American Science and Engineering, Inc.; Announces Receipt of Order From U.S. Government for CargoSearch Technology Upgrade.

BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 7, 1999--

American Science and Engineering, Inc. (AMEX:ASE) announced today the receipt of a technology upgrade order from the US Government for eight fixed-site CargoSearch(tm) systems along the Southwest Border of the United States. The order provides for the upgrade of the systems to a Windows NT(tm) platform, increasing operational effectiveness and networking capabilities. These improvements will be completed over the next eighteen months in the CargoSearch installed base, and will be incorporated into the remaining system still to be delivered.

Ralph Sheridan, Chief Executive Officer and President stated "This is an important product advancement demonstrating the long term value of CargoSearch systems as upgradeable platforms preserving our client's investment by incorporating new technologies. This project will improve ease of operation and communication with other client facilities. This new operating system also achieves a goal of facilitating data mining in selection of inspection targets and the sharing of results. This upgrade demonstrates our commitment to teaming with our clients to help them achieve their objectives. Additionally, we will begin to see the impact of this seven figure order in the third fiscal quarter."

The CargoSearch system is part of AS&E's family of cargo and vehicle inspection systems. These systems are solving an expanding range of inspection problems including detecting car and truck bombs, combating weapons smuggling, and imaging cargo to expose trade fraud. AS&E has delivered more X-ray cargo inspection systems than anyone in the industry, and continues to be the leader in X-ray detection technology and applications.

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

Windows NT(tm) is a registered trademark of Microsoft Corporation 

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).