Spacehab Announces Management Changes

SPACEHAB, Inc. , a
leading provider of commercial space services, today announced that David A.
Rossi, SPACEHAB’s President and a Director, has elected to resign these
positions to pursue other interests.
Michael E. Kearney, Senior Vice
President of Business Development, has been named President of SPACEHAB.

“We thank Mr. Rossi for his many years of service to the Company,” stated
Dr. Shelley A. Harrison, SPACEHAB’s Chairman and Chief Executive Officer.
“We
look forward with great confidence to Mr. Kearney’s service as our President
and Chief Operating Officer.
SPACEHAB enters the New Year with a strong
backlog and an excellent inventory of assets and services proven valuable to
the International Space Station (”ISS“) for its 15 plus years of assembly and
utilization.
We also look forward to the new media and research opportunities
for our Enterprise(TM) commercial module under construction with RSC-Energia.”

Mr. Kearney, who has been with SPACEHAB for six years, has led the
Company’s successful new business development activities since 1998 and has
been instrumental in establishing new product lines and strengthening
international partnerships.
Prior to joining SPACEHAB, Mr. Kearney worked for
the McDonnell Douglas Corporation on the International Space Station after a
twenty-five-year career of excellence in Naval Weapon Systems Acquisition.
Mr. Kearney holds both Bachelors and Masters Degrees in Engineering from the
Navy Postgraduate School, graduating Cum Laude.

Founded in 1984, with more than $100 million in annual revenue, SPACEHAB,
Inc., is a leading provider of commercial space services.
The company is the
first to develop, own, and operate habitat modules and cargo carriers
providing laboratory facilities and resupply capabilities aboard NASA’s Space
Shuttles.
It also supports astronaut training at NASA’s Johnson Space Center
in Houston and builds full-scale space-flight trainers and mockups.
SPACEHAB’s Astrotech subsidiary provides commercial satellite processing
services at facilities in Florida and California in support of a range of
expendable launch vehicles, including Lockheed Martin’s Atlas and Boeing’s
Delta and Sea Launch rockets.
SPACEHAB’s newest strategic growth initiative,
Space Media, Inc. (SMI(TM), a subsidiary), will bring space into homes and
classrooms worldwide with television and Internet broadcasting from the
International Space Station.

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 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, uncertainty in government funding,
the impact of competition, and other risks detailed in the Company’s
Securities and Exchange Commission filings.