SPACEHAB FIRST QUARTER RESULTS IN LINE WITH SIGNIFICANT GROWTH INVESTMENTS

Washington, D.C., November 8, 2000 - SPACEHAB, Inc. (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced financial results for the first quarter of fiscal 2001, ended September 30, 2000. SPACEHAB reported a reduced loss of $1.5 million ($0.13 per basic and diluted share) for the quarter, as compared with a loss of $2.0 million ($0.17 per diluted share) for the same period a year ago.

SPACEHAB recorded revenues of $27.0 million for first quarter 2001 versus $26.0 million for the same period last year. Revenues by business segment for the quarter were $11.2 million for SPACEHAB Flight Services, $14.6 million for Engineering Services (formerly Johnson Engineering), and $1.1 million for Astrotech Space Operations. These revenues compare to $5.6 million, $17.6 million, and $2.8 million, respectively, for the same period a year ago.

Earnings or loss before tax for first quarter 2001 for these same segments were $0.1 million income for SPACEHAB Flight Services, a $27,000 loss for Engineering Services, and $1.0 million loss for Astrotech versus $3.6 million loss, $0.5 million income, and $0.1 million income, respectively, for the first quarter of fiscal 2000.

SPACEHAB's start-up subsidiary Space Media, Inc.™, which began operations in January 2000, recorded revenue of $45,000 and a loss before tax of $1.3 million for the first quarter of fiscal 2001. Revenue came primarily from sales made by The Space Store, an online retail business acquired in June 2000.

"A stretched-out development schedule for the International Space Station [ISS] and customer delays on Astrotech satellite processing jobs affected our revenues for the quarter, while continued investments in Space Media and Enterprise increased operating costs," said SPACEHAB Chairman and Chief Executive Officer Dr. Shelley A. Harrison. "Permanent habitation of the space station should now begin to stabilize the Shuttle launch schedule, attract commercial users, and help to develop markets for our existing and planned products and services."

SPACEHAB's Flight Services unit continued preparations in the first quarter to support its next Space Shuttle research mission, STS-107, scheduled to launch in the summer of calendar year 2001. SPACEHAB's newest flight asset, the Research Double Module -- a habitat equipped to function as a laboratory in space -- will make its first flight on this mission, carrying numerous science experiments from a variety of nations. Experiments aboard this mission will include a full locker of experiments designed by students under the S*T*A*R*S® (Space Technology And Research Students) global education program, managed by Space Media. (See www.starsprogram.com for more information about S*T*A*R*S.) The value of SPACEHAB's flight contracts for STS-107 now totals $36.9 million.

SPACEHAB's Engineering Services unit has been working multiple shifts on astronaut training operations at NASA's Neutral Buoyancy Laboratory in the first quarter of 2001, to meet training demands for space station assembly missions and other Shuttle flights. Engineering Services operates this training facility for the space agency; it also operates NASA's Space Vehicle Mockup Facility and builds full-scale trainers and mockups. In addition, work is under way on a multimillion-dollar museum exhibit being built by Engineering Services for Shanghai ScienceLand in China.

Astrotech prepared only two satellites for launch during the quarter. Two other satellites originally scheduled to be processed in first quarter 2001 were postponed, one to the second quarter of fiscal 2001 and another to calendar year 2002. Launch vehicle failures over the past year have temporarily slowed down rocket launch rates and affected Astrotech's satellite processing business. However, the causes of those rocket failures have been identified, and the launch vehicle systems are back in operation. In addition, communication satellite sales have been rising in calendar year 2000. Astrotech thus anticipates that the pace of its satellite processing business will increase by fiscal 2002.

SPACEHAB is proceeding with the development of its commercial space station habitat project, Enterprise™, in partnership with RSC-Energia, Russia's largest aerospace company. Enterprise is planned to be attached to the ISS in 2003. In the interim, SPACEHAB's Space Media plans to begin multimedia operations later in fiscal 2001 on the Zvezda service module, now attached and manned on the Russian side of the ISS.

Founded in 1984, with more than $100 million in annual revenue, SPACEHAB, Inc., is a leading provider of commercial space services. The company is the first to develop, own, and operate habitat modules and cargo carriers providing laboratory facilities and resupply capabilities aboard NASA's Space Shuttles. It also supports astronaut training at NASA's Johnson Space Center in Houston and builds full-scale space-flight trainers and mockups. SPACEHAB's Astrotech subsidiary provides commercial satellite processing services at facilities in Florida and California in support of a range of expendable launch vehicles, including Lockheed Martin's Atlas and Boeing's Delta and Sea Launch rockets. SPACEHAB's newest strategic growth initiative, Space Media, Inc. (SMI™, a subsidiary), will bring space into homes and classrooms worldwide with television and Internet broadcasting from the International Space Station.

SPACEHAB, INCORPORATED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations

Three Months Ended September 30,
(In thousands, except share data)

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