8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report
January 12, 2007

(Date of earliest event reported)

SPACEHAB, Incorporated

(Exact name of registrant as specified in its charter)

Washington	0-27206	91-1273737
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer
incorporation or organization)		Identification Number)

12130 State Highway 3, Building 1
Webster, Texas  77598
(Address of principal executive offices, including zip code)

(713) 558-5000
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.05Costs Associated with Exit or Disposal Activities.

On January 12, 2007, the Board of Directors of SPACEHAB, Incorporated (the “Company”) approved a plan to reduce staffing and restructure corporate functions to streamline operations, improve efficiency and reduce overhead.  The plan calls for reduction of 36 positions, including 8 corporate administrative positions, as the Company’s activities in support of NASA’s space shuttle program moves toward the completion of the last contracted mission in June 2007.  The Company expects that the restructuring will be completed by Wednesday, January 17, 2007.

The Company anticipates that these actions, when fully implemented, will result in annualized cost savings of $3.9 million.  These cost reductions include a workforce reduction of an approximately 16%  spread between the Company’s Houston, Texas headquarters and Cape Canaveral, Florida payload processing facility.  SPACEHAB’s Astrotech spacecraft processing facilities in Titusville, Florida, Vandenberg Air Force Base, California and Long Beach, California are unaffected by the restructuring.  This restructuring is not expected to result in the closing on any of the Company’s facilities.

The restructuring activities constitute an exit or disposal plan activity under FASB Statement of Financial Accounting Standards No. 146, Accounting for Costs Associated with Exit or Disposal Activities, which will result in material charges under accounting principles generally accepted in the U.S.  The restructuring costs consist of a cash outlay of $450,000 of which $300,000 will be recognized as an expense relating to severance benefits.

A copy of the Company’s press release dated January 18, 2007, announcing the staff reduction is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference herein.

Section  9 – Financial Statements and Exhibits

Item 9.01	Financial Statements and Exhibits.
(c)	Exhibits.
	99.1	Press Release of SPACEHAB, Incorporated dated January 18, 2007

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SPACEHAB, Incorporated
January 18, 2007	By:	/s/ Brian K. Harrington
		Brian K. Harrington
		Sr. Vice President and Chief Financial
		Officer

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EX-99.1

	Exhibit 99.1
	SPACEHAB, Inc.
	12130 Highway 3, Bldg. 1
	Webster, Texas 77598-1504
	1.713.558.5000
	fax: 1.713.558.5960
	www.spacehab.com

FOR IMMEDIATE RELEASE

SPACEHAB UNVEILS INITIATIVE TO STREAMLINE COMPANY, REDUCE COSTS
Actions Expected to Contribute to Annual Savings of an Estimated $3.9 Million

Houston, Texas, January 18, 2007 — SPACEHAB, Incorporated (NASDAQ: SPAB), a leading provider of commercial space services, today announced plans to restructure corporate functions and reduce staff to streamline operations, improve efficiency, and lower overhead costs.

The Company anticipates the 15-20% reduction in workforce, approximately 36 positions out of 220, to result in savings of $3.9 million annually. The reductions eliminate redundant capabilities as SPACEHAB’s support of NASA’s space shuttle program moves toward completion of the Company’s last contracted mission, utilizing the Logistics Single Module on STS-118 currently scheduled for launch in June 2007. SPACEHAB announced that none of the Company’s facilities are closing as a result of the plan and that all necessary skills required to successfully support International Space Station resupply, and SPACEHAB’s 22nd, mission remain firmly in place to accomplish all mission critical milestones on time. The Houston, Texas Headquarters and Cape Canaveral, Florida payload processing facility are the only locations impacted by the immediate restructuring. Costs and planned cash expenditures associated with the restructuring are estimated at $450,000.

“After an exhaustive review of our business, we have aligned SPACEHAB’s infrastructure to enable the Company to serve our customers better than ever and achieve our strategic goals,” said SPACEHAB President and CEO Thomas B. Pickens, III. “Concentrating these core resources allows the Company to both maintain our signature high performance and remain competitive in the interest of our customers, partners, and shareholders.”

About SPACEHAB, Incorporated

Incorporated in 1984, SPACEHAB (www.spacehab.com) is a leading provider of commercial space products and services to NASA, international space agencies, Department of Defense, and private customers worldwide. The Company offers end-to-end space access solutions, space systems development, mission integration and pre-launch processing facilities and services, and large-scale government program support services. From securing a spaceflight opportunity and facilitating the integration of spacecraft and payloads for launch, to developing human habitats, supplying the International Space Station, and coordinating the transport and operation of cargo and experiments to and from orbit, SPACEHAB clearly demonstrates that “We Mean Business in Space.”

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:

Eva-Marie deCardenas

Corporate Marketing and Communications

SPACEHAB, Inc.

713.558.5071

edecardenas@spacehab.com

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