American Science and Engineering, Inc. Announces CargoSearch Facility Expansion.

Business/Technology Editors

BILLERICA, Mass.--(BUSINESS WIRE)--Jan. 10, 2000

American Science and Engineering, Inc. (AMEX:ASE) announced today the signing of a lease for an additional 56,000 square feet of manufacturing and office space, a 47% increase in square footage for its overall operations. This new facility located in Billerica, Massachusetts will be used to increase production capacity in its CargoSearch(TM) "family" of products.

The Company plans to relocate CargoSearch final assembly production from its existing 12,700 square foot "satellite" facility, as well as consolidate related subassembly, manufacturing engineering and materials functions from its main facility. The new facility will house approximately 80 employees when fully occupied in the early spring.

Ralph Foose, Vice President, Operations, stated, "The expected growing interest in our CargoSearch products, fueled by heightened awareness of global trade fraud issues, is driving the demand for additional manufacturing space. We also expect the new space will lead to manufacturing efficiencies as we will be consolidating most of our CargoSearch manufacturing operations under one roof."

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.

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).