Analogic Corporation and Sanders Design International to Develop Missile Self-Protection Systems for Commercial Aircraft.

Business Editors/High-Tech Writers

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

Analogic Corporation (NASDAQ: ALOG) announced today that it has entered into an agreement with Sanders Design International of Wilton, New Hampshire, for the development, manufacture and deployment of an aircraft infrared countermeasures (IRCM) system for the protection of commercial airliners against shoulder-fired, heat-seeking missiles.

Analogic Chairman Bernard Gordon said, "This agreement enhances Analogic's ability to continue its successful penetration into the airline security market to supplement its Computed Tomography (CT) - based checked luggage inspection system (the EXACT(TM)), the "heart" of certified Explosive Detection Systems (EDS's) being deployed at airport terminals for the U. S. Transportation Security Agency (TSA)."

Sanders Design (SDI), headed by Royden C. Sanders, Jr., founder of Sanders Associates with substantial expertise in electronic countermeasure systems, has invented an infrared countermeasure self-protection system to defend low-flying commercial airliners and military aircraft from shoulder-fired, infrared-seeking missiles in any uncontrolled airport vicinity. Currently, approximately 6800 U.S. commercial aircraft are vulnerable to IR guided missiles during low-level approach, landing, and take-off situations, up to 15,000 feet altitude. SDI chairman Sanders said, "Our infrared technology, coupled with Analogic's extensive knowledge of signal and image processing and control, and their considerable manufacturing experience, provides the basis for a successful team approach to this technological challenge."

"The low-cost IRCM system offers potentially 'near perfect protection' against single or multiple simultaneously launched IR missiles at a small fraction of the cost for currently available IRCM systems valued at one million dollars or more per aircraft," Mr. Sanders said. "The projected reliability of the system is within standard maintenance periods and serviceable by airline ground personnel."

On February 5, 2003, the "Commercial Airline Missile Defense Act" was introduced in the House and Senate as a result of an attempted shoot down of an Israeli airliner in Africa by IR missiles in November 2002. This proposed legislation requires all commercial aircraft to be outfitted with an automatic IRCM system to counter IR missiles.

Bernard Gordon noted, " We believe that the combination of Sanders' pioneering infrared expertise with Analogic's inventive engineering and manufacturing capabilities should further strengthen our nation's ability to provide advanced security equipment for air travel and other applications."

"Analogic has become a leading supplier of systems and subsystems to examine checked luggage for aircraft," Gordon added. "The Company developed and manufactures the EXplosive Assessment Computed Tomography (EXACT) system that we are supplying to L-3 Communications (NYSE: LLL) as part of the first, second-generation certified Explosive Detection System installed at many airport terminals in the U.S. and abroad. To date we have supplied approximately 450 such systems, the only certified systems able to generate three-dimensional images of all the contents of a bag. We have also developed and are supplying the CT portions of two smaller, lower-cost checked luggage scanners, known generically as ARGUS systems, designed for smaller airports, and are developing a new portal scanner to examine carry-on luggage at airports or carry-in luggage for buildings and mail services."

Roy Sanders and Al Hastbacka, are chairman and president of SDI, respectively. Mr. Sanders, internationally known for his many inventions, has over 50 years experience in radar countermeasures, including 25 years as founder and CEO of Sanders Associates (now BAE Systems). Mr. Hastbacka also has over thirty years experience in signal intelligence and communications countermeasures at Sanders Associates and E-Systems.

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.