Work on Second Return-to-Flight Mission Also On Target

Houston, Texas, April 18, 2005 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, announced today that it is a “GO” for launch on the May 2005 STS-114 space shuttle mission with the rollout of the Company’s External Stowage Platform 2 (or ESP2). This cargo carrier marks a first in the use of large-scale commercial hardware by NASA as it is deployed from the shuttle’s cargo bay to its permanent residence on the International Space Station (ISS).

SPACEHAB’s ESP2, a modified version of the Company’s Integrated Cargo Carrier system, will be permanently attached to the ISS airlock and house critical replacement parts for use by the astronaut crews. It is anticipated that the use of this privately-developed asset on the ISS paves the way for more commercial opportunities during ISS assembly and operations and in support of new exploration initiatives.

“The transfer of our hardware to NASA denotes the culmination of many testing, integration, and training activities,” said E. Michael Chewning, Senior Vice President, SPACEHAB Flight Services. “After the successful crew equipment interface test, the STS-114 astronaut crew offered high praise for the work accomplished by our team.”

Outfitted with a host of space station ‘spare parts’, the ESP2 began its two-hour road trip from SPACEHAB’s Payload Processing Facility in Cape Canaveral to NASA’s Kennedy Space Center where it will be loaded into a large canister with other major hardware elements destined for the orbiting outpost. On April 27 the entire contents of the canister are scheduled for installation into the Space Shuttle Discovery’s cargo bay while on the launch pad, awaiting an expected liftoff sometime between May 15 and June 3.

While all eyes are on this historic return-to-flight mission, the SPACEHAB team is also preparing for the second space shuttle flight, STS-121, scheduled to launch just two months after STS-114. On this mission, SPACEHAB is providing its non-deployable Integrated Cargo Carrier (ICC) system. The STS-121 crew has begun hardware familiarization and training exercises on the ICC, with more preparation scheduled later in the month at SPACEHAB’s Headquarters in Houston and at the Company’s Florida facility.

The ICC provides a robust, modular, and flexible unpressurized pallet resource, nestled in the shuttle’s cargo bay, whose multiple mission configurations can accommodate a variety of payloads. One such SPACEHAB payload on the STS-121 mission is a large storage chest, known as the deployable SHOSS Box, which will be transferred and mounted to the ESP2, previously flown onboard STS-114. This box contains spare parts for future repair and maintenance of the ISS.

The work completed on these missions is opening doors to new SPACEHAB opportunities. For example, the Company is finalizing plans to provide another stowage platform, ESP3, which would be flown on STS-118 and also mounted to the ISS. This cargo carrying pallet, flown in conjunction with SPACEHAB’s Single Logistics Module, is currently scheduled for launch in July 2006.

“Our hardware flexibility and expert team are ready to meet evolving requirements as NASA works to complete ISS assembly and begin on-orbit operations,” stated Michael E. Kearney, SPACEHAB President and Chief Executive Officer. “We look forward to supporting NASA on ISS assembly completion efforts.”

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