SPACEHAB ANNOUNCES STOCK REPURCHASE PROGRAM

SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services with over $100 million in sales, today announced that its Board of Directors has authorized a common stock repurchase program of up to $1.0 million. The program is effective immediately.

Any purchases under SPACEHAB’s stock repurchase program may be made from time-to-time, in the open market, through block trades or otherwise in accordance with applicable regulations of the Securities and Exchange Commission. Depending on market conditions and other factors, these purchases may be commenced or suspended at any time or from time-to-time without prior notice. Additionally, the timing of such transactions will depend on other corporate strategies and will be at the discretion of the management of the Company.

SPACEHAB currently has approximately 13.6 million shares of common stock outstanding, with cash and cash equivalents of approximately $19.3 million, or $1.42 per diluted share, as of the end of February 2003. The repurchased shares will become treasury shares and may be used for general corporate purposes.

“The Board of Directors decided to pursue this course of action after a review of the Company's financial condition, outlook, and other investment alternatives,” said Michael E. Kearney, President and Chief Operating Officer of SPACEHAB. “Under current market conditions, we have an opportunity to buy back shares of SPACEHAB stock at what we believe are attractive levels. Additionally, we believe repurchasing shares of the stock at current market prices, which are now trading well below the Company’s cash value per share of approximately $1.42 per diluted share, is a productive use of our capital,” concluded Mr. Kearney.

About SPACEHAB
With more than $100 million in annual revenue, SPACEHAB, Incorporated 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. Its Johnson Engineering subsidiary provides orbiter crew compartment integration, ISS stowage and configuration management, supports astronaut training, and builds space-flight mockup trainers at 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
htajyar@irintl.com

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