SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, today announced that in accordance with the milestone requirements of the previously announced Space Act Agreement (SAA) with NASA, the Company hosted a formal Systems Requirements Review of its Advanced Research and Conventional Technology Utilization Spacecraft (ARCTUS) on October 25-26 at its Houston Headquarters facility.

Attendees included representatives from NASA, the Federal Aviation Administration, United Launch Alliance, Cimarron, Inc., and Lockheed Martin.

The unfunded SAA, signed in June 2007, facilitates the Company's development of a commercial transportation system capable of ferrying cargo between Earth and Low Earth Orbit. SPACEHAB has engaged key suppliers to support major elements of the ARCTUS program including launch services provider, United Launch Alliance, spacecraft bus component supplier, Lockheed Martin Space Systems, Cimarron, tasked with mission control center development and integration, and Odyssey Space Research, LLC, providing trajectory analysis and integration services.

"Our ARCTUS solution is a low cost, low risk design solution that seamlessly integrates flight proven components and does not require the development of a new launch vehicle," said Rick Fitts, ARCTUS Program Manager. "With the arrival of the ARCTUS pressure shell mockup into our Houston facilities in July, we received the first hardware component of this innovative program," said Fitts. SPACEHAB engineers are currently using the 500 pound mockup for internal pressurized cargo accommodation designs.

Capable of delivering and returning pressurized cargo to and from Low Earth Orbit, ARCTUS will supply a critical 'means to an end' for two distinct, yet complementary, space transport needs. First, ARCTUS supports NASA's requirement to fill the International Space Station (ISS) cargo transport gap between the space shuttle's planned 2010 retirement and when its replacement Constellation program becomes operational in 2015. Second, ARCTUS provides SPACEHAB with an additional means of space access in support of the Company's previously announced microgravity processing initiatives, many of which are destined for production and processing on the ISS.

Consistent with the terms of the SAA, SPACEHAB conducted its Program Management Plan review in June 2007. In addition, a spacecraft Concept Review, including representatives from all ARCTUS spacecraft systems providers, was held on November 8, 2007 at Lockheed Martin's facilities in Denver, Colorado. The ARCTUS team continues to develop the spacecraft vehicle and ground systems design and is focused on the next major milestone, the Preliminary Design Review scheduled for early 2008.

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.