SPACEHAB Joins Forces with Academia; Company Provides Real-World Experience to Students While Advancing Space Concepts.

HOUSTON -- "Space Exploration." Definitely not a new term; but the rejuvenated enthusiasm for the expression most certainly is. We've all been hearing about the newest frontier - the commercialization and privatization of space. Gone are the days that our celestial borders can only be explored by the elite few. Now, ordinary people with a vision can pursue either working in or for someone in space.

SPACEHAB, Inc. (Nasdaq/NMS:SPAB), a Houston-based commercial space company, has recently joined forces with the University of Houston's Sasakawa International Center for Space Architecture (SICSA), to develop concepts for space exploration. Spawned by SPACEHAB's recent award of a NASA contract supporting the evaluation and refinement of a Lunar Exploration System concept, SPACEHAB engineers along with SICSA staff and graduate students will be working in tandem to develop architecture for lunar outposts to be used as a proving ground for the systems required to explore our solar system, beginning with Mars. This contract is one of many initiatives NASA is pursuing in response to the National Space Vision outlined by President Bush earlier this year.

SICSA's director, Professor Larry Bell, believes this opportunity to parent a project with private industry has limitless benefits for both the university and private enterprise. "Bringing together the corporate world and academic world to jointly embark in this new era is very exciting. Our young scientists and architects will gain real-life, hands-on experience, while our private-sector partners gain a competitive edge and unique analytical expertise. The fact that these students are directly involved with a project mandated by the President is invaluable."

For SPACEHAB, this relationship is also a win-win situation. Mike Bain, SPACEHAB's Vice President of Space Commerce Development, feels that the SICSA/SPACEHAB arrangement will continue to develop and grow over time. "It's a strategic partnership where both parties benefit. University students and staff get the opportunity to participate in real-world development projects, while we gain fresh perspective and unconventional design concepts that our NASA customer is seeking."

For more than 20 years, SPACEHAB's expertise and engineering ingenuity has been providing NASA with innovative commercial space services, assisting our world's pioneers in spaced-based research, telecommunications, and the development of human space-flight hardware. This groundbreaking spirit is the ideal compliment to SICSA's mantra of looking at the total mission-planning picture.

The SICSA program was developed in 1987 and is the first of its kind in the world, as well as the only Space Architect degreed program of its kind. Its students are comprised of architect and non-architect fifth-year and graduate students, as well as individuals who are currently in the workforce. Upon completion of the program students will gain a Masters of Science degree in Space Architecture. SPACEHAB's relationship with SICSA plans to foster the next generation of space designers and architects, while simultaneously developing the foundation for the new era of commercial space exploration.

To learn more about the various space architecture designs being considered, please contact Mike Bain at SPACEHAB, 713-558-5012 or Professor Larry Bell at the University of Houston, 713-743-2351.

About SPACEHAB

SPACEHAB, Incorporated (www.spacehab.com) is a leading provider of commercial and government space services with three primary business units. The Flight Services business unit develops, owns, and operates habitat and laboratory modules and cargo carriers aboard NASA's Space Shuttles for Space Station resupply and research purposes. SPACEHAB's Astrotech subsidiary provides payload processing support services for both commercial and government customers at company-owned facilities in Florida and California. The Company's Government Services business unit supports NASA's Johnson Space Center providing configuration management, product engineering, and support services for both the Space Station and Space Shuttle programs.

The statements in this document may contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statement. These factors include, but are not limited to, continued government support and funding for key space programs, product performance and market acceptance of products and services, as well as other risk factors and business considerations described in the company's Securities & Exchange Commission filings including the annual report on Form 10-K. Any forward-looking statements in this document should be evaluated in light of these important risk factors. The Company assumes no obligation to update these forward-looking statements.