American Science And Engineering, Inc. Profits Increase For The Tenth Consecutive Quarter.

BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 27, 1997--American Science and Engineering, Inc. (AMEX:ASE) today reported profits of $685,000 ($.14 per share) on revenues of $8.7 million in its second fiscal quarter ended September 30, 1997, continuing a trend of increasing profits established over the previous nine quarters. Through the first six months the Company reported profits of $1,295,000 on revenues of $16.2 million, increases of 51% and 21%, respectively, from the comparable period of the last fiscal year.

Profits in the current quarter increased 52%, or $234,000, compared to the year-ago quarter and by 12%, or $75,000, compared to the previous quarter. Revenue in the second quarter increased 30%, or $2,020,000, over the year-ago period and increased 16%, or $1,173,000, over the previous quarter ended June 27, 1997.

Ralph S. Sheridan, President and Chief Executive Officer, stated, "This quarter's strong financial performance was driven by the record level of shipments of X-ray detection units. The application of Z(R) Backscatter for explosives detection continues to grow for high risk government facilities, both domestic and foreign. Major initiatives include an expansion of international marketing, particularly for CargoSearch(TM). In addition, investment in both research and new product development more than doubled. The investments in development include the improvement of CargoSearch(TM) products for performance and ruggedization for remote assignments.

"During the quarter, we achieved significant milestones in AS&E's family of cargo and vehicle inspection systems. The second MobileSearch(TM) system neared completion, and represents a significant improvement in imaging and operational performance. Work was begun under a $3.8 million contract received from the U.S. Department of Defense - Counterdrug Technology Development Program for two additional MobileSearch(TM) systems. These advanced prototype systems will incorporate upgrades which double their capacity. Subsequent to quarter-end, installation of the third of eight CargoSearch(TM) systems ordered by U.S. Customs was completed with final approval expected during the third quarter."

AS&E develops and manufactures sophisticated X-ray inspection products for critical detection and security applications. AS&E's patented Z(R) Backscatter technology detects plastic explosives, illegal drugs, and other contraband, even when artfully concealed in complex backgrounds by terrorists and smugglers.

                AMERICAN SCIENCE AND ENGINEERING, INC.
                    CONSOLIDATED FINANCIAL SUMMARY
      (Dollars and shares in thousands, except per share amounts)
                              (Unaudited)


                             Three Months Ended   Six Months Ended
                            Sept. 30,  Sept. 27, Sept. 30,  Sept. 27,
                              1997       1996      1997      1996
Net sales and
contract revenue             $ 8,705   $ 6,685   $16,237   $13,384

Operating Income                 677       463     1,293       861

Other income                      35         7        59        35
                             -------   -------   -------   -------

Income before provision
for income taxes                 712       470     1,352       896

Provision for income taxes        27        19        57        39
                             -------   -------   -------   -------

Net income                   $   685   $   451   $ 1,295   $   857
                             =======   =======   =======   =======

Income per common share      $   .14   $   .09   $   .27   $   .18
                             =======   =======   =======   =======

Shares used in income
per share calculation          4,953     4,891     4,881     4,801
                             =======   =======   =======   =======

Safe Harbor Statement

The foregoing press release contains statements concerning the Company's financial performance and business operations which may be considered "forward-looking" under applicable securities laws.

The Company wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements.

Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: Significant reductions or delays in procurements of the Company's systems by the United States Government; disruption in the supply of any sole-source component incorporated into the Company's products (of which there are several); litigation seeking to restrict the use of intellectual property used by the Company; potential product liability claims against the Company; global political trends and events which affect public perception of the threat presented by drugs, explosives and other contraband; the ability of governments and private organizations to fund purchases of the Company's products to address such threats; and the potential insufficiency of Company resources, including human resources, capital, plant and equipment and management systems, to accommodate any future growth. These and certain other factors which might cause actual results to differ materially from those projected are more fully set forth under the caption "Risk Factors" in the Company's Registration Statement on Form S-3 (SEC File No. 333-9151).

CONTACT: American Science and Engineering, Inc.

Jeffrey Bernfeld or Lee Steele, [phone]