Analogic Receives $7.6 Million Order from the TSA for Its COBRA Checkpoint Auto-EDS System.

PEABODY, Mass. -- Analogic Corporation (NASDAQ: ALOG) today announced that it has received an order from the U.S. Transportation Security Administration (TSA) for its innovative COBRA[R] Automatic Explosives and Weapons Detection System for aircraft passenger checkpoints. The TSA will initially purchase 12 COBRA units with installation and support services from Analogic at a value of $7.6 million. This order is part of a broader Indefinite Delivery Indefinite Quantity (IDIQ) contract for up to 40 systems over two years and field support services over five years at a combined potential value of $37.5 million, with a potential additional $40 million for further engineering services over five years for a combined maximum potential contract value of $77.5 million.

Originally conceived and designed independently by the Company, the COBRA was enhanced under a TSA contract as part of its program to develop Automatic Explosives Detection (Auto-EDS) Systems for the checkpoint. Scanning up to 550 bags or bins per hour, the COBRA provides high-resolution, 3-D images of the contents of a bag or bin, which then can be rotated on-screen with the touch of a finger for improved on-screen threat-image evaluation by the operator. The computed-tomography-based system can automatically detect explosives and weapons, and can highlight them for closer inspection along with other potential threats found by inspecting the 3-D images. The COBRA includes an automatic Bin Return System (BRS) that saves additional time and labor by returning empty bins beneath the system on a motorized conveyor to the front of the passenger security checkpoint.

Jim Green, President and CEO of Analogic, noted, "We are very pleased to announce our first production order for the COBRA. At the end of July, our first prototype COBRA unit was installed at Cleveland Hopkins International Airport in Ohio, the first Checkpoint Auto-EDS to be piloted at a U.S. airport. The COBRA has been very well received by passengers and by checkpoint inspectors. The installation of these additional systems at airport checkpoints across the U.S. will provide the opportunity to demonstrate the capabilities and benefits of what we believe to be the most sophisticated and efficient tool available today to detect explosives and weapons at the checkpoint.

The COBRA is designed to support aviation, surface transportation, and other checkpoint portals more efficiently than conventional equipment, reducing operating and life-cycle costs while increasing throughput and threat-detection capabilities of the entire checkpoint.

Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems. The Company is recognized worldwide for advancing the state of the art in Automatic Explosives Detection, Computed Tomography (CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging (MRI), Patient Monitoring, and Advanced Signal Processing.

Forward-Looking Statements

Any statements in this press release about future expectations, plans, and prospects for the Company, including statements about orders for the Company's products, statements about shipments and installation of the Company's products, and other statements containing the words "believes," "anticipates," "plans," "expects," and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including risks relating to technology development and commercialization, risks in product development, limited demand for the Company's products, risks associated with competition, uncertainties associated with regulatory agency approvals, competitive pricing pressures, downturns in the economy, the risk of potential intellectual property litigation, and other factors discussed in our most recent quarterly report filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's views as of October 9, 2007 The Company anticipates that subsequent events and developments will cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to October 9, 2007.