Houston, Texas, October 28, 2004 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that its 2004 Annual Meeting of Shareholders will be held on December 1, 2004 at 10:00 a.m. Central time at the Hilton Houston NASA Clear Lake located at 3000 NASA Parkway, Houston, Texas 77058.

At the Annual Meeting, shareholders of record will be asked to elect ten Directors to SPACEHAB's Board of Directors and to ratify the appointment of Grant Thornton LLP as independent auditors for the Company. Earlier this month, the Board of Directors increased the size of SPACEHAB's Board to ten positions by adding three new positions. The Board was expanded in response to a request submitted by a group of shareholders. As a result, the Board has nominated a slate of Directors that includes Richard S. Bodman, Dr. Edward E. David, Richard Fairbanks, Dr. Shelley A. Harrison, Michael E. Kearney, James R. Thompson, and Dr. Stefan-Fritz Graul , as well as the additions of Roscoe M. Moore, III, Thomas Boone Pickens, III, and Barry A. Williamson.

"Our Board of Directors held discussions with these three individuals and evaluated their capabilities in accordance with SPACEHAB's Director selection criteria. We determined that these individuals possess the background and vision needed to be positive additions to the Company's Board; a decision that we anticipate will benefit both SPACEHAB and our valued shareholders," stated Michael E. Kearney, SPACEHAB President and Chief Executive Officer. "We look forward to having these highly respected individuals join our team and will look to them for new ideas, contributing to the strength of our Board."

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).

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