SPACEHAB Declared Finalist On $100 Million Space Station Contract

FOR IMMEDIATE RELEASE

SPACEHAB DECLARED FINALIST ON $100 MILLION SPACE STATION CONTRACT
Two Additional Contract Proposals Currently Under Review by NASA


Houston, Texas, August 12, 2003 - SPACEHAB, Incorporated (NASDAQ/NMS: SPAB),
a leading provider of commercial space services, today announced that the
Company made the competitive range as a finalist on NASA's International
Space Station (ISS) Mission Integration Contract (MIC).

Based on the Company's combined expertise in ISS Program support, as well as
its space research and logistics services, SPACEHAB believes it is
positioned to continue, and expand, support to the ISS Program as it
transitions from its current assembly phase to operations and space
utilization. The MIC, estimated by NASA at more than $100 million over five
years with two additional one-year options, further leverages this
capability, utilizing critical skills that include mission integration, ISS
stowage integration, and Russian language and logistics services.

SPACEHAB has aggressively pursued this opportunity, establishing a highly
credible team, comprised of United Space Alliance, MRE Consulting, and ARES
Corporation. In preparation for a potential contract award, this experienced
team has begun development of detailed work processes, initiated a hiring
program, and implemented key steps that support an effective transition
process for contract start.

NASA is consolidating 26 current contracts into seven in an effort to
optimize synergies within the ISS Program, encourage competitive sourcing,
and improve program accountability. Of the seven procurement opportunities
outlined by NASA, SPACEHAB is competing on three of these initiatives
including the MIC effort.

NASA is currently reviewing proposals previously submitted for the two other
procurements, both of which SPACEHAB is bidding on as a subcontractor. The
ISS Program Integration and Control contract, a five-year initiative valued
at approximately $18 million for the Company, utilizes SPACEHAB's core
competency in configuration management. The Cargo Mission contract, also a
five-year effort, employs the Company's unique stowage integration,
International Partner integration, sustaining engineering of stowage
hardware, and program integration capabilities.

"We are optimistic about these contract opportunities and look forward to
continuing our support to NASA and the International Space Station Program,"
said SPACEHAB President and Chief Executive Officer, Michael E. Kearney. "In
the meantime, we are focused on supporting NASA's return-to-flight
activities, providing the Agency with high-value flight hardware and payload
integration expertise on three upcoming ISS missions."

Although there is no assurance that SPACEHAB will be awarded these
contracts, NASA tentatively expects to announce awards in October 2003 with
contract transition beginning as early as November 2003.

About SPACEHAB
With approximately $100 million in annual revenue, SPACEHAB, Incorporated
(www.spacehab.com) is a leading provider of commercial space services. The
Company develops, owns, and operates habitat and laboratory modules and
cargo carriers aboard NASA's Space Shuttles for space station resupply and
research purposes. Its Government Services business unit provides Space
Station and Space Shuttle support services including orbiter crew
compartment integration, stowage, and configuration management to NASA's
Johnson Space Center in Houston. SPACEHAB's Astrotech subsidiary provides
commercial satellite processing services at facilities in California and
Florida. Additionally, through The Space Store, Space Media provides space
merchandise to the public and space enthusiasts worldwide
(www.thespacestore.com).

This release contains forward-looking statements that are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected in such statements. Such risks and uncertainties
include, but are not limited to, whether the Company will fully realize the
economic benefits under its NASA and other customer contracts, the timing
and mix of Space Shuttle missions, the impact of the recent Columbia tragedy
on the Company's existing and future business operations, the amount of any
indemnification payments the Company may receive for its RDM, which was lost
as part of the Columbia tragedy, the successful development and
commercialization of new space assets, technological difficulties, product
demand, timing of new contracts, launches and business, market acceptance
risks, the effect of economic conditions, the impact of war, uncertainty in
government funding, the impact of competition, and other risks detailed in
the Company's Securities and Exchange Commission filings. The Company
assumes no obligation to update these forward-looking statements.

For more information, contact:

Haris Tajyar
Managing Partner
Investor Relations International
Phone 818.981.5300
Fax 818.981.5303
Kimberly Campbell
Director of Marketing
SPACEHAB, Inc.
Phone 713.558.5049
Fax 713.558.5957




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Jacques :-)

Editor: www.spacepatches.info

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