Spacehab Subsidiary Awarded $3 Million Contract

Astrotech Partnership with United Launch Alliance Atlas Program Nears 20 Years

Houston, Texas (March 7, 2007) - SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, announced today that its Astrotech Space Operations subsidiary has been awarded a one-year contract extension for payload processing services by United Launch Alliance (ULA).

The contract is valued at $3.3 million for support of Atlas missions during the one-year period. Through the extension, Astrotech will continue to provide payload processing services and specialized facilities for ULA's Atlas expendable launch vehicle program from Astrotech's bi-coastal locations - Titusville, Florida and Vandenberg Air Force Base (VAFB), California. The original contract included the period of December 31, 1999 through December 31, 2006 with four one-year option periods for 2007 - 2010.

"Astrotech has readily supported the commercial Atlas program since 1989 and is pleased to have the opportunity to continue this long-term relationship," said Don White, Astrotech General Manager. The Company's nine building compound in Titusville includes a Spacecraft Processing Facility designed to accommodate both 4-meter and 5-meter class satellites with weights in excess of 25,000 pounds and payload fairings up to 75 feet long. Construction begins this month at Astrotech's VAFB facilities to expand to 5-meter fairing accommodations.