SPACEHAB Incorporated, (NASDAQ: SPAB), a provider of commercial space services, today announced the Company has entered into a Stock Purchase Agreement with certain investors for the purchase of 55,000 shares of the Company's Series D convertible preferred stock for a total price of $5.5 million.

In addition, the Company issued 150,150 shares of common stock upon entering into the Stock Purchase Agreement.

Consummation of the transaction is contingent upon NASA awarding SPACEHAB a funded Space Act Agreement under the Commercial Orbital Transportation Services (COTS) Program, scheduled to be awarded mid-February, and shareholder approval of the transaction.

The Series D convertible preferred stock will be converted into common stock six months after issuance based on a ratio determined by dividing $100.00 by the average of (x) the average of the closing price of the Company's common stock for the business days January 18-25, 2008 and (y) the average of the closing price of the Company's common stock for the five business days prior to the Company's receipt of written notification from NASA indicating the Company's receipt of a COTS award of at least $120 million.

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.