American Science and Engineering, Inc. Announces $15.5 Million in Revenues and $0.08 EPS For Second Quarter FY 2000.

BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 25, 1999--

American Science and Engineering, Inc. (AMEX:ASE) today reported after tax profits of $390,000 and earnings per share of $0.08 on revenues of $15.5 million in its second fiscal quarter ended September 30, 1999. Compared to the first quarter of FY 2000, after tax profits and revenues increased by 103% and 8% respectively. Earnings per share doubled from $0.04 reported in the first quarter.

Compared to the year ago quarter, revenues in the second quarter of FY 2000 increased by 8% and operating profits declined by 29%.

Ralph S. Sheridan, CEO and President, stated, "The second quarter slightly exceeded our financial expectations while we continued to solidify the foundation for future domestic and international growth. As previously disclosed, we expected flat revenues for the first half of this fiscal year while we invested in the technology and infrastructure necessary for future international expansion. Our $30 million in new orders this quarter is a strong indication that this expansion has begun.

"During the quarter, we strengthened our management team with the appointment of Ralph Foose as Vice President, Operations, formerly President of IRD Mechanalysis. Further, we demonstrated our next generation 1MeV X-ray source and significantly expanded our domestic and international field service and training team. The continued enthusiastic reception for our CargoSearch(tm) line of products was evidenced by orders for a total of 10 MobileSearch(tm) trucks from three different customers. These developments support our expectations for higher revenues and improved profitability in the second half of the fiscal year."

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.

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                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. 30,  Sept. 30,   Sept. 30,
                             1999       1998        1999       1998

Net sales and
 contract revenue         $ 15,459    $ 14,361   $ 29,775    $ 26,053

Gross margin                 4,534       4,749      8,979       9,202

Sales, general, and
 administrative expense      2,673       2,369      5,373       4,500

Research and development     1,204       1,458      2,603       2,866

Operating income               657         922      1,003       1,836

Other income (expense)         (28)          1        (65)        (37)

Income before provision
 for income taxes              629         923        938       1,799

Provision for
 income taxes                  239         369        356         719

Net income                $    390    $    554   $    582    $  1,080

Income per common share   $    .08    $    .11   $    .12    $    .21

Shares used in income
 per share calculation       4,998       5,083      5,008       5,097

The results of operations reported herein may not be indicative of future financial conditions or results of future operations.

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; 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 "Risk Factors" in the Company's Registration Statement on Form S-3 (SEC File No. 333-9151).