Houston, Texas, April 10, 2003 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that its Astrotech Space Operations subsidiary has been awarded a new contract by NASA/Kennedy Space Center to provide payload processing support services at its Titusville, Florida facility for two NASA-scientific payloads scheduled for launch in 2004.

New Markets

Previously serving primarily the commercial space sector, Astrotech will be supporting NASA in the processing of the NASA MESSENGER and Deep Impact spacecraft. These four-meter class spacecrafts will be processed in Astrotech’s Florida facility, further utilizing existing capacity of its 62-acre tract complex dedicated to spacecraft processing and payload storage. The missions are scheduled for launch in March 2004 and December 2004 onboard Boeing Delta II launch vehicles from Cape Canaveral Air Force Station (CCAFS).

“We are very excited to have the opportunity to support NASA payloads at our Florida facility, thereby expanding our efforts into this exciting segment of the spacecraft market,” stated John B. Satrom, Senior Vice President and General Manager of Astrotech. “We are actively discussing opportunities with potential customers for other government missions at both the Astrotech Florida and Vandenberg Air Force Base facilities.”

For more than a decade, Astrotech has been the leading provider of payload processing services to the commercial satellite industry and is projecting an increase in business activity at all three of its operating locations during the Company’s coming fiscal year, including further growth in the government sector. Astrotech has long-term commercial contracts for payload processing services in place with The Boeing Company (NYSE: BA), Lockheed Martin (NYSE: LMT), and United States Sea Launch in support of the Atlas, Delta, and Sea Launch programs respectively.

Current Operations

Launch processing preparations are currently ongoing at the Astrotech Florida facility for two upcoming missions. The Asiasat-4 spacecraft, built by Boeing Satellite Systems (BSS), is scheduled to launch April 10, 2003 on an Atlas IIIB launch vehicle from CCAFS. After reaching its final orbit, the spacecraft will provide broadcast, telecommunications, and broadband multimedia services to the Asia Pacific region and direct-to-home broadcast services to Hong Kong.

Astrotech is also supporting the processing of the HellasSat spacecraft, built by Astrium. Owned by the HellasSat Consortium, a joint Greek-Cypriot venture, this spacecraft is the first commercial satellite owned by a Greek company. One of the primary missions of the new satellite is to provide broadcast coverage for the 2004 Summer Olympic Games in Athens. The spacecraft will be launched on the second Atlas V in early May 2003.

Astrotech recently completed processing support for two missions at its Vandenberg Air Force Base facilities in California, the tandem ICESat/CHIPSat mission for NASA, and the U.S. Air Force Coriolis spacecraft under contract to Spectrum Astro. Astrotech has already secured one contract for satellite processing support at Vandenberg during the next twelve months, with active contract opportunities for at least two additional government missions during this period.

About SPACEHAB

With more than $100 million in annual revenue, SPACEHAB, Incorporated (www.spacehab.com) is a leading provider of commercial space services. The Company develops, owns, and operates habitat and laboratory modules and cargo carriers onboard NASA’s Space Shuttles for space station resupply and research purposes. Its Johnson Engineering subsidiary provides Space Station and Space Shuttle support services including orbiter crew compartment integration, stowage, and configuration management to NASA’s Johnson Space Center in Houston. SPACEHAB’s Astrotech subsidiary provides commercial satellite processing services at facilities in California and Florida. 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 impact of the recent Columbia tragedy on the Company’s existing and future business operations, the amount of any indemnification payments the Company may receive for its RDM, which was lost as part of the Columbia tragedy, 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, the impact of war, uncertainty in government funding, the impact of competition, and other risks detailed in the Company’s Securities and Exchange Commission filings. The Company assumes no obligation to update these forward-looking statements.

For more information, contact:

Haris Tajyar
Managing Partner
Investor Relations International
Phone 818.981.5300
Fax 818.981.5303
htajyar@irintl.com

Kimberly Campbell
Director of Marketing
SPACEHAB, Inc.
Phone 713.558.5049
Fax 713.558.5957
campbell@spacehab.com