Strategic Partnership with Zyvex Provides Advances in Micro-Manufacturing Technology

SPACEHAB, Incorporated, a leading provider of commercial space services, announced today that it has entered into a non-reimbursable Space Act Agreement with NASA to facilitate the commercial development and testing of a micro-miniature mass spectrometer for potential use on low earth orbit missions and in NASA’s emerging Exploration Program.

“For human space flight missions, NASA must continually monitor air quality and toxicity levels to ensure the health and safety of the crew,” said Michael E. Bain, SPACEHAB Chief Operating Officer. “NASA desires improved capabilities in this area, but developing, transporting, and installing large, complex detection and classification equipment on-orbit is extremely problematic. We are excited about this opportunity to provide a solution that is small, light-weight, and portable enough to be easily delivered to, and operated on, the space station and anywhere else humans live and work in space.”

In a unique partnership with Zyvex Corporation – a leading molecular nanotechnology company that specializes in micro and nanomanufacturing, micro electro mechanical systems, and nanomaterials – SPACEHAB looks to be a supplier of miniaturized technology to the aerospace community and others. The implementation of the Space Act Agreement is the first step in a plan to support the development of additional micro-manufacturing applications.

Once completed, Zyvex’s mini-mass spectrometer and SPACEHAB’s interface equipment will be the approximate size of a deck of playing cards. Current on-orbit systems weigh approximately 100 pounds and take up the space of a car trunk. The product of this effort has the potential for a 90% weight savings, increased reliability, and costs a fraction of the present technology.

Under the agreement, a ‘brassboard’ system will be developed and tested in a terrestrial-based laboratory by the end of the calendar year. If proven successful, SPACEHAB intends to build an operational unit that could be initially offered as part of the Company’s logistics module capability and also leased or sold to customers individually. SPACEHAB’s logistics module is under contract for use on two International Space Station missions currently scheduled for launch in 2006.

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).

About Zyvex Corporation

Zyvex Corporation, based in Richardson, Texas, is the first molecular nanotechnology company. Zyvex’s vision is to be the leading worldwide supplier of tools, products, and services that enable adaptable, affordable, and molecularly precise manufacturing. Zyvex commercializes nanotechnology to address real-world applications with high growth potential. Zyvex carries its scientific breakthroughs into key commercial applications in the area of materials, tools, and structures.

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.

Contact:

SPACEHAB, Inc., Houston

Kimberly Campbell, 713-558-5049

campbell@spacehab.com