American Science and Engineering, Inc. Receives Order from U.S. Government for Z Backscatter Van X-ray Screening System.

Business Editors

BILLERICA, Mass.--(BUSINESS WIRE)--Jan. 8, 2004

Latest Order Represents Eighth ZBV Sold, Demonstrates Increasing Demand for Z(R) Backscatter Technology in Counterterrorism Applications

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 a U.S. Government agency for a Z(R) Backscatter Van(TM) (ZBV), the eighth system sold to date. Valued in excess of $750,000, the order includes installation and operator training, as well as custom enhancements for counterterrorism missions which add significant value. The Company anticipates that this ZBV will be shipped and the revenue recognized in the current fiscal year.

"This is the eighth ZBV we've sold to date," said Anthony Fabiano, President and CEO. "The ZBV is a unique product that is ideal for use in the War on Terror. Since the launch of the Z Backscatter Van in May 2003, the response in the marketplace has been extremely enthusiastic. We are starting to see sales momentum with this latest order from the U.S. Government, as well as recent orders from DHS and the DoD. AS&E has a long-standing relationship with the federal government, and I am pleased that we continue to supply them with state-of-the-art X-ray inspection solutions for critical security operations."

The ZBV is an extremely mobile, cost-effective and high-speed X-ray inspection tool built into a commercially available delivery van. The system utilizes one-sided Z(R) Backscatter imaging, AS&E's proprietary X-ray technology that creates photo-like images that highlight explosives and other organic materials. Security personnel can operate the ZBV by simply driving it alongside suspect vehicles or cargo containers, or by parking the ZBV and allowing subjects to pass by the stationary system.

The ZBV is also available with Radioactive Threat Detection (RTD) technology, which affords operators the ability to detect and locate radioactive threats hidden in cargo.

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 and other factors which may cause delays in production and delivery schedules; litigation seeking to restrict the use of intellectual property used by the Company; potential product liability claims against the Company; failure of any of our products to meet performance requirements or to continue to operate reliably because of unexpected design flaws or manufacturing defects, 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.