Analogic Corporation Breaks Ground on 100,000 Sq. Ft. Headquarters Expansion; Governor Romney Gives Keynote Address.

Business Editors

PEABODY, Mass.--(BUSINESS WIRE)--April 28, 2003

Today Analogic Corporation (NASDAQ: ALOG) officially broke ground on the Company's 100,000 square foot addition to its headquarters building in Peabody, Massachusetts.

Bernard M. Gordon, founder, Chairman and CEO of Analogic, led the groundbreaking ceremony, which included the Honorable Mitt Romney, Governor of Massachusetts, and Michael Bonfanti, Mayor of Peabody.

"Analogic's continuing expansion is extraordinary in light of our challenging economic climate," said Romney. "I know it is a testament to their hard work and I am confident of their continued growth and success."

The two-story, 100,000 square foot expansion will be connected to the headquarters, which currently encompasses 400,000 square feet of engineering, manufacturing and administrative space. This two-story addition will enable the Company to further consolidate its existing Massachusetts operations and to expand production capacity for its medical and security imaging system businesses. In 2002 Analogic established a 200,000 square foot manufacturing facility in Haverhill, Massachusetts, to produce a variety of security imaging systems, including checked baggage Explosive Detection Systems (EDSs).

Mr. Gordon remarked, "This expansion demonstrates Analogic's commitment to investing in its future and in the future of Massachusetts. There are opportunities for significant growth in both our health and security imaging businesses. We believe we will need the additional engineering and manufacturing capacity to meet what we foresee as a growing demand for advanced computed tomography and digital radiography systems in hospitals and clinics around the world and for security screening."

John Wood, who recently joined Analogic as President, commented, "We are investing in this facility in an era when some companies are pushing jobs not only out of the state but out of the country." Analogic currently employs over 1,100 of its 1,900 people in its Massachusetts facilities.

The new addition is expected to be occupied by early next year. Columbia Construction Company of North Reading, Massachusetts, is the general contractor on the project. Architects on the project are The Stubbins Associates, Cambridge, Massachusetts.

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.