Houston, Texas, November 17, 2005 – SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, announced today the completion of its offer to exchange up to $63,250,000 in aggregate principal amount of its 5.5% Senior Convertible Notes due 2010 (“New Notes”) for all of its outstanding 8.0% Convertible Subordinated Notes due 2007 (“Old Notes”). The exchange offer expired at 5:00 p.m. New York City time on November 16, 2005.

As of the expiration of the exchange offer, approximately $52,944,000 of Old Notes, representing approximately 83.7% of Old Notes, had been tendered in exchange for an equal principal amount of New Notes. The exchange is expected to take place on November 22, 2005. Following the consummation of the exchange offer, approximately $10,306,000 of Old Notes will remain outstanding.

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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