American Science and Engineering, Inc.; Announces Expanded Credit Facilities Totaling $35.5 Million.

BILLERICA, Mass.--(BUSINESS WIRE)--Dec. 15, 1999--

American Science and Engineering, Inc. (AMEX:ASE) announced the signing of expanded credit facilities with State Street Bank and Trust Company, BankBoston N.A., and the Export-Import Bank of the United States (Ex-Im). The credit facilities include (1) a $20,000,000 revolving line of credit to support working capital and the issuance of standby letters of credit, and (2) a $15,500,000 Ex-Im guaranteed export credit agreement to support various current and future eligible foreign export contracts.

Ralph Sheridan, CEO and President, stated, "This new credit commitment is a critical element in our global expansion strategy. As we pioneer the application of X-ray inspection technology to address trade fraud problems, access to project financing capability is essential. This expanded financial resource enhances our ability to respond to a broad array of international client situations.

"The new credit line has two very attractive features," Sheridan continued. "First, it preserves our balance sheet and equity capacity by permitting us to use customers' funds to finance new foreign contracts. Secondly, the credit line is not contract-specific, so we can use it for most of the foreign sales opportunities we are now pursuing."

AS&E(R) 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. For more information on AS&E products and technologies, please visit the Company's web site at http://www.as-e.com.

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 statement contained herein include the following: significant reductions or delays in procurements of the Company's systems by the United States and other governments; 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).