SPACEHAB Subsidiary Secures Spacecraft Processing Task Order

Business Wire, June 11, 2008

Astrotech Wins Fourth Task Order Option Under NASA Vandenberg Contract

HOUSTON -- SPACEHAB Inc., (NASDAQ:SPAB), a provider of commercial space services, today announced that its Astrotech Space Operations subsidiary has won a fourth, fully-funded task order under the $35 million Vandenberg Air Force Base (VAFB) indefinite delivery, indefinite quantity (IDIQ) contract. The Company will provide facilities and payload processing services from its VAFB location in support of NASA's Widefield Infrared Survey Explorer (WISE) Mission scheduled to launch in late 2009.

"This mission is very unique in that the payload employs a hydrogen cryostat system designed to keep the telescope optics and detectors extremely cold," explains Astrotech Space Operations General Manager, Don M. White, Jr. "Astrotech provides the only VAFB approved facility hydrogen vent system required for this type of operation."

As announced earlier, previous missions won under the VAFB IDIQ contract included the Ocean Surface Topography, Interstellar Boundary Explorer, and Orbiting Carbon Observatory missions. The Ocean Surface Topography Mission is nearing completion of its processing at Astrotech, anticipating a launch on June 15th. With the award of the WISE Mission, Astrotech has now been awarded all four of the NASA VAFB IDIQ Mission awarded to date.

In other Astrotech news, Astrotech has also been awarded a Task Order against the NASA Florida IDIQ contract, in the amount of $2.5M, to process their Lunar Reconnaissance Orbiter (LRO) and Lunar Crater Observation and Sensing Satellite (LCROSS) spacecraft. The LRO/LCROSS mission is expected to launch from Cape Canaveral by the end of the year. Additionally, Astrotech's Sea Launch operations successfully supported the Galaxy 18 communications satellite processing, leading to a successful launch by Sea Launch on May 21, 2008.

From Titusville, Florida, Vandenberg Air Force Base, California and the Sea Launch Home Port facilities in California, Astrotech provides all support necessary for government and commercial customers to successfully process their satellite hardware for launch, including advance planning; use of unique facilities; and spacecraft checkout, encapsulation, fueling, transport, and remote control through launch.

About SPACEHAB, Incorporated

SPACEHAB is a commercial and entrepreneurial force in the space industry providing a full spectrum of products and services to both the government and private sectors. The Company offers space access and payload integration services, production of valuable commercial products in space, spacecraft pre-launch processing facilities and services, development and extension of space-based products to the consumer market, and program and engineering support ranging from development and manufacturing of flight hardware to large scale government project management.

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.