SPACEHAB Subsidiary Vying for New Contract at Vandenberg Location

Business Wire, Feb 2, 2007

HOUSTON -- SPACEHAB, Incorporated (NASDAQ:SPAB), a leading provider of commercial space services, announced today that its Astrotech Space Operations (ASO) subsidiary is responding to a NASA Request for Proposal (RFP) soliciting payload processing capabilities for expendable launch vehicles from the Western Range in California.

NASA issued the RFP on January 30, 2007 as a Firm-Fixed-Price (FFP) Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract for a value not to exceed $35.0 million. The multi-mission contract services are targeted to begin in calendar year 2007 running through 2009 with additional options through 2011.

ASO's current facilities, as well as the previously-announced new facility to be constructed in support of the U.S. Government, Office of Space Launch, will be fully capable of meeting NASA's requirements. From the VAFB location, the Company provides a full-service facility for processing satellites and upper stages for NASA, the U.S. Air Force, and a host of commercial satellite payload customers.

"We are excited to respond to NASA's RFP supplying the services Astrotech does best from our Vandenberg home," said SPACEHAB Executive Vice President, Jim Royston. Astrotech also provides satellite processing facilities and services from a nine-building compound in Titusville, Florida as well as the Sea Launch Home Port facilities in California. The Titusville, Florida facilities currently support NASA IDIQ contracts delivering the same payload processing services identified in the Western Range RFP. The three Astrotech sites combined have supported the processing of nearly 250 spacecraft.

About SPACEHAB, Incorporated

Incorporated in 1984, SPACEHAB (www.spacehab.com) is a leading provider of commercial space products and services to NASA, international space agencies, Department of Defense, and private customers worldwide. The Company offers end-to-end space access solutions, space systems development, mission integration and pre-launch processing facilities and services, and large-scale government program support services. From securing a spaceflight opportunity and facilitating the integration of spacecraft and payloads for launch, to developing human habitats, supplying the International Space Station, and coordinating the transport and operation of cargo and experiments to and from orbit, SPACEHAB clearly demonstrates that "We Mean Business in Space."

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.