SPACEHAB AND NASA EXTEND DATE FOR CONTRACT CLAIM RESOLUTION

FOR IMMEDIATE RELEASE

SPACEHAB AND NASA EXTEND DATE FOR CONTRACT CLAIM RESOLUTION

Houston, Texas, June 24, 2004 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that it has mutually agreed with NASA to waive the Agency's response date of June 24, 2004 on SPACEHAB's contract claim for indemnification. As reported January 20, 2004, SPACEHAB submitted a detailed claim to NASA for recovery of its Research Double Module investment. The module and related equipment were destroyed during the STS-107 Space Shuttle Columbia accident.

Michael E. Kearney, SPACEHAB President and Chief Executive Officer, stated, “Negotiations between NASA and the Company are progressing at an accelerated rate, with the objective of reaching a mutually satisfactory resolution of SPACEHAB's claim for losses as expediently as possible.”

The Company had been previously notified by NASA that it intended to advise SPACEHAB of its findings on June 24, 2004. Although SPACEHAB has agreed to waive the response date, the Company reserves its rights to administrative review and other legal recourse under the claim, in the event that a mutually acceptable resolution cannot be achieved.

About SPACEHAB, Incorporated
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. Additionally, through The Space Store, Space Media provides space merchandise to the public and space enthusiasts worldwide (www.thespacestore.com).

The statements in this document may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the statements. In addition to those risks and uncertainties discussed herein, such risks and uncertainties include, but are not limited to, whether the Company will fully realize the economic benefits under its U.S. National Aeronautics and Space Administration ("NASA") and other customer contracts, whether NASA and other customers will continue to utilize the Company's habitat modules and related commercial space assets, whether plans to complete the International Space Station ("ISS") are fulfilled, continued availability and use of the U.S. Space Shuttle system, technological difficulties, product demand and market acceptance risks, the effect of economic conditions, uncertainty in government funding, the impact of competition, delays and uncertainties in future space shuttle and ISS programs, resolution of the Company's indemnification claim with NASA arising from the loss of the Columbia orbiter and its crew during the STS-107 mission, and other risks described in reports filed by the Company with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements

For more information, contact:

Kimberly Campbell
Director of Marketing and Communications
SPACEHAB, Inc.
Phone 713.558.5049
campbell@spacehab.com