Astrotech Supporting Commercial and Government Launches Coast-to-Coast

SPACEHAB, Incorporated, a leading provider of commercial space services,
today announced that its satellite processing and facility services
subsidiary, Astrotech Space Operations, has been awarded new payload
processing contracts in both the commercial and government sectors.

In the commercial sector, Astrotech received new contracts from
The Boeing Company, to provide payload processing support
services on two upcoming Delta missions. The total value of the two
contracts is approximately $1.75 million.

“These new missions represent a continuation of a longstanding,
successful relationship between Boeing and Astrotech,” stated John B.
Satrom, Senior Vice President and General Manager of Astrotech Space
Operations. “We are pleased to be able to provide our proven
capabilities in support of these exciting missions.”

The Geostationary Operational Environmental Satellite (GOES-N)
mission will be processed at the Astrotech facility in Titusville,
Florida, in preparation for a May 2005 liftoff onboard a Boeing Delta
IV launch vehicle from Cape Canaveral Air Force Station. GOES-N is the
first in a series of next generation weather monitoring satellites
operated by the National Oceanic and Atmospheric Administration. The
system will provide accurate location data of severe storms and other
weather phenomena resulting in more precise warnings to the public.

The second purchase order, for the WorldView mission, calls for
the provision of processing services at the Company’s Astrotech
facility located on Vandenberg Air Force Base, California. Set for a
late 2005 launch onboard a Boeing Delta II vehicle, the WorldView
satellite imaging system offers a wide range of high-resolution Earth
images to customers worldwide.

In the government arena, Astrotech was recently awarded a contract
valued at $2.5 million, also supplying payload processing services, in
support of U.S. Government missions. Satrom said, “Having been at the
forefront of the commercial space industry for over 20 years, we are
excited about providing our unique services to a growing government
business base.”

In related news, Astrotech recently celebrated the successful
launch of NASA’s Deep Impact spacecraft. Processed at Astrotech’s
state-of-the-art payload processing facilities in Titusville, Florida,
Deep Impact is comprised of two parts, a fly-by spacecraft and a
smaller impactor, a copper projectile that is scheduled to collide
with the comet Tempel 1 on July 4, 2005 and record photos and data of
the event to send back to Earth.

To date, Astrotech has successfully processed more than 220
spacecraft and, with its unique five-meter processing capabilities at
its Florida facilities, is positioned to support the next generation
of manned and unmanned space vehicles.

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).

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.