American Science and Engineering Inc. Reports Results for the First Quarter of FY 1996; Profitability is achieved; Outlook remains positive.

BILLERICA, Mass.--(BUSINESS WIRE)--Aug. 15, 1995--American Science and Engineering Inc. announced a net profit of $52,000 for the first fiscal quarter ended June 30, 1995, or $.01 per share on revenues of $3,517,000.

These results are a substantial improvement over the results reported in both the previous quarter (a loss of $564,000 on revenues of $3,057,000) and the comparable quarter one year ago (a loss of $463,000 on revenues of $2,523,000).

Ralph S. Sheridan, President, stated, "AS&E's results for this quarter provide further evidence that our turnaround program is working. Revenues and profit contribution from X-ray systems and related field services are improving, and our backlog in these sectors continues to grow modestly. There has been a marked increase in sales of the Model 66 for MailSearch(TM) and LobbySearch(TM) for building security. The tragic events of Oklahoma City and the recent Unabomb killing have resulted in an increase in sales activity for both government and corporate security. The balance of equipment sales were to domestic and international customs agencies.

"CARGOSEARCH(TM)" was recognized by U.S. Customs as an operational success in terms of drug seizures and operating uptime. AS&E was asked to testify before House Appropriation Subcommittees for Armed Services and Treasury/Postal in support of a U.S. Customs funding request for 10 systems. The testimony was received favorably, with the House committing $37 million in funding for truck inspection on the Southwest border. Building on the performance results of CAERGOSEARCH at Otay Mesa, California, we launched the foreign marketing program for cargo and vehicle inspection."

In June AS&E achieved a major staffing coup with the addition of Dr. Lee Grodzins as a Vice President for Advanced Development. Dr. Grodzins joins AS&E from M.I.T., where he has been a recognized authority in X-ray inspection technologies. Dr. Grodzins will focus his efforts on funded research for fundamental improvements to X-ray detection and imaging for improved threat identification.

AS&E develops and manufactures sophisticated X-ray inspection systems for critical detection and security screening solutions. Its patented Z(R) Backscatter technology detects plastic explosives, illegal drugs, and other contraband, even when artfully concealed by terrorists or smugglers. -0-

                 American Science and Engineering Inc.
                    Consolidated Financial Summary
            (Dollars in thousands, except per share amounts)

                                       (Unaudited)
                                    Three Months Ended
                             June 30, 1995      July 1, 1994

Net sales and
 contract revenues             $3,517             $2,523
Operating income (loss)            50               (445)
Other (expense) income              2                (18)
Income (loss) before provision
 for income taxes                  52               (463)
Provision for income taxes         --                 --
Net income (loss)              $   52             $ (463)
Income (loss) per
 common share                  $  .01             $ (.11)
Shares used in income (loss)
 per-share calculations     4,317,000          4,129,000

The results of operations reported herein may not be indicative of future financial conditions or results of future operations.

CONTACT: American Science and Engineering Inc.

James C. Nemiah or Lee C. Steele, 508/262-8700