SPACEHAB, Inc. 907 Gemini Houston, Texas 77058-2762 1.713.558.5000 fax: 1.713.558.5960 www.spacehab.com FOR IMMEDIATE RELEASE SPACEHAB REPORTS FINANCIAL RESULTS FOR FIRST QUARTER FISCAL YEAR 2009 Houston, Texas

REPORTS FINANCIAL RESULTS FOR FIRST QUARTER FISCAL YEAR 2009

Houston, Texas, November 13,

2008 SPACEHAB, Incorporated (NASDAQ/NMS: SPAB), a

leading provider of commercial space services, today announced financial

results for the first quarter ended September 30, 2008 of its fiscal year

First Quarter Results

SPACEHAB posted first quarter

fiscal 2009 net income of $55,000, or $0.00 per share, on revenue of $6.0

million compared with first quarter fiscal year 2008 net loss of $856,000, or

$.66 per share, on revenue of $8.6 million.

that our turnaround is complete, first quarter fiscal 2009 is a solid beginning

for our next phase as we continue to invest in the future of SPACEHAB, said

Chairman and Chief Executive Officer Thomas B. Pickens III. We believe our new business vision, combined

with improving liquidity and capital position will drive growth for the

September 30, 2008 SPACEHAB s cash and short-term investments were

approximately $13.1 million, of which $10.6 million is classified as Restricted

Cash consisting of advance payments received on a government contract to modify

certain spacecraft processing facilities. The Company carries a current

liability of $6.6 million for obligations under this construction contract.

This contract contains penalties of up to $3.0 million if SPACEHAB fails to complete

the modifications prior to September 30, 2009.

working capital at the end of the quarter was $2.2 million of which $1.0

million consisted of amounts outstanding on the Company s revolving line of

On September 25, 2008, the Company s Board of Directors

authorized the repurchase of up to $6 million of the company s common stock and

outstanding convertible notes due October 2010. Any purchases under SPACEHAB s security

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. On October 31, 2008, the

Company purchased $1,750,000 principal amount of its convertible notes on the

open market. SPACEHAB currently has

approximately 16.4 million shares of common stock and $5.1 million par value of

convertible notes outstanding.

Update of Ongoing Operations

of September 30, 2008 SPACEHAB carried a contract backlog of $25.8

million, which represents the expected value of contractually-committed work,

portions of which are subject to the space shuttle s launch schedule or future

government funding decisions. The majority of this backlog is from our wholly-owned

largest subsidiary, Astrotech Space Operations ( ASO ), which provides all

support necessary for its government and commercial satellite customers to

successfully process their multi-million dollar spacecraft for launch on

expendable launch vehicles. On October 20,

2008, ASO was awarded a $1.17 million contract from Alliant Techsystems (NYSE:

ATK) in support of ATK s planning and assembly of Ares I-X first stage hardware

to be flown during the 2009 test flight for the development of NASA s Ares I launch

vehicle. The 2009 test flight is a major

milestone for NASA s next-generation spacecraft and launch vehicle system.

ATK contract positions Astrotech as an integral component in the development of

the U.S. next-generation launch system, explains Ret. General Lance Lord,

Astrotech Chief Executive Officer. Leveraging

both our 23-year legacy in ground processing support services and ATK s

commitment and long-time reputation as a premier aerospace and defense company

will provide the framework for this mission s success and possibly expand our

scope into other long-term space exploration programs.

Company s BioSpace Technologies subsidiary continues to process microgravity

products and is currently preparing for the November 14, 2008 STS-126 space

shuttle mission, which will transport several samples as part of the ongoing

vaccine development program. This mission marks the fourth and final flight of

the previously discovered salmonella vaccine target, utilizing the Company s

proprietary microgravity processing ( MGP ) program and Vaccine Processing

Platform ( VPP ). BioSpace is an

extension of SPACEHAB s many years of experience preparing, launching and

operating science payloads in space, and plays a key role in transitioning the

Company from supporting government sponsored research in space to developing

production models that use the research to produce commercial products. This

new business initiative involves the commercial utilization of the

International Space Station ( ISS ) and other microgravity platforms for the

development of potentially valuable biotech products to save and improve lives

on Earth. Previous missions have successfully shown positive results as a

developmental step in the discovery of a potentially commercial vaccine for

Company s 1st Detect division continues to make progress in the development of

its ion trap mini mass spectrometer that began as a response to a Space Act

Agreement that was entered into with NASA in May 2005 to develop a

miniaturized mass spectrometer alternative for monitoring air quality on the

International Space Station.

October 15, 2008, President George W. Bush signed into law the NASA

Authorization Bill passed by the United States Congress, which authorized an

additional shuttle flight to the ISS.

SPACEHAB continues to maintain its remaining fleet of pressurized

modules and tunnel hardware for future missions and believes there may be an

opportunity to co-manifest the Logistics Single Module on this flight.

is a commercial 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 spacecraft pre-launch processing facilities and

services, production of valuable commercial products in space, development and

extension of space-based products to the consumer market, space access and

payload integration services program and engineering support ranging from

development and manufacturing of flight hardware to large scale government

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,