Houston, Texas, November 4, 2004 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that its Astrotech Space Operations subsidiary was presented with the distinguished title of NASA/Kennedy Space Center (KSC) Small Business Contractor of the Year by officials from the Center. Astrotech has been providing payload processing services at their company-owned facilities in Titusville, Florida and at Vandenberg Air Force Base (VAFB), California in support of multiple NASA missions over the past six years.

Photo Caption: Personnel from the Astrophysics Laboratory (APL) at Johns Hopkins University prepare to mate the NASA MESSENGER spacecraft to the dynamic spin balance machine at the Astrotech Space Operations, Inc. facilities in Titusville, Florida.

"We at SPACEHAB are absolutely delighted to receive an award like this, considering the large number of small businesses that support NASA at Kennedy Space Center," said John B. Satrom, Senior Vice President and General Manager of Astrotech. "This is a very exciting time for us as we continue to grow the business in our government sector and expand our growing list of turnkey space services."

As the leader in payload processing support to commercial satellite launchers, Astrotech provides all support necessary for the customer to successfully process their spaceflight hardware for launch, including advance planning; use of unique facilities; and spacecraft checkout, encapsulation, fueling, transport, and remote control through launch.

Astrotech's Florida operations recently supported the successful processing and launch of NASA's MESSENGER, the first spacecraft sent to orbit the planet Mercury. This same team is currently supporting NASA's Deep Impact program, the first space mission intended to probe beneath the surface of a comet and reveal the secrets of its interior.

At Astrotech's VAFB location, the Company recently assisted in the preparation and launch of NASA's Aura spacecraft, designed to study the Earth's ozone, air quality, and climate. Next in line for processing are the Agency's CloudSat and CALIPSO satellites in 2005, which will assess the role of clouds in both weather and climate.

NASA recently announced it would be negotiating an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with Astrotech for payload processing services utilizing the Titusville, Florida facilities for missions in 2006 through 2010. The Company anticipates that NASA will require Astrotech facilities and services approximately twice per year under this sole source justification contract.

Over the last two decades, Astrotech has supported the processing of over 220 spacecraft without a single impact to a customer's mission launch schedule. As stated in NASA's award package, "Astrotech has repeatedly demonstrated its flexibility and responsiveness to late changing customer schedules and processing requirements, common occurrences on most satellite programs today. This success record is due to Astrotech's commercial business approach, the dedicated Astrotech staff, and its commitment to customer service."

In Florida, Astrotech owns and operates a 62-acre complex dedicated to spacecraft processing and payload storage. The centerpiece of the Florida campus is the Satellite Processing Facility (SPF), which was designed and built specifically to accommodate Evolved Expendable Launch Vehicle (EELV) payloads, both 4-meter- and 5-meter-class satellites, with weights in excess of 25,000 pounds and payload fairings up to 75 feet long. The SPF is the only satellite processing facility at Florida's Kennedy Space Center/Cape Canaveral Air Force Station launch complex specifically designed to accommodate satellites and payload fairings for Lockheed Martin Atlas V and Boeing Delta IV EELV missions .

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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