Astrotech -Processed Missions Offer Benefits Ranging from Earth Ozone Studies to Direct-to-Home Television Broadcasts

SPACEHAB, Incorporated, a leading provider of commercial space services, announced
that its Astrotech Space Operations subsidiary has been awarded a new contract
by NASA/Kennedy Space Center to provide payload processing services for the
AURA mission at Vandenberg Air Force Base (VAFB), California. Scheduled for
launch in January 2004, AURA is part of the Earth Observing System (EOS)
program to study the Earth’s environment and climate changes.

The contract, valued at approximately $700,000, will provide for Astrotech
processing support from satellite arrival at VAFB through transfer to the
Delta II launch complex. Though the processing and launch of the satellite are
conducted from Vandenberg, the EOS AURA satellite, instruments, and science
investigations are managed by NASA’s Goddard Space Flight Center in Greenbelt,
Maryland. Its mission, expected to last over five years, is designed
exclusively to conduct research on the composition, chemistry, and dynamics of
the Earth’s upper and lower atmosphere employing multiple instruments on a
single satellite. The first and second EOS missions, Terra and Aqua, are
designed to study the land, oceans, and the Earth’s radiation budget.

Astrotech also recently celebrated its contribution to the successful
launch of the Rainbow 1 Direct Broadcast Satellite (DBS) on July 17, 2003, on
board a Lockheed Martin Atlas V launch vehicle from Cape Canaveral Air Force
Station in Florida. Both an industry and Company milestone, Rainbow 1, also
built by Lockheed Martin, was the first commercial, 5-meter class spacecraft
to be processed at Astrotech. Located on the Company’s Titusville, Florida 62-
acre campus, Astrotech’s new Spacecraft Processing Facility (SPF) was the
temporary home of this satellite system and is the only processing facility at
Kennedy Space Center/Cape Canaveral Air Force Station specifically designed to
accommodate the larger satellites for launch on the International Launch
Services Atlas V and Boeing Delta IV families of launch vehicles.

Also on the current mission manifest, Astrotech supported the final
preparations for the August launch of the EchoStar IX/Telstar 13 satellite on
a Sea Launch rocket. Astrotech provides payload processing as well as
facilities operations and maintenance support at the Sea Launch Home Port in
Long Beach, California. Built by Space Systems/Loral of Palo Alto, California,
the EchoStar IX/Telstar 13 spacecraft will join EchoStar’s current satellite
constellation that provides DISH Network customers with hundreds of all-
digital television channels, including interactive TV services, sports
programming, high-definition television, and international programming. In
addition to also having one of the first commercial Ka-band spot-beam payloads
in the United States, this spacecraft also carries the Loral Skynet-owned
Telstar 13 payload, which will provide cable programmers with coverage of
North America. The satellite will launch on a Zenit-3SL rocket from a Mobile
Launch Platform positioned on the equator.

About SPACEHAB, Incorporated

With approximately $100 million in annual revenue, SPACEHAB, Incorporated
( 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 for space station resupply and research
purposes. Its Government Services business unit 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 (

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.