American Science and Engineering, Inc. Receives $1.2 Million Service and Spare Parts Order Under New ID/IQ Subcontract.

BILLERICA, Mass. -- American Science and Engineering, Inc. (NASDAQ: ASEI) (AS&E(R)), a leader in X-ray detection technology announced today the receipt of an Indefinite Delivery/Indefinite Quantity (ID/IQ) subcontract to provide spare parts, maintenance, and training for its cargo and parcel X-ray inspection systems for a U.S. Government agency. The value of this first order is for $1.2 million with additional funds allocated for time and material services.

"AS&E is committed to supporting the U.S. Government in their security missions at home and abroad," said Anthony Fabiano, President and CEO. "With this latest agreement, the U.S Government will continue to receive high quality technical support for its ParcelSearch(TM) and CargoSearch(TM) family of products. AS&E systems provide U.S. security officials with a very effective means for detecting weapons, plastic explosives, illegal drugs, and other contraband, utilizing traditional transmission X-rays in combination with our proprietary Z(R) Backscatter(TM) technology."

AS&E's highly skilled Field Service Engineers (FSEs) provide support services worldwide. FSEs are available 7 days a week, 24 hours a day, and are located at AS&E offices in Asia, Europe, the Middle East and North America. AS&E provides comprehensive, cost-effective spare parts solutions that are customized for client systems. In addition, AS&E has assembled a world-class Technical Support and Call Coordinator staff at headquarters in Billerica. They ensure AS&E X-ray inspection systems are serviced in the most timely and effective manner possible.

About AS&E(R)

American Science and Engineering, Inc. (AS&E) is the leading worldwide supplier of innovative X-ray inspection and screening systems. With more than 45 years experience in developing advanced X-ray security systems, the Company's product line utilizes a variety of technologies including patented Z(R) Backscatter(TM), Shaped Energy(TM) and Radioactive Threat Detection (RTD). These technologies offer superior detection of threats including plastic explosives, plastic weapons, illegal drugs, other contraband, dirty bombs, and nuclear devices. AS&E offers a complete range of X-ray inspection products including Z(R) Backscatter screening systems, CargoSearch(TM), and ParcelSearch(TM) inspection systems, used for critical detection and security applications to combat terrorism, drug and weapon smuggling, trade fraud, and illegal immigration. AS&E customers include leading governmental agencies, border authorities, military bases, airports, and corporations worldwide, including the U.S. Department of Homeland Security, U.S. Department of Defense, U.S. Customs and Border Protection, Royal Thai Police, HM Customs & Excise (U.K.), and Hong Kong Customs. For more information on AS&E products and technologies, please visit 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.