DHS Awards Rapiscan Systems $2.7 Million Contract for the Development of Radiological Threat Identification System.

HAWTHORNE, Calif. -- Rapiscan Systems, a division of OSI Systems, Inc. (Nasdaq:OSIS), today announced that the company was awarded a two-phase $2.7 million contract by the Homeland Security Advanced Research Projects Agency (HSAPRA) for the development of the Rapiscan Radiological Threat Identification System (RTIS(TM)).

RTIS(TM) is designed to automatically detect and identify radioactive materials within cargo and vehicles utilizing gamma-ray spectroscopic analysis of radioactive species. This process distinguishes between radiological threats and benign Naturally Occurring Radioactive Materials (NORM). As a result, the system facilitates the flow of commerce because its false alarm rate is much lower than radiation detection systems that cannot make the distinction.

The Department of Homeland Security (DHS) plans to deploy, on a large scale, systems that detect the illicit movement of nuclear and other radioactive materials at our nation's ports and border crossings. As part of this multi-phase, competitive-bid initiative, performance tests are scheduled to begin in the near future. The field is then expected to narrow down to the top-three systems followed by a large-scale acquisition planned for by the DHS.

Ajay Mehra, President of Rapiscan Systems, stated, "This announcement signifies an advance in the next generation screening technologies for radiological and nuclear threats. The new technology will be designed to work either as a stand-alone portal monitor, or it can be deployed in tandem with our image-based screening technologies such as the advanced Eagle(R) X-ray technology, which is operating in the Port of Baltimore."

About Rapiscan Systems

Rapiscan Systems, a wholly owned subsidiary of OSI Systems, Inc., is a leading supplier of high-quality security inspection solutions utilizing X-ray and gamma-ray imaging and advanced-threat identification techniques, such as neutron and diffraction analysis. The company's products are sold into four market segments: Baggage and Parcel Inspection, Cargo and Vehicle Inspection, Hold Baggage Screening and People Screening. The company has an installed base globally of more than 50,000 security and inspection systems. The Rapiscan Systems product line, marketed under the Rapiscan and Metor brand names, is manufactured at four locations and supported by a global support service network. For more information on Rapiscan Systems, please visit www.rapiscansystems.com.

About OSI Systems, Inc.

OSI Systems, Inc. is a Hawthorne, Calif., based diversified global developer, manufacturer and seller of security and inspection systems, medical monitoring products and optoelectronic-based components, as well as a provider of engineering and manufacturing services. The company has more than 30 years of experience in electronics engineering and manufacturing and maintains offices and production facilities located in more than a dozen countries. OSI Systems implements a strategy of expansion by leveraging its electronics and contract manufacturing capabilities into selective end product markets through organic growth and acquisitions. For more information on OSI Systems, Inc. or any of its subsidiary companies, visit www.osi-systems.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding our expectations, goals or intentions about the future, including, but not limited to, statements regarding the growth of our install base of large cargo inspection systems, or of the commercial acceptance of systems under development. The actual results may differ materially from those described in or implied by any forward-looking statement. In particular, there can be no assurance that such growth will occur either at their expected rates or at all. Other important factors are set forth in our Securities and Exchange Commission filings. All forward-looking statements speak only as of the date made, and we undertake no obligation to update these forward-looking statements.