Washington, D.C., May 6, 2002 – SPACEHAB Inc. (NASDAQ/NMS: SPAB), a leading
provider of commercial space services, today announced financial results for
the third quarter of fiscal 2002, ended March 31, 2002. SPACEHAB reported a
net profit of $66,000 ($0.01 per basic and $0.00 per diluted share) for the
quarter, compared to a net loss of $3 million ($0.26 per basic and diluted
share) for the third quarter of fiscal 2001.

For the nine months ended March 31, 2002, net loss was reduced to $2.1
million ($0.18 per basic and diluted share), compared to a net loss of $7.2
million ($0.63 per share) for the same period a year ago.

SPACEHAB recorded revenues of $24.7 million for the third quarter of fiscal
2002, compared to $24.5 million for the third quarter of fiscal 2001.
Revenue decreased 11 percent from the second quarter of fiscal 2002 to the
third quarter of fiscal 2002 due to the impact in the second quarter of the
increase in contract value for the equitable adjustment on Space Shuttle
mission STS-107. Gross profit remained constant at 26 percent of revenue
from the second quarter to the third quarter of fiscal 2002. Revenues were
$74.7 million for the nine months ended March 31, 2002, compared to $75.4
million for the nine months ended March 31, 2001.

Third quarter fiscal 2002 earnings before interest, taxes, depreciation and
amortization (EBITDA) were $4.6 million, compared to $5.8 million for the
second quarter of fiscal 2002 and $1.2 million loss for the third quarter of
fiscal 2001. SPACEHAB did not record any tax benefit for the third quarter
of fiscal 2002. SPACEHAB recorded a $1.4 million tax benefit equal to $0.12
per share in the third quarter of fiscal 2001.

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 $311,000 for the
third quarter of fiscal 2002 and $1.4 million for the fiscal year to date.
Excluding SMI’s losses, SPACEHAB core operations would have reported a net
profit of $377,000 for the third quarter of fiscal 2002 and a net loss of
$701,000 for the fiscal year to date. Space Media will fly six student
experiments developed under the STARS program in SPACEHAB’s Research Double
Module on NASA Space Shuttle mission STS-107, now scheduled to launch on
July 19, 2002.

Third quarter fiscal 2002 operating expenses were $4.9 million, down $0.8
million from $5.7 million in the third quarter of fiscal 2001, a result of
company-wide cost reduction efforts. Fiscal 2002 operating expenses included
$254,000 for the third quarter and $1.4 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. The SPACEHAB
team (the Microgravity Alliance) is one of three finalists selected to make
best and final offers, which were submitted on April 19, 2002. MSFC is
expected to award the contract to the successful bidder in mid-June. This
contract has been estimated to be worth more than $500 million over 10
years.

Noncash charges totaled $3.2 million for the third quarter of fiscal 2002
and $10.7 million for the fiscal year to date.

“We’re continuing with the financial recovery plan we adopted in January
2001, cutting costs, containing spending, reducing debt, and taking other
steps including aggressively targeting new core business opportunities as
part of our plan to improve liquidity and return to profitability,” said
SPACEHAB Senior Vice President, Finance and Chief Financial Officer Julia
Pulzone. “We’re pleased to have sustained profitability in the third
quarter.”

During the nine months ended March 31, 2002, SPACEHAB continued to
strengthen its balance sheet, repaying approximately $11.5 million of debt,
including $1.9 million in the third quarter, the majority of which was
funded from operations. Cash and cash equivalents totaled $1.1 million as of
March 31, 2002. Current liabilities have decreased 22 percent to $47.2
million as of March 31, 2002. SPACEHAB has reduced its accounts payable by
$5.3 million compared to the amount outstanding as of June 30, 2001.
SPACEHAB has also reduced its discretionary capital expenditures in fiscal
2002, limiting spending to that required to maintain its core business.

SPACEHAB signed a contract modification with NASA in the third quarter for
two new Logistics Single Module missions, scheduled to launch in calendar
year 2003, with a value of $42.5 million. NASA’s Johnson Space Center has
extended SPACEHAB subsidiary Johnson Engineering’s Flight Crew Systems
Development contract beyond the April 30, 2002, expiration date, approving a
five-month extension plus three one-month options to cover the period from
May 1 through December 31, 2002. This extension provides time for NASA to
restructure and recompete the contract. JE will participate in the
recompetition to continue providing services covered by the contract.
SPACEHAB’s firm contract backlog now totals $216.7 million.

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. Its Johnson Engineering subsidiary 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, will provide customer-focused end-to-end
services to the space research community at NASA’s Marshall Space Flight
Center in Huntsville, Alabama. Additionally, through The Space Store, Space
Media provides space merchandise to the public and space enthusiasts
worldwide (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

Director of Communications

SPACEHAB, Inc. – Washington Office

Phone 202/488-3500 x. 201

Fax 202/488-8251

billings@hqspacehab.com

Julia Pulzone

Chief Financial Officer

SPACEHAB, Inc. – Washington Office

Phone 202/488-3500

Toll free 888/647-9543

pulzone@hqspacehab.com

Note: A Webcast of SPACEHAB’s conference call with investors will be
available after 2 p.m. EDT Tuesday May 7, 2002, at:
http://www.videonewswire.com/event.asp?id=4362