Spacehab Subsidiary Wins New $35 Million NASA Contract Mission At Vandenberg

Astrotech to Begin Support on Multiple Spacecraft Missions at the Western Range

Houston, Texas (June 25, 2007) - SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, today announced that its Astrotech Space Operations subsidiary has been awarded a new contract by NASA for payload processing services for expendable launch vehicles (ELVs) from Vandenberg Air Force Base (VAFB) at the Western Range in California.

With a value not to exceed $35 million, this indefinite-delivery, indefinite-quantity (IDIQ) contract is for payload processing support on several upcoming NASA spacecraft missions. The contract stipulates that the multi-mission contract services are targeted to begin in calendar year 2007 running through 2009 with additional options through 2011. Astrotech responded to the NASA Request for Proposal (RFP) in March of this year.

"NASA is an extremely valuable customer to Astrotech and we are proud to play an important role in support of NASA ELV missions at Vandenberg," said Astrotech Space Operations General Manager, Don M. White, Jr. "We pledge to our NASA customer that the Astrotech team will continue to provide the skilled and safe processing support services our customers have come to expect over the past 23 years."

Astrotech was awarded a similar NASA IDIQ contract in 2005 for Payload Processing Services at its Titusville, Florida location in support of East coast ELV launches. Additionally, Astrotech is nearing the construction phase on the previously announced $20 million facility upgrade contract at VAFB, expanding the Company's accommodations at that location for five-meter fairing spacecraft.

From three locations nationwide, Astrotech provides all support necessary for government and commercial customers to successfully process their satellite hardware for launch, including advance planning; use of unique facilities; and spacecraft checkout, encapsulation, fueling, transport, and remote control through launch. In its 23-year history, Astrotech has supported the processing of nearly 250 spacecraft without a single impact to a customer's mission launch schedule.