American Science and Engineering, Inc. Adds New Capability for Detection of Radioactive Materials; AS&E Addresses Threat of 'Dirty Bombs' with Radiation Threat Detection.

Business/Technology Editors

BILLERICA, Mass.--(BUSINESS WIRE)--July 23, 2002

American Science and Engineering, Inc. (AMEX:ASE) today announced its unique ability (patent-pending) to detect radioactive sources while simultaneously generating X-ray images. American Science and Engineering's (AS&E(R)) patented Z(R) Backscatter technology allows its cargo and parcel inspection systems to be modified to detect minute amounts of fissile and non-fissile materials, serving as an early indicator of a radioactive threat that could contaminate a significant portion of a major city.

Radiation threat detection is particularly important in light of the potential terrorist threat of explosives packaged with radioactive material that scatters upon deployment, commonly referred to as "dirty bombs." Dirty bombs could have serious health and economic implications on the population of a targeted area.

"In the post 9/11 era, there is growing concern regarding radioactive devices being adopted as terrorist weapons," said Ralph Sheridan, CEO and President, AS&E. "This capability to detect potential radioactive threats adds a new dimension to AS&E system functionality. The heightened awareness of risks associated with dirty bombs makes radioactive materials detection a timely addition to the gauntlet of technologies available in the war against terrorism."

Unlike less sensitive, stand-alone devices available for radiation detection, AS&E systems can detect both neutron and gamma ray-producing radioactive sources. Moreover, system throughput is not reduced, as AS&E products can perform radioactive material detection while producing backscatter and transmission images simultaneously. To compliment the radiation threat detection, Backscatter X-ray images show the explosives that would be present if the radiation material was part of a complete bomb. The transmission image highlights the possible shielding surrounding a radiation source.

AS&E develops and manufactures sophisticated X-ray inspection products for critical detection and security applications. 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 and illegal immigration. 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. AS&E's Shaped Energy(TM) X-ray inspection systems combine material discrimination features of Z(R) Backscatter imaging with the penetration capability of high-energy X-rays for dense cargoes, without the problems caused by excessive radiation. AS&E's High Energy Systems Division manufactures linear accelerators for a variety of applications including medical, scientific, security, electron beam curing and non-destructive testing. For more information on AS&E products and technologies, please visit http://www.as-e.com.

Safe Harbor Statement

The foregoing press release contains statements concerning AS&E's financial performance, markets and business operations that may be considered "forward-looking" under applicable securities laws. AS&E 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 and other governments; disruption in the supply of any sole-source component incorporated into the AS&E'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; global economic developments and 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 "Forward-Looking Information and Factors Affecting Future Performance" in the Company's Annual Report on Form 10-K for fiscal year ending March 31, 2002.