American Science and Engineering, Inc. ; Announces $5 Million Increase to Bank Credit Facility.

BILLERICA, Mass.--(BUSINESS WIRE)--July 9, 1999--

American Science and Engineering, Inc. (AMEX:ASE) announced today a $5 million increase to their current credit facilities with State Street Bank and Trust Company and BankBoston, N.A. This increase raises the revolving line of credit arrangement to a maximum of $20 million from the current $15 million. The additional $8.25 million credit agreement supporting foreign export contracts which is guaranteed by the Export-Import Bank of the United States (Ex-Im Bank) remains unaffected.

This portion of the arrangement is used to support working capital and the issuance of standby letters of credit. The expanded credit facility will be used to support working capital and the issuance of standby letters of credit, allowing the Company to sustain its domestic business while continuing to pursue its aggressive overseas expansion strategy. The new agreement was arranged in anticipation of the Company's continued success in its globalization strategy that will require additional overseas trade credit resources.

Ralph Sheridan, CEO and President, stated, "This expanded credit commitment is another vote of confidence from our banking partners in the Company's expansion plans. It demonstrates that our team of State Street, BankBoston, and Ex-Im stands ready to support our globalization strategy. We have said that offering our clients customized financing arrangements should become a `core competency' of AS&E, and the agreement announced today helps make that a reality."

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).