American Science and Engineering reports strong results for the second quarter of FY 1996; Profitability improves; Backlog grows dramatically.

BILLERICA, Mass.--(BUSINESS WIRE)--Nov. 6, 1995--American Science and Engineering Inc. (ASE) announced increased sales, a net profit of $155,000 ($.04 per share), and a large increase in new order backlog during the second fiscal quarter ended Sept. 29, 1995.

In the second quarter, revenues increased by 10 percent to nearly $3.9 million and profits tripled to $155,000, compared to the previous first quarter. Shipments of security equipment and related field services revenues were particularly strong, increasing by $511,000 or 18 percent over the previous quarter.

Even more significantly, order backlog jumped to over $6.8 million, an increase of 142 percent from the backlog reported at June 30, 1995. At the present running rate, the current backlog represents between five and six months of shipments. Included in the backlog are large orders from the U.S. Capitol Police, the Federal Emergency Management Agency, the U.S. Post Office and several international agencies.

Separately, the company announced the shipment of its first EXR (Enhanced X-Ray) System to the Federal Aviation Administration, embodying the next generation of explosive detection capability. Features include highly sophisticated digital signal processing, the latest in imaging technology and both automatic and operator-assisted explosive detection. This successful program will lead to new products in the emerging market for automated screening of baggage and parcels.

Ralph Sheridan, president of AS&E, observed that "these recent, very positive developments are further evidence that the market is responding to our turnaround program. The rapid growth in orders is particularly broad-based, coming from both new and established customers, across the full spectrum of products.

"We have stated that `AS&E is the choice of experts when the threat is real.' Three recent orders conclusively support this position:

o 21 Z Backscatter X-Ray systems will be installed to protect the

U.S. Capitol Building and the House and Senate Office buildings in

Washington;

o 3 Model 101ZZ Trailers will be custom-designed for detection of

explosives at the 1996 Olympics in Atlanta; and

o 16 Model 101Z systems will be installed in the offices of the

Federal Emergency Management Agency throughout the country.

"With AS&E's improved financial condition and the growing confidence of our customers, we are competing vigorously to deliver innovative equipment that meets the specific operational detection needs of the professional security, drug enforcement and customs marketplaces."

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

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                AMERICAN SCIENCE AND ENGINEERING INC.
                  CONSOLIDATED FINANCIAL SUMMARY
           (Dollars in thousands, except per share amounts)
                          (Unaudited)

                   Three Months Ended       Six Months Ended
                  Sept. 29,  Sept. 30,    Sept. 29,   Sept. 30,
                    1995       1994         1995        1994

Net sales and
 contract
 revenues        $ 3,882     $ 3,397      $ 7,399     $ 5,922

Operating
 income (loss)       215         (12)         265        (455)

Other income
 (expense)           (60)         11          (58)         (9)

Income (loss)
 before provision
 for income taxes    155          (1)           -        (464)

Provision for
 income taxes          -           -            -           -

Net income
 (loss)          $   155     $    (1)     $   207     $  (464)

Income (loss)
 per common
 share           $   .04     $  (.00)     $   .05     $  (.11)

Shares used
 in income
 (loss) per
 share
 calculations   4,408,881    4,129,000    4,292,195   4,129,000

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

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CONTACT: American Science & Engineering

Lee C. Steele/James C. Nemiah

508/262-8700