American Science and Engineering, Inc. Announces New $25 Million Credit Facility with Silicon Valley Bank.

Business Editors/High-Tech Writers

BILLERICA, Mass.--(BUSINESS WIRE)--Aug. 4, 2003

American Science and Engineering, Inc. (AS&E) (AMEX:ASE) announced today the approval of a $25 million secured credit facility with Silicon Valley Bank (SVB) and the Export-Import Bank of the United States (Ex-Im). The facility consists of two parts: a $20 million Ex-Im guaranteed export credit agreement to support the Company's overseas contract and trade finance needs and a $5 million revolving credit facility to support the Company's routine working capital needs. The credit facility is a two-year arrangement that replaces the $25 million facility the Company had with HSBC Bank USA, which expired July 31, 2003.

Mr. Ted Owens, AS&E's Vice President, Treasurer and CFO commented, "We are extremely pleased to initiate this new relationship with Silicon Valley Bank. As we continue to expand our global presence it is important for us to find a bank to enhance our international finance capabilities to support global inspection and security programs. Silicon Valley Bank will help AS&E deliver this capability as they have a solid understanding of these markets and can develop innovative approaches to meet the unique financial needs of our clients."

Silicon Valley Bank provides diversified financial services to emerging growth and mature companies in the technology and life sciences markets. Founded in 1983 and headquartered in Santa Clara, California, the Company has nearly 1,000 employees and $4 billion in assets. More information on Silicon Valley Bank can be found at: http://www.svb.com.

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 the 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 source component incorporated into AS&E's products; 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, our ability to find a replacement for our Chief Executive Officer and future delays in federal funding. These and certain other factors which might cause actual results to differ materially from those projected are detailed from time to time in AS&E's periodic reports and registration statements filed with the Securities and Exchange Commission, which important factors are incorporated herein by reference. AS&E undertakes no obligation to update forward looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition or business over time.