American Science and Engineering, Inc. Receives $4 Million Order from U.S. Department of Defense for MobileSearch X-ray Inspection Systems.

Business Editors

Department of Defense Places Order Under $500 Million Blanket

Purchase Agreement

American Science and Engineering, Inc. (AMEX:ASE) announced today the receipt of an order from the U.S. Department of Defense (DoD) for two MobileSearch(TM) X-ray inspection systems, valued in excess of $4 million. The DoD currently employs American Science and Engineering (AS&E(R)) inspection systems for a variety of force protection and counter-terrorism applications around the world. However, this order is the first transaction from a three-year $500 million blanket purchase agreement awarded to AS&E in May 2002.

The MobileSearch(TM) X-ray inspection systems will provide DoD officials with a highly effective means for detecting weapons, plastic explosives, illegal drugs and other organic and inorganic contraband. MobileSearch(TM) X-ray inspection systems utilize a unique and effective combination of technologies - traditional transmission X-ray screening plus AS&E's patented Z(R) Backscatter imaging, which provides photo-like image quality for material discrimination. This convergence of technologies supplies trained inspectors with thorough and comprehensive information for detecting potential terrorist threats.

Ralph Sheridan, CEO and President, stated, "The DoD's order for two MobileSearch(TM) X-ray inspection systems demonstrates the commitment of the U.S. Government to deploy the highest detection capability for high-threat military bases."

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 material discrimination features of Z(R) Backscatter imaging with the penetration capability of high-energy X-rays for dense cargoes. 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 AS&E's web site at 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 sole-source component incorporated into the AS&E'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 ``Forward-Looking Information and Factors Affecting Future Performance'' in the Company's Annual Report on Form 10-K for fiscal year ending March 31, 2002.