SPACEHAB NAMES SENIOR AEROSPACE EXECUTIVE TO BOARD OF DIRECTORS

FOR IMMEDIATE RELEASE

SPACEHAB NAMES SENIOR AEROSPACE EXECUTIVE TO BOARD OF DIRECTORS

Houston, Texas, May 29, 2003 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced changes to the Company’s Board of Directors, including the appointment of Dr. Fritz-Stefan Graul.

Dr. Graul is the Director of Orbital Infrastructure & Operations and Reusable Systems for Astrium, Europe’s leading aerospace company. He is responsible for overseeing strategic planning, business development, and operations. Dr. Graul also manages all contractual and business dealings between SPACEHAB and Astrium Space Infrastructure and has been instrumental in forging a strategic alliance that has proven beneficial to both organizations and the aerospace industry as a whole.

Dr. Graul replaces former Board member, Josef Kind, who held a seat on the SPACEHAB Board of Directors since October 1999. Due to time constraints associated with his role as President of the Space Transportation Division of the European Aeronautics Defense and Space Company (EADS), Astrium’s parent company, Mr. Kind has decided to relinquish his Board position. As a holder of SPACEHAB Series B Senior Convertible Preferred Stock, Astrium may elect one member to the Company’s Board of Directors.

“We welcome the opportunity to benefit from Dr. Graul’s diverse talent and experience,” said SPACEHAB Chairman of the Board, Dr. Shelley A. Harrison. “We appreciate Mr. Kind’s numerous years of dedicated service, helping SPACEHAB in its space access and commercialization initiatives,” concluded Dr. Harrison.

In addition, Mr. Hironori Aihara, Senior Executive Vice President and Chief Executive Officer of Mitsubishi International Corporation, has resigned from SPACEHAB’s Board of Directors after 11 years of devoted service. He announced his retirement from Mitsubishi earlier this month and plans to return to Japan. The Board position previously held by Mr. Aihara will remain vacant until the next annual shareholders meeting.

About SPACEHAB
With more than $100 million in annual revenue, SPACEHAB, Incorporated (www.spacehab.com) 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 for space station resupply and research purposes. Its Government Services business unit provides Space Station and Space Shuttle support services including orbiter crew compartment integration, stowage, and configuration management to NASA's Johnson Space Center in Houston. SPACEHAB’s Astrotech subsidiary provides commercial satellite processing services at facilities in California and Florida. Additionally, through The Space Store, Space Media 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 impact of the recent Columbia tragedy on the Company's existing and future business operations, the amount of any indemnification payments the Company may receive for its RDM, which was lost as part of the Columbia tragedy, 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, the impact of war, uncertainty in government funding, the impact of competition, and other risks detailed in the Company's Securities and Exchange Commission filings. The Company assumes no obligation to update these forward-looking statements.

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