Spacehab Subsidiary Wins First Competed Contract Under Recently Awarded VAFB IDIQ

Astrotech to Begin Support on the Ocean Surface Topography Mission (OSTM)

Houston, Texas (August 27, 2007) - SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, today announced that its Astrotech Space Operations subsidiary has won the first fully funded task order under the recently awarded Vandenberg Air Force Base (VAFB) indefinite delivery, indefinite quantity (IDIQ) contract for the Ocean Surface Topography Mission (OSTM)/Jason-2.

On June 25, the SPACEHAB subsidiary announced the award of a $35 million indefinite delivery, indefinite quantity contract for payload processing support on several upcoming NASA spacecraft missions, for which each must be individually competed. OSTM is the first in the series to be awarded. "The OSTM contract award is an important accomplishment for us as it underscores the confidence our valuable customers have in the capabilities, safety, and customer service associated with the Astrotech name," said Don M. White Jr., Astrotech General Manager.

OSTM, scheduled to launch from VAFB in mid 2008, is the next-generation ocean altimetry mission to extend the time series of sea surface topography measurements begun by TOPEX/Poseidon (1992-2005) and continued by Jason-1 launched in 2001. A four-partner mission between NASA/JPL, Centre National d'Etudes Spatiales (CNES), the European Organization for the Exploitation of Meteorological Satellites (Eumetsat), and the National Oceanic and Atmospheric Administration (NOAA) , OSTM will measure sea surface height to an accuracy of less than 4 cm every ten days. These precise measurements will help scientists better understand ocean circulation and its effect on global climate.

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.