SPACEHAB AWARDED TWO NEW SPACE STATION MISSIONS
Contract Modification Signed for $42.4 Million

March 6, 2002, Houston, Texas - SPACEHAB, Inc. (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that it has signed a contract modification with NASA worth $42.4 million to provide its pressurized Logistics Single Module (LSM) and unpressurized Integrated Cargo Carrier (ICC) for two new International Space Station (ISS) assembly and cargo resupply missions.

These two new missions, STS-116 (12A.1) and STS-118 (13A.1), were added to SPACEHAB's Research and Logistics Mission Support contract with NASA and are currently on NASA's Space Shuttle manifest to launch in calendar year 2003. SPACEHAB will commence work on the missions immediately. These LSM/ICC flights will be SPACEHAB's sixth and seventh resupply missions to the ISS.

The dual assembly and resupply objectives of each of these two missions are ideally suited for SPACEHAB's versatile inventory of modules (single and double) and pallet carriers (horizontal and vertical). NASA's selection of the LSM and horizontal ICC configuration for each of these new missions allows for co-manifesting of critical ISS structural elements and Orbital Replacement Unit (ORU) subsystem components. Along with modifications made to the Space Shuttle Columbia, SPACEHAB's flexibility in locating its carriers within the shuttle cargo bay is enabling NASA to use this orbiter for missions to the ISS, marking STS-118 as Columbia's first visit to the orbiting space station.

SPACEHAB President and Chief Operating Officer Michael E. Kearney stated, "The addition of these two missions reflects how SPACEHAB can help NASA with the challenges faced when managing the resources of the nation's space program. Our ability to offer a combination of valuable services in a single mission, such as crew exchange, external hardware, and logistics support, is an important contribution to ISS assembly and operations."

SPACEHAB's next shuttle flight, STS-107, is a dedicated research mission currently scheduled to launch in July 2002. This mission will debut the flight of SPACEHAB's Research Double Module, a $100 million asset. This flight also marks the 18th mission for SPACEHAB, which has achieved nearly $500 million in revenue for supporting NASA research and logistics missions.

With more than $100 million in annual revenue, SPACEHAB, Inc. is a leading provider of commercial space services. The company develops, owns, and operates habitat and laboratory modules and cargo carriers aboard NASA's Space Shuttles. Its Johnson Engineering subsidiary supports astronaut training and space station configuration management at NASA's Johnson Space Center in Houston and builds space-flight trainers and mockups. SPACEHAB's Astrotech subsidiary provides commercial satellite processing services at facilities in Florida and California. SPACEHAB's newest strategic growth initiative, SPACEHAB Huntsville, will provide customer-focused end-to-end services to the space research community at NASA's Marshall Space Flight Center in Huntsville, Alabama. Additionally, through The Space Store, SPACEHAB provides space merchandise to the public and space enthusiasts worldwide (www.thespacestore.com).

This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Such risks and uncertainties include, but are not limited to, whether the company will fully realize the economic benefits under its NASA and other customer contracts, the timing and mix of Space Shuttle missions, the successful development and commercialization of new space assets, technological difficulties, product demand, timing of new contracts, launches and business, market acceptance risks, the effect of economic conditions, uncertainty in government funding, the impact of competition, and other risks detailed in the Company's Securities and Exchange Commission filings.

For more information, contact:
Kimberly Campbell
Director of Marketing
SPACEHAB, Inc.
Phone: 713.558.5049
Fax: 713.558.5960
campbell@spacehab.com