Houston, Texas, February 1, 2005 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced that its satellite processing and facility services subsidiary, Astrotech Space Operations, has been awarded new payload processing contracts in both the commercial and government sectors.

In the commercial sector, Astrotech received new contracts from The Boeing Company (NYSE: BA), to provide payload processing support services on two upcoming Delta missions. The total value of the two contracts is approximately $1.75 million.

"These new missions represent a continuation of a longstanding, successful relationship between Boeing and Astrotech," stated John B. Satrom, Senior Vice President and General Manager of Astrotech Space Operations. "We are pleased to be able to provide our proven capabilities in support of these exciting missions."

The Geostationary Operational Environmental Satellite (GOES-N) mission will be processed at the Astrotech facility in Titusville, Florida, in preparation for a May 2005 liftoff onboard a Boeing Delta IV launch vehicle from Cape Canaveral Air Force Station. GOES-N is the first in a series of next generation weather monitoring satellites operated by the National Oceanic and Atmospheric Administration. The system will provide accurate location data of severe storms and other weather phenomena resulting in more precise warnings to the public.

The second purchase order, for the WorldView mission, calls for the provision of processing services at the Company’s Astrotech facility located on Vandenberg Air Force Base, California. Set for a late 2005 launch onboard a Boeing Delta II vehicle, the WorldView satellite imaging system offers a wide range of high-resolution Earth images to customers worldwide.

In the government arena, Astrotech was recently awarded a contract valued at $2.5 million, also supplying payload processing services, in support of U.S. Government missions. Satrom said, “Having been at the forefront of the commercial space industry for over 20 years, we are excited about providing our unique services to a growing government business base.”

In related news, Astrotech recently celebrated the successful launch of NASA’s Deep Impact spacecraft. Processed at Astrotech’s state-of-the-art payload processing facilities in Titusville, Florida, Deep Impact is comprised of two parts, a fly-by spacecraft and a smaller impactor, a copper projectile that is scheduled to collide with the comet Tempel 1 on July 4, 2005 and record photos and data of the event to send back to Earth.

To date, Astrotech has successfully processed more than 220 spacecraft and, with its unique five-meter processing capabilities at its Florida facilities, is positioned to support the next generation of manned and unmanned space vehicles.

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 that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statement. These factors include, but are not limited to, continued government support and funding for key space programs, product performance and market acceptance of products and services, as well as other risk factors and business considerations described in the company's Securities & Exchange Commission filings including the annual report on Form 10-K. Any forward-looking statements in this document should be evaluated in light of these important risk factors. The Company assumes no obligation to update these forward-looking statements.

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