Houston, Texas, February 14, 2005 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, announced today that the Company has established a new $5.0 million revolving line of credit with First American Bank, SSB. The revolving credit facility substantially enhances SPACEHAB’s liquidity and the new banking relationship marks the transition of the Company's financial center from Washington, D.C. to its headquarters in Houston, Texas.

The new facility, to be used for general working capital purposes, will be secured by SPACEHAB’s accounts receivable and subject to normal covenants. In conjunction with this new facility, SPACEHAB intends to move its primary investment, lock box, and disbursements accounts to First American Bank.

First American Bank, one of the largest independent financial institutions in Texas, is being acquired by Citigroup in a transaction that is expected to close in the first quarter of 2005. The Citigroup acquisition of First American will be the vehicle for entry into the Texas retail banking market. SPACEHAB’s new banking relationship therefore aligns the Company with one of the largest and most respected financial institutions in the world.

The new credit facility will replace SPACEHAB’s revolving line of credit with Riggs Bank of Washington, D.C. SPACEHAB has appreciated its positive relationship with Riggs Bank over the past several years as the Company dealt with the loss of its Research Double Module on the Space Shuttle Columbia accident and completed several significant service contracts with NASA.

In January 2004 the Company moved its corporate offices from Washington, D.C. to Houston, Texas to be closer to NASA’s Johnson Space Center and the center of operations of the International Space Station. Establishing a Texas-based banking affiliation is a natural progression to meet evolving financial and operational objectives.

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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