Spacehab Responds to NASA RFP Seeking Commercial ISS Resupply Means


Company and Renowned Affiliate Team Propose ARCTUS as Most Viable Transport Solution

SPACEHAB, Incorporated (NASDAQ:SPAB), a leading provider of commercial space services, today announced that the Company has submitted a formal proposal response to NASA's Commercial Orbital Transportation Services (COTS) Phase 1 Demonstrations Request for Proposal (RFP) based on the Advanced Research and Conventional Technology Utilization Spacecraft (ARCTUS) design. SPACEHAB, together with its aerospace affiliates Lockheed Martin, United Launch Alliance, Cimarron and Odyssey Space Research, is developing a commercial cargo transportation capability to serve both NASA's needs for cargo services to the International Space Station (ISS) as well as other commercial needs, including SPACEHAB's recently announced Microgravity Processing activities.

NASA released the COTS Phase 1 RFP in October 2007 seeking one or more funded Space Act Agreements (SAAs) with private industry. The effort calls for the development and demonstration of the vehicles, systems, and operations needed to resupply, return cargo from, and transport crew to and from low Earth orbit after 2010, helping fill the gap between the space shuttle's scheduled retirement and 2015 when the planned replacement Constellation Program becomes operational.

SPACEHAB's COTS solution draws heavily from existing components and infrastructure providing a reliable, low-cost, and low-risk solution. The ARCTUS design philosophy has been to utilize flight proven systems, hardware and assets to the greatest extent possible. This approach ensures availability, reduces flight risks, and minimizes cost while meeting all NASA requirements for this much needed service. Spacecraft structural and avionics components will be obtained from Lockheed Martin and are derived from the Centaur and XSS-11 programs. Launch services will be procured through United Launch Alliance utilizing the successful Evolved Expendable Launch Vehicles (EELV) Atlas V or Delta IV. Cimarron will provide mission control center development and integration while Odyssey Space Research will perform trajectory analysis and provide associated integration services.

SPACEHAB is currently working to develop ARCTUS under an unfunded SAA with NASA. The COTS I award, expected in early 2008, will provide NASA investment to the winning solution(s) through a funded SAA. NASA has announced that up to $174 million is available under this pending COTS I award.

"The tremendous flexibility afforded by the ARCTUS design translates to the most cost effective cargo service for our NASA customer," said Rick Fitts, SPACEHAB Vice President and ARCTUS Program Manager. "We are confident that our approach will allow us to meet NASA's projected need for reliable, affordable cargo services to the ISS, thereby ensuring continued domestic access to the station after the planned shuttle retirement. This capability is not only important to NASA, but will also provide us with assured access to the station to support our planned commercial utilization of the ISS National Laboratory," he said.

About SPACEHAB, Incorporated

SPACEHAB is a commercial leader and entrepreneurial force in the space industry providing a full spectrum of products and services to both the government and private sectors. The Company offers space access and payload integration services, production of valuable commercial products in space, spacecraft pre-launch processing facilities and services, development and extension of space-based products to the consumer market, and program and engineering support ranging from development and manufacturing of flight hardware to large scale government project management.

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.


SPACEHAB, Inc., Houston
Corporate Marketing and Communications
Eva-Marie deCardenas, 713-558-5071

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