American Science and Engineering, Inc. Receives $1.1 Million Order from U.S. Government for Continued Research and Development.

BILLERICA, Mass. -- American Science and Engineering, Inc. (AMEX: ASE) (AS&E(R)), a leader in X-ray detection technology, announced today the receipt of an order from the U.S. Government for continued work on a program to develop upgrades to existing X-ray inspection systems. Valued at approximately $1.1 million, the order covers labor, supplies, materials and support. The R&D effort will add both increased functionality and ease-of-use to these X-ray products.

"I am pleased to announce this order for continuing R&D work with the U.S. Government," said Anthony Fabiano, President and CEO. "AS&E began in 1958 as a small R&D firm developing X-ray technologies for NASA. Since then, AS&E has grown in size and into new markets while maintaining exceptional scientific leadership. Proprietary Z(R) Backscatter technology gives our systems unparalleled detection capabilities, making it the technology of choice when the highest levels of security are required. This award underscores AS&E's commitment to leading-edge technologies and the value of these innovations to the U.S. Government."

About AS&E(R)

American Science and Engineering, Inc. develops and manufactures state-of-the-art X-ray inspection systems for homeland security and other critical defense applications. AS&E continues to innovate, create and develop new products by investing in new ideas through research and development, and evolving its technology to meet the needs of an ever-changing world. 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, 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.