Royston Named Senior Vice President Of SPACEHAB Subsidiary

Titusville, Florida (May 16, 2006) - SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, announced today the appointment of James D. Royston to Senior Vice President and General Manager of the Company’s Astrotech Space Operations subsidiary.

“Under Jim’s keen leadership as Vice President over the last several years, we have seen Astrotech expand its service offerings, enhance its facility capabilities, and enlarge its business base,” said Michael E. Kearney, SPACEHAB President and Chief Executive Officer, in announcing the promotion. “His experience in civil, military, and commercial space initiatives as well as his business acumen have been, and will continue to be, valuable to our organization.”

In this expanded role Royston will coordinate and oversee planning, operation, and growth of the Company’s spacecraft processing and facility services activities. Starting at the beginning of the fiscal year, he began implementation of a new growth strategy to increase overall satellite services capabilities to both commercial and government customers. Royston, 42, joined SPACEHAB in 2002 and has led ground operations at Astrotech’s Florida and California locations.

Astrotech is the leading commercial provider of satellite launch processing services in the United States. With operating locations at all major U.S. launch locations, Astrotech accommodates a wide range of customer payloads as well as the payload fairings and payload adapter assemblies of the launch service providers. This approach allows for maximum flexibility in the processing of parallel missions and accommodating schedule changes. This SPACEHAB business unit’s goal is to make its facilities a seamless extension of the customer’s factory environment. In its twenty two-year history, Astrotech has supported the processing of more than 230 spacecraft without a single impact to a customer’s mission launch schedule.