Company Teams with Prominent Industry Experts to Commercially Provide Space Access Services

Houston, Texas, March 7, 2006 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, announced today that the Company has submitted its proposal to NASA to demonstrate its capability to provide commercial cargo transportation services to and from the International Space Station while providing space access to various customers worldwide.

A team of internationally renowned aerospace veterans, SPACEHAB, MacDonald Dettwiler Associates (MDA) Systems, Inc. and Ball Aerospace & Technologies Corp., propose to jointly develop and demonstrate a next generation commercial space service, called Apex, in response to NASA’s Commercial Orbital Transportation Service (COTS) Demonstrations solicitation. This service offers frequent, reliable and affordable access to space in support of NASA’s space station needs but also opens the door to commercial access to space by corporations, academic institutions and government users around the globe.

“Our Apex team provides a non-shuttle-based, end-to-end space access service that is an extension of the customer-responsive SPACEHAB service proven successful over the previous decade on numerous space shuttle and space station missions,” stated Michael E. Kearney, SPACEHAB President and Chief Executive Officer. “As a pioneer in the development of the early stages of the space commerce market, SPACEHAB is ideally positioned to grow and expand the market via the COTS initiative and related commercial services.”

SPACEHAB is moving forward with Apex maturity to ensure the success of commercial services to orbit while awaiting the results of the NASA competition. “Time is of the essence in developing the technical and market building blocks to initiate this service,” said Kearney. Technical definition and payload services documentation is in full swing in anticipation for the Apex Systems Requirement Review in the fall of this year. The Apex team is refining its business case and pursuing detailed quotes from suppliers to further quantify pricing for early flights.

“Leveraging our success on previous missions to space, we have already begun to price and sell services on future Apex flights,” added Kearney. “We have also been working with numerous other COTS bidders, providing a catalogue of processing, integration and operations capabilities that ensure we are engaged in this significant space commercialization initiative.”

The Apex service features a family of mission-configurable spacecraft capable of achieving orbit on several families of launch vehicles. Through a patent-pending spacecraft design initiated over one year ago, SPACEHAB’s Apex spacecraft have the ability to ferry equipment and other payload to orbit, rendezvous with and berth to the International Space Station and dispose of or return equipment and experiment results. Apex is designed to evolve to support human transportation, as needed, following space shuttle retirement. The spacecraft utilizes readily adaptable systems and technologies, such as the segmented SPACEHAB payload module, a Ball Aerospace satellite bus and MDA’s automated rendezvous and proximity operations subsystem.

About SPACEHAB, Incorporated

SPACEHAB, Incorporated ( 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 (

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.


Kimberly Campbell
Vice President
Corporate Marketing and Communications