Astrotech Corporation Reports First Quarter 2010 Financial Results

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* Focus on our core business, Astrotech Space Operations ("ASO"), and impact of
the business restructuring resulted in the third consecutive quarter of positive
earnings
* Successful completion of our nearly $40.0 million ASO satellite payload
processing facility with five-meter high bay at Vandenberg Air Force Base
* Trailing twelve month revenue of $33.8 million

AUSTIN, Texas--(Business Wire)--
Astrotech Corporation (NASDAQ: ASTC), a leading provider of commercial space
services, today announced financial results for the first quarter ended
September 30, 2009 of its fiscal year 2010.

First Quarter Results

The Company posted a first quarter fiscal year 2010 net income of $0.8 million,
or $0.04 per diluted share on revenue of $7.8 million, compared with a first
quarter fiscal year 2009 net income of $0.1 million, or $0.00 per diluted share,
on revenue of $6.0 million. These results represent a 30% increase in revenue
year over year, resulting from consistent execution on a strong launch schedule.

"Our core business continues to deliver sound results, despite the difficult
macro-economic environment," said Thomas B. Pickens III, Astrotech`s Chairman
and Chief Executive Officer. "We look forward to building our strong execution
of the past three quarters and delivering increased value for our shareholders."

Update of Ongoing Operations

The Company experienced another strong quarter for ASO, with all $7.8 million of
consolidated revenue generated by that business. ASO supported two successful
launches in the first quarter, including NASA`s Space Tracking and Surveillance
System (STSS) Demonstrator satellites and a next-generation satellite, designed
and built by Lockheed Martin for the U.S. government, designated as PAN. In
addition to these two launches, ASO provided support for several missions which
are in process at the Company`s facilities in Titusville, Florida and Vandenberg
Air Force Base, which are currently operating at full capacity.

The company`s contractual backlog and scheduled but uncommitted missions through
fiscal year 2011 is $28.5 million. The majority is for ASO pre-launch satellite
processing services, which include hardware launch preparation; advance
planning; use of unique satellite preparation facilities; and, spacecraft
checkout, encapsulation, fueling, transport, and remote control through launch.

Financial Position and Liquidity

Working capital reached $9.3 million on September 30, 2009, which included $15.5
million of accounts receivable. On September 30, 2009, $3.6 million of the term
loan and $1.0 million of the revolving credit facility were outstanding. The
Company repaid the $1.0 million draw on the revolving credit facility in full
during October 2009.

About Astrotech Corporation

Astrotech Corporation (Nasdaq: ASTC) is a commercial aerospace company that
provides spacecraft payload processing and government services, designs and
manufactures space hardware, and commercializes space technologies for use on
Earth. The Company serves our government and commercial satellite and spacecraft
customers with our pre-launch services from our Astrotech Space Operations (ASO)
subsidiary and incubates space technology businesses now having formed three
companies; the 1st Detect Corporation which is developing a breakthrough
mini-mass spectrometer first developed for the International Space Station;
Astrogenetix, Inc. is producing biotech products in space and has recently
developed a vaccine candidate for Salmonella; and Airward Corporation 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.

Tables follow

ASTROTECH CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(In thousands, except per share data)

Three Months
Ended September 30,
2009 2008
Revenue $ 7,762 $ 5,974
Costs of revenue 2,928 3,518
Gross profit 4,834 2,456

Operating expenses:
Selling, general and administrative 3,075 1,699
Research and development 674 573
Total operating expenses 3,749 2,272
Income from operations 1,085 184
Interest and other expense, net (260 ) (129 )
Income before income taxes 825 55
Income Tax Expense (25 ) -
Net income $ 800 $ 55

Net income per share- basic $ 0.05 $ 0.00
Weighted average common shares outstanding, basic 17,303 16,109
Net income per share, diluted $ 0.04 $ 0.00
Weighted average common shares outstanding, diluted 18,166 16,581
See accompanying notes to unaudited condensed consolidated financial statements.

ASTROTECH CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

September 30, June 30,

2009
2009
ASSETS
Cash and cash equivalents $ 2,697 $ 4,730
Accounts receivable, net 15,539 12,279
Prepaid expenses and other current assets 570 591
Total current assets 18,806 17,600
Property, plant, and equipment, net 40,384 40,226
Other assets, net 906 1,093
Total assets $ 60,096 $ 58,919
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 9,502 $ 9,182
Long-term liabilities 9,070 9,189
Stockholders` equity 41,524 40,548
Total liabilities and stockholders` equity $ 60,096 $ 58,919

Astrotech Corporation
Scott Haywood, 512-485-9520
Corporate Marketing and Communications
shaywood@astrotechcorp.com

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