SPACEHAB PROVIDES PROMINENT EXHIBIT AT SEATTLE’S MUSEUM OF FLIGHT

SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a leading provider of commercial space services, announced today that it has sold its high-fidelity International Space Station Destiny module mockup to The Museum of Flight in Seattle, Washington.

Virtually identical in appearance to the flight module currently orbiting 220 miles above earth, SPACEHAB’s Destiny consists of flight-like interior and exterior configurations, and is constructed with amazing attention to detail including a flat-panel screen observation window with earth views, an astronaut rest cabin, treadmill, experiment chamber, and storage facilities. Weighing in at more than 20,000 pounds, this replica has walk-on, see-through flooring and an integrated sound system that provides an out-of-this-world experience for its visitors.

Unlike recovered artifacts from previous spaceflight missions, which have for years served as popular museum exhibits, the modules of the International Space Station will never return intact to earth, and will not be displayed in museums. The only way space fans can share the space station experience is through high-fidelity mockups, such as those developed by SPACEHAB. The Destiny exhibit has been specifically designed to accurately convey the sights and sounds of NASA’s on-orbit laboratory.

“We are pleased to be bringing the human space program down to earth for enthusiasts of all ages to experience,” said Richard Fitts, Vice President of SPACEHAB Government Services. “Seattle’s Museum of Flight is world-renowned as being one of the premier museums of its kind. We are delighted to have our one-of-a-kind mockup join their extensive collection of aviation and space exhibits.”

Dr. Bonnie Dunbar, astronaut and veteran of five space missions, is The Museum of Flight’s President and Chief Executive Officer. A native of south central Washington, she is well versed in aerospace and aviation. “We are delighted that we have been able to procure this exemplary exhibit from SPACEHAB,” stated Dunbar. “The Destiny exhibit will be our cornerstone piece for expanding our aerospace displays.” The Museum of Flight is expecting delivery of the Destiny module by October 31, 2006 with assembly activities completed in spring 2007.

The actual Destiny module, which was delivered and attached to the International Space Station on the STS-98 space shuttle mission in 2001, is the primary research laboratory for U.S. payloads. It provides the capability to conduct a multitude of experiments, which ultimately contribute to the health, safety, and quality of life for people all over the world. Both the on-orbit and mockup versions are approximately 28 feet long and 14 feet in diameter, and include a 20-inch-diameter window located on the center module segment.

About the Museum of Flight
The independent, non-profit Museum of Flight is one of the largest air and space museums in the world. The Museum's collection includes more than 150 historically significant air- and spacecraft, as well as the Red Barn® – the original manufacturing facility of the Boeing Co. The Museum's aeronautical library and archival holdings are the largest on the West Coast. More than 100,000 children are served annually by the Museum's on-site and outreach educational programs – the most extensive museum-based youth aviation and space education program in the country. The Museum of Flight is one of only 750 museums in the nation and nine in Washington state that are fully accredited by the American Association of Museums.

About SPACEHAB, Incorporated
SPACEHAB, Incorporated (www.spacehab.com) is a leading provider of commercial and government space services with three primary business units. The Flight Services business unit develops, owns, and operates habitat and laboratory modules and cargo carriers aboard NASA's Space Shuttles for Space Station resupply and research purposes. SPACEHAB's Astrotech subsidiary provides payload processing support services for both commercial and government customers at company-owned facilities in Florida and California. The Company's Government Services business unit supports NASA's Johnson Space Center providing configuration management, product engineering, and support services for both the Space Station and Space Shuttle programs. 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 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.

For more information, contact:
Kimberly Campbell
Vice President, Corporate Marketing
and Communications
SPACEHAB, Inc.
Phone 713.558.5049
campbell@spacehab.com