SPACEHAB Accepts $4.8 Million Offer On Florida Processing Facility

FOR IMMEDIATE RELEASE

SPACEHAB ACCEPTS $4.8 MILLION OFFER ON FLORIDA PROCESSING FACILITY

Lease-Back Agreement Ensures Smooth Operations for Space Shuttle Missions

Cape Canaveral, Florida, May 2, 2005 - SPACEHAB, Incorporated (NASDAQ/NMS:
SPAB), a leading provider of commercial space services, today announced that
it has consummated the sale and lease back of its 58,000 square-foot
processing facility in Cape Canaveral, Florida in a transaction with Tamir
Silvers LLC valued at $4.8 million.

The SPACEHAB Payload Processing Facility (SPPF), located at 620 Magellan
Road on a commercial site just south of Cape Canaveral, Florida, hosts all
payload integration activities for the SPACEHAB module and cargo carrier
fleet. The Company decided to enter into the sale-lease back transaction in
order to further improve liquidity and enhance operating efficiencies.

"This strategically-focused transaction provides us with the flexibility to
consolidate or modify our Florida facility operations to reflect support we
provide to NASA and other customers as we evolve from space station assembly
and resupply efforts to initiatives in support of the Nation's Vision for
Space Exploration," said Michael E. Kearney, SPACEHAB President and Chief
Executive Officer. "In the meantime, SPACEHAB will maintain its payload
integration activities at the SPPF and will continue to manage the
property."

"Our Florida team remains focused on supporting NASA with a safe return to
flight as we are providing services on four of the next six space shuttle
missions," stated Martin L. McLellan, Vice President of Business
Development. SPACEHAB expects no interruption in mission preparations and is
actively supporting payload integration and astronaut training activities on
upcoming space shuttle missions.
The contract terms are for SPACEHAB to lease 100% of the facility for an
initial period of five years, with an option period for an additional five
years. Currently SPACEHAB has subleases in place that occupy approximately
20% of the available space with another 20% on hand for prospective tenants.

The SPPF offers Class 100,000 clean room accommodations and all ground
support equipment enabling SPACEHAB's carriers and their payloads to be
tested prior to delivery to the nearby Kennedy Space Center for final
integration into NASA's space shuttles. Since 1991 SPACEHAB and astronaut
crews have conducted testing and training activities at the SPPF to support
18 prior space shuttle and space station missions with preparations
currently underway for missions STS-114 and STS-121.

In the deal negotiated by NAI Realvest Partners, Inc., a fully integrated
commercial real estate operating company, Tamir Silvers LLC took ownership
on April 25, 2005. Tamir Silvers LLC is a privately-owned investment group
located in Southern Florida.


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Jacques :-)

www.spacepatches.info