SPACEHAB Subsidiary Announces Management Changes

Houston, Texas (August 11, 2005) -

SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, announced today that John B. Satrom, Senior Vice President and General Manager of Astrotech Space Operations, a SPACEHAB subsidiary, has decided to leave the Company to pursue other interests.

“I have thoroughly enjoyed my position with SPACEHAB and Astrotech, and I consider it my privilege having had the opportunity to work with such a talented group of professionals,” said Satrom. “This was a difficult decision.” Satrom and his family will be leaving Titusville, Florida to return to Washington, D.C., where he started his career with Astrotech in 1998, just shortly after SPACEHAB acquired the payload processing company.

“John has consistently been the force behind Astrotech’s accomplishments. From expanding our Florida facility to managing the processing support of more than 125 of the 230-plus spacecraft processed since the Company began, Astrotech, through John’s leadership, has clearly continued to be the industry leader when it comes to spacecraft processing services,” said Michael E. Kearney, SPACEHAB President and Chief Executive Officer.

To keep the momentum strong, Jim Royston will take on a broader role as Deputy General Manager of Astrotech Space Operations reporting directly to Kearney. Until a new General Manager is selected, Jim will be responsible for all strategic and tactical operations for SPACEHAB’s spacecraft processing business unit. Since 2002, Royston has led the Company’s Florida ground operations and brings over 15 years of industry experience to the table.

In addition, SPACEHAB announces that Don M. White, Jr. will be joining the Astrotech team as Vice President of Florida Operations. White, who has more than 20 years of payload processing and project management experience, will oversee spacecraft processing for civil, military, and commercial customers out of Astrotech’s main base in Titusville, Florida.

“Astrotech and our team of professionals have continuously provided exceptional client-driven service and expert payload processing support to our valued customers. I have no doubt the next chapter of this business success story will be just as exciting and filled with more achievements,” said Kearney.