SPACEHAB ANNOUNCES MANAGEMENT CHANGE

SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, today announced its Chief Financial Officer, Julia A. Pulzone, will resign effective December 31, 2003 due to the Company’s decision to close its Washington, D.C. office.

On October 1, 2003 SPACEHAB announced plans to close its Washington, D.C. office and move those operations to its Houston, Texas headquarters as part of an expense reduction effort. Ms. Pulzone has elected to remain in the Washington, DC area, where she has enjoyed a successful career.

“Julia has been a key contributor to SPACEHAB’s success and a vital member of the management team since she joined the company,” said Michael E. Kearney, SPACEHAB’s President and Chief Executive Officer. “She has played a crucial role in shaping our capital structure, building a solid financial team, and managing through the recent challenges. Her efforts have been a key part of the Company and her presence will be missed. We are pleased she will continue working with us during the transition and we wish her the best of luck.”

Ms. Pulzone will continue as an advisor with the Company through June 30, 2004 and will assist with the transition of the financial operations to its headquarters in Houston. The Company has initiated a search for a new Chief Financial Officer to be based in Houston.

About SPACEHAB, Incorporated
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).

The statements in this document may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the statements. In addition to those risks and uncertainties discussed herein, such risks and uncertainties include, but are not limited to, whether the Company will fully realize the economic benefits under its U.S. National Aeronautics and Space Administration ("NASA") and other customer contracts, whether NASA and other customers will continue to utilize the Company's habitat modules and related commercial space assets, whether plans to complete the International Space Station ("ISS") are fulfilled, continued availability and use of the U.S. Space Shuttle system, technological difficulties, product demand and market acceptance risks, the effect of economic conditions, uncertainty in government funding, the impact of competition, delays and uncertainties in future space shuttle and ISS programs, resolution of the Company's indemnification claim with NASA arising from the loss of the Columbia orbiter and its crew during the STS-107 mission, and other risks described in reports filed by the Company with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements.

For more information, contact:
Darren E. Barker
Vice President
Investor Relations International
Phone 818.382.9706
Fax 818.382.9701
dbarker@irintl.com

Julia A. Pulzone
Chief Financial Officer
SPACEHAB, Inc. -- Washington Office
Phone 202.488.3500
Toll free 888.647.9543
pulzone@hqspacehab.com