Analogic Corporation Announces Strategic Marketing Agreement for Threat Detection Products with Lockheed Martin Corporation.

Business Editors/High-Tech Writers

PEABODY, Mass.--(BUSINESS WIRE)--March 11, 2003

Bernard M. Gordon, founder, Chairman of the Board and Chief Executive Officer of Analogic Corporation (NASDAQ: ALOG), announced today that Analogic has entered into a strategic marketing agreement with Lockheed Martin Corporation (NYSE:LMT) to market threat detection products. A wide range of threat detection products that will be developed and manufactured by Analogic are included in this agreement.

The first product to be marketed under this agreement is an innovative portal sentry to identify threat materials to prevent them from being carried on to aircraft in the carry-on luggage. Analogic is developing a small, state-of-the-art Computed Tomography (CT) scanner with approximately the same footprint as the X-ray machines currently in use in airports. Analogic has named this machine "COBRA," an acronym for Carry-On Baggage Real-time Assessment. This relatively low-cost, high-speed scanning system is able to detect explosives and other contraband, such as guns and knives, by imaging the complete contents of the bag quickly in three dimensions.

Advanced Analogic detection software automatically identifies potential threats for the operator, who can review the contents of an alarmed bag from multiple angles on the system monitor. Analogic and Lockheed Martin presently plan to incorporate a combination of innovative detection technologies, such as quadrupole resonance, to meet anticipated performance requirements.

The system's compact size, relatively low cost, high throughput and high level of reliability open up a number of applications for the innovative portal detection system. These include examining small parcels, mail, and carry-in baggage at embassies, federal buildings, and commercial, financial and information technology centers.

Bernard Gordon, chairman of Analogic, said, "Two prototypes of the portal sentry system have been in development. We expect to have systems in certification testing with the TSA by November and deliver a substantial number of units before the end of this calendar year, with increasing numbers thereafter. We believe there will be a substantial and growing market for this detection system in aviation and a number of other security applications."

Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems sold primarily to Original Equipment Manufacturers (OEMs). The Company is recognized worldwide for advancing the state of the art in Computed Tomography (CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging (MRI), Patient Monitoring, Cardiovascular Information Management, and Embedded Multiprocessing.

This press release contains the Company's or management's intentions, hopes, beliefs, expectations or predictions. These are considered "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements (statements which are not historical facts) in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements, including statements about product development, market and industry trends, strategic initiatives, regulatory approvals, sales, profits, expenses, price trends, research and development expenses and trends, and capital expenditures involve risk and uncertainties and actual events and results may differ significantly from those in any forward-looking statements. Actual results may differ materially from those indicated by such statements as a result of various factors, including those discussed in the company's periodic reports filed with the SEC.