1st Detect Awarded SBIR from the Defense Threat Reduction Agency

1^st Detect Corporation, a subsidiary of Astrotech Corporation (Nasdaq:ASTC), announced today it is the recipient of a Phase I award from the U.S. Army’s Chemical and Biological Defense (CBD) Small Business Innovation Research (SBIR) Program. The award will go to the development of a novel sample inlet system to significantly improve the sensitivity of mass spectrometers.

"1^st Detect is proud to receive this SBIR award from the U.S. Army as it clearly demonstrates the successful commercial transition of a space based technology,” commented John Porter, chief executive officer for the Company.

The Chemical and Biological Defense Small Business Innovation Research Program was created to develop and transition innovative CBD technologies between the Department of Defense and the private sector for mutual benefit. The program targets those technology efforts that maximize a strong defensive posture in a biological or chemical environment using passive and active means as deterrents.

"The development of this new technology will greatly enhance the military’s ability to detect chemical threats by increasing the sensitivity of mass spectrometers by orders of magnitude,” added David Rafferty, president and chief technology officer for 1^st Detect.

With this grant, 1^st Detect will build on its existing technology to develop a sample inlet system that will improve the ability to detect chemicals using a mass spectrometer. Upon meeting certain milestones and establishing project feasibility, the work may lead to a Phase II SBIR project to develop a prototype.

About 1^st Detect Corporation

1^st Detect Corporation was formed by Astrotech Corporation (Nasdaq: ASTC) to commercialize miniature-mass spectrometer technology first developed for the International Space Station (ISS). 1^st Detect offers the Miniature Chemical Detector, a breakthrough device in mass spectrometry that fills a niche by being highly accurate, lightweight, battery-powered, durable and inexpensive. The 1^st Detect ion trap based design is roughly the size of a shoe box, weighs approximately 12 pounds, and is capable of battery operation. Additionally, the Miniature Chemical Detector is capable of detecting residues and vapors from explosives, chemical warfare agents, toxic chemicals, food and beverage contamination, illicit drugs and pollution. It is also very sensitive, accurate, and fast which provides orders of magnitude better informing power than competing products. For more information about 1^st Detect, please see our website at www.1stDetect.com

About Astrotech Corporation

Astrotech Corporation is one of the first commercial space companies and remains a strong entrepreneurial leader in the aerospace industry. The Company serves our government and commercial satellite and spacecraft customers with our pre-launch services from our Astrotech Space Operations subsidiary. Additionally, the Company incubates space technology businesses, now having formed three companies; the 1st Detect Corporation which is developing a breakthrough mini-mass spectrometer first created for the International Space Station; Astrogenetix, Inc. which is producing biotech products in space and has recently developed a vaccine candidate for Salmonella; and Airward Corporation which is drawing on its space heritage of sending cargo to space and is selling hazardous material containers for the airline industry.

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.