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SPACEHAB, INC. AWARDED A TEN-YEAR CONTRACT TO SUPPORT BOEING LAUNCH PROGRAM

Washington, DC, November 2, 1999 — SPACEHAB, Inc.'s (Nasdaq: SPAB) announced today that its wholly-owned subsidiary, Astrotech Space Operations, Inc., has been awarded a 10-year contract to provide payload processing services for The Boeing Company. This contract defines support of satellite launches aboard the Boeing Delta family of launch vehicles from Cape Canaveral Air Station, Florida. Astrotech has supported the Delta Program since 1984 and this award broadens and extends Astrotech's support to Boeing through 2010.

This award compliments the existing 14-year contract for Astrotech support of the Sea Launch program, in which Boeing is a major partner. Sea Launch successfully completed its first commercial launch, carrying the DirecTV-1R satellite, earlier this month. This was the first of 18 commercial launch commitments under contract to Sea Launch. Under the terms of the new contract, SPACEHAB will enlarge the existing Astrotech facilities located in Titusville, Florida, with the addition of a new satellite preparation facility sized to support the Delta IV, Boeing's winning entrant in the Air Force Evolved Expendable Launch Vehicle (EELV) Program. The Delta IV will be used to launch satellites for government and commercial customers.

In developing the new facility, Astrotech has worked closely with Boeing engineers to design structures that will augment the streamlined and efficient launch process envisioned for the Boeing Delta IV Program. This will enable a significant increase in the number of Delta launches conducted annually from Cape Canaveral.

David A. Rossi, President of SPACEHAB, Inc., hailed the agreement: "The Boeing Delta Program has been a major domestic provider of satellite launches for several decades and a substantial customer of Astrotech for many years. We are pleased to have this opportunity to continue our rewarding and successful relationship with Boeing, and to usher in the new millennium as part of the Delta IV team."

Satellite manufacturers use the Astrotech facility to conduct the final assembly and testing of a satellite, accomplishing those activities that cannot be completed at the factory prior to shipment to the launch site. The combination of the existing Astrotech facilities and the new facility will enable Astrotech to support the full range of satellite sizes planned for launch aboard Delta II, Delta III and Delta IV launch vehicles.

SPACEHAB, with its Johnson Engineering and Astrotech subsidiaries, is the world's leading provider of commercial payload processing services for manned and unmanned payloads. SPACEHAB is the first company to commercially develop, own and operate habitable modules that provide laboratory facilities and logistics re-supply aboard NASA's Space Shuttles. The Company also supports NASA astronaut training at the Johnson Space Center.