American Science and Engineering, Inc. Receives a Service and Maintenance Renewal Contract from U.S. Government Valued Up To $22 Million.

The first phase of the contract is funded at $18.3 million

BILLERICA, Mass. -- American Science and Engineering, Inc. (AS&E([R])) (NASDAQ: ASEI), a leader in X-ray detection technology, announced today the receipt of a $22 million two-phased service renewal contract from the U.S. government to support their fleet of Z Backscatter Vans([TM]) (ZBV([TM])). The contract includes service, support, spare parts, and labor warranty for a significant quantity of Z Backscatter Vans located in high-risk areas. The first phase of the contract is funded at $18.3 million.

"The U.S. government has demonstrated its confidence in AS&E for the fourth year in a row to provide support for their fleet of Z Backscatter Vans overseas," said Anthony Fabiano, President and CEO. "It is a high priority for our Field Service organization to maintain these ZBVs at optimal performance for the most critical counterterrorism missions. We continue to hear positive field reports from our customers on the ZBV's performance and our service. Also, we are very grateful for the continuing opportunity to serve this most valued customer."

AS&E's Z Backscatter Van[TM]: The Most Maneuverable, Versatile Mobile Screening System on the Market

A breakthrough in X-ray detection technology, AS&E's Z Backscatter Van is the Number One selling non-intrusive mobile inspection system on the market. The ZBV is a low-cost, highly mobile screening system built into a commercially available delivery van. The ZBV allows for immediate deployment in response to security threats, and its high throughput capability facilitates rapid inspections. The system's unique "drive-by" capability allows one or two operators to conduct X-ray imaging while the ZBV drives past suspect vehicles and objects. For personnel safety in dangerous environments, a remote console is available for operating the system in stationary mode from a distance of up to 500 meters.

AS&E's Patented Z Backscatter X-Ray

The ZBV leverages the Company's patented Z Backscatter X-ray technology -- a proprietary, industry-leading capability that reveals the threats that competitive systems miss -- including explosives, plastic weapons, and drugs. Z Backscatter technology produces photo-like images of the contents of a container or vehicle, highlighting organic materials. Based on the X-ray Compton Scattering effect, Z Backscatter technology works by detecting and highlighting "low Z" materials (items that contain low atomic number elements such as carbon, hydrogen, oxygen, and nitrogen). Z Backscatter images display organic materials by directing a sweeping beam of X-rays at the object under examination, and then measuring and plotting the intensity of scattered X-rays as a function of the beam position.

AS&E's Worldwide Service and Support

AS&E's highly skilled Field Service Engineers (FSEs) provide support services worldwide. Each FSE, with a technical degree in electrical and mechanical engineering or equivalent experience, is trained in the operation and repair of electronics, hydraulics, pneumatics, mechanics, electrical systems, and computers. Available 7 days a week, 24 hours a day, FSEs are located at AS&E offices in Asia, Europe, the Middle East, and North America.

About AS&E([R])

American Science and Engineering, Inc. (AS&E) is the leading worldwide supplier of innovative X-ray inspection systems. With 50 years of experience in developing advanced X-ray security systems, the Company's product line utilizes a combination of technologies, including patented Z Backscatter technology, Radioactive Threat Detection (RTD), high energy transmission and dual energy transmission X-ray. These technologies offer superior X-ray threat detection for plastic explosives, plastic weapons, liquid explosives, dirty bombs and nuclear devices. AS&E's complete range of products include cargo inspection systems for port and border security, baggage screening systems for facility and aviation security, and personnel and passenger screening systems. AS&E systems protect high-threat facilities and help combat terrorism and trade fraud, drug smuggling, weapon smuggling, and illegal immigration and people smuggling. AS&E customers include leading government agencies, border authorities, military bases, airports and corporations worldwide, including the U.S. Department of Homeland Security (DHS), U.S. Department of Defense (DoD), U.S. Customs and Border Protection (CBP), North Atlantic Treaty Organization (NATO), HM Revenue & Customs (U.K.), Hong Kong Customs, and Abu Dhabi 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.