said SPACEHAB
Chairman and Chief Executive Officer Dr. Shelley A. Harrison. “We
especially appreciate recent public recognition by the aerospace industry
magazine Aviation Week & Space Technology in its Feb. 4, 2002, issue. The
editors selected SPACEHAB for their 45th annual Aerospace Laurels, honoring
those who made significant contributions to the field of aerospace in 2001.
SPACEHAB won its Laurel ‘for creativity in keeping the only real commercial
business involved in human space flight afloat in a constantly changing
market that started with shuttle middeck augmentation modules and now
supports ISS logistics.’ Thanks again to our supporters.”

Founded in 1984, with more than $100 million in annual revenue, SPACEHAB,
Inc., 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. It also supports astronaut training
and space station configuration management at NASA’s Johnson Space Center in
Houston and builds space-flight trainers and mockups. SPACEHAB’s Astrotech
subsidiary provides commercial satellite processing services at facilities
in California and Florida. SPACEHAB’s newest strategic growth initiative,
SPACEHAB Huntsville, offers customer-focused end-to-end services to the
space research community at NASA’s Marshall Space Flight Center in
Huntsville, Alabama. SPACEHAB subsidiary Space Media, Inc.(tm), brings
Centpace into homes and classrooms worldwide with interactive education
programs through STARS Academy
(www.starsacademy.com , and space merchandise
from The Space Store (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 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, uncertainty in government funding,
the impact of competition, and other risks detailed in the Company’s
Securities and Exchange Commission filings.

For more information, contact:
Linda Billings						Julia Pulzone
Director of Communications				Chief Financial
SPACEHAB, Inc. -- Washington Office		SPACEHAB, Inc. -- Washington
Phone 202/488-3500 ext. 201				Phone 202/488-3500
Fax 202/488-8251					Toll free

Note: A Webcast of SPACEHAB's conference call with investors will be
available after 2 p.m. EST Thursday February 7, 2002, at:

Tables follow
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except share data)

  		Three Months Ended December 31, (Unaudited)		Six
Months Ended December 31, (Unaudited)
		2001		2000		2001		2000
Revenue	$	27,727	$	23,975	$	50,019	$	50,941
Costs of revenue		20,471		20,836		40,337
Gross profit 		7,256		3,139		9,682
Operating expenses:

  Selling, general and administrative		5,121		6,124
10,057		12,054
  Research and development		125		81		143
     Total operating expenses		5,246		6,205
10,200		12,249
     Income/(loss) from operations		2,010		(3,066)
(518)		(4,668)
Interest expense, net of capitalized interest		(1,308)
(807)		(2,743)		(1,619)
Interest and other income, net		(17)		1
1,124		163
     Income (loss) before income taxes		685		(3,872)
(2,137)		(6,124)
Income tax (expense) benefit		(27)		1,134		(55)
     Net Income (loss)	$	658	$	(2,738)	$	(2,192)	$
Basic earnings (loss) per share:

Net Income (loss) per share - basic	$	0.06	$	(0.24)	$
(0.19)	$	(0.37)
Shares used in computing net income (loss) per share - basic
11,833,602		 11,374,563		 11,740,655
Diluted earnings (loss) per share:

Net income (loss) per share - diluted	$	0.05	$	(0.24)	$
(0.19)	$	(0.37)
Shares used in computing net income (loss) per share - diluted
13,166,936		 11,374,563		 11,740,655

Selected Financial Data by Segment (Unaudited)

(In Thousands)		Three Months Ended December 31,		Six Months
Ended December 31,
		2001		2000		2001		2000
     Flight Services	$	15,416	$	9,352	$	25,018	$
     Johnson Engineering		9,952		13,402
20,127		28,031
     Astrotech Space Operations		1,988		1,103
4,235		2,214
     Space Media, Inc.		239		118		363
     All Other		132		-		276		-

Total Revenue	$	27,727	$	23,975	$	50,019	$

Earnings (loss) before tax

     Flight Services	$	431	$	(510)	$	(2,286)	$
     Johnson Engineering		1,719		(899)
1,236		150
     Astrotech Space Operations		(374)		(861)
1,578		(1,882)
     Space Media, Inc.		(383)		(1,602)		(1,046)
     All Other		(708)		-		(1,619)		-

Earnings (loss) before tax	$	685	$	(3,872)	$
(2,137)	$	(6,124)