Spacehab Faces NASDAQ Delisting Again; Stock Closes at 34 Cents

Spacehab Press Release
10 October 2008

SPACEHAB, Incorporated, a leading provider of commercial space services, today announced its receipt of a NASDAQ Staff Determination letter on October 7, 2008 indicating that the Company has failed to regain compliance with NASDAQ Marketplace Rule 4310(c)(4), and that its securities are, therefore, subject to delisting from The NASDAQ Capital Market.

Marketplace Rule 4310(c)(4) requires that the Company maintain a $1.00 bid price for its common stock traded on the NASDAQ Capitol Market Exchange. Following earlier notices of non-compliance with the requirement, the Company was granted a grace period, which expired on October 6, 2008.

The Company plans to request a hearing before a NASDAQ Listing Qualifications Panel to present its plan of compliance and request continued listing pending the completion of the plan. However, there can be no assurance the Panel will grant the Company’s request for continued listing.