Spacehab Subsidiary Vying For New Contract At Vandenberg Location

Houston, Texas (February 2, 2007) - 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.