American Science and Engineering, Inc. Receives Order for Radioactive Threat Detection Upgrade to MobileSearch X-ray Inspection System from Hong Kong Customs.

Business Editors/High-Tech Writers

BILLERICA, Mass.--(BUSINESS WIRE)--Dec. 19, 2002

Hong Kong Customs Counters Radioactive Threats at Ports

with New AS&E Technology

American Science and Engineering, Inc. (AMEX:ASE) today announced a contract with Hong Kong Customs and Excise Department for the addition of AS&E(R)'s new Radioactive Threat Detection (RTD) capability to its MobileSearch(TM) X-ray Inspection System. The enhanced system will be used at Hong Kong ports for the detection of radioactive threats in vehicles and cargo containers. Hong Kong Customs is the first customer to retrofit a MobileSearch system with RTD technology, a new product capability that was announced in July 2002.

"The detection of radiological threats in maritime cargo represents one of the most vexing problems in port security," said Ralph Sheridan, CEO and President. "The challenge is to find potential radioactive threats, either nuclear devices or dirty bombs, even when shielded. By combining traditional transmission technology, plus Z(R) Backscatter and Radioactive Threat Detection technologies, operators have the most information about the contents of the container. The high sensitivity of RTD technology can detect the presence of both gamma and neutron radiation. The transmission imaging will identify the anomaly of dense shielding, and Z(R) Backscatter technology, which provides photo-like images and organic discrimination, will highlight explosive material. As demonstrated by this order, Hong Kong Customs is a leader in applying technology to safeguard cargoes either originating from, or passing through, its ports."

Unlike less sensitive, stand-alone devices, AS&E Radiation Threat Detection systems can detect both neutron and gamma ray-producing radioactive sources. Moreover, system throughput is not reduced, as AS&E products can perform radioactive material detection while producing Z(R) Backscatter and transmission images simultaneously. Z(R) Backscatter technology produces photo-like images that highlight organic materials, complementing traditional transmission X-rays.

MobileSearch X-ray inspection systems have been successfully utilized by Hong Kong Customs in their ports for over two years. In November 2002, utilizing its MobileSearch system, Customs discovered HK $25 million worth of herbal cannabis - the largest seizure of its kind in the country since 1996 - in a 40' cargo container. More than 50 MobileSearch systems, truck-mounted, mobile X-ray units for screening vehicles and containers with both transmission and Z(R) Backscatter technologies, have been deployed globally to date.

About AS&E

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, 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 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.