American Science and Engineering, Inc. Reports Second Quarter Fiscal Year 2010 Results and Declares Quarterly Dividend

American Science and Engineering, Inc. (NASDAQ: ASEI) (AS&E®), a leading worldwide supplier of innovative X-ray inspection solutions, today reported its financial results for the second quarter of fiscal year 2010 ended September 30, 2009. The Company reported revenues of $61,248,000 as compared with revenues of $56,293,000 for the second quarter of fiscal year 2009, net income of $10,695,000 as compared with net income of $7,361,000 for the second quarter of fiscal year 2009, and earnings per share of $1.18 as compared with earnings per share of $0.83 for the second quarter of fiscal year 2009. These results represent a 9% increase in revenue, a 45% increase in net income, and a $0.35 increase in earnings per share when compared to the second quarter of the prior fiscal year. Bookings in the quarter were $90,312,000 resulting in a backlog of $187,427,000 as of September 30, 2009.

For the first six months of fiscal year 2010 ended September 30, 2009, the Company reported revenues of $115,940,000 which represents an increase of 21% as compared with revenues of $95,787,000 for the same period in the prior fiscal year, net income of $18,031,000 which represents a 79% increase as compared with net income of $10,050,000 for the same period in the prior fiscal year, and earnings per share of $2.00 which represents a $0.87 increase as compared with earnings per share of $1.13 for the prior fiscal year.

“We are pleased with our performance in the quarter and our continued progress in year-over-year growth in revenue, gross margin, and earnings per share,” said Anthony Fabiano, AS&E’s President and CEO. “Our notable improvements in profitability are attributable to favorable product mix, and continued success in reducing product and overhead costs.

Fabiano continued, “With our aggressive investments in R&D, we introduced two new cargo product offerings in the quarter — the Sentry™ Portal high-energy, drive through system and the MobileSearch™ HE high-energy inspection system. These systems add to our comprehensive cargo offerings for the military, ports, borders, and high-threat security checkpoints and strengthen our revenue potential with products that utilize high-energy transmission technology and our patented Z Backscatter™ capability.

“With a very strong quarter of cargo and service bookings, the Company added $29 million to its backlog from the previous quarter. Backlog remains over $150 million for the sixth consecutive quarter — highlighting the continued strength of quarterly bookings with the expansion of sales channel into global markets and our increased product offerings. Our continued success over the past year is indicative of our ability to sustain financial strength even in these challenging economic times.”

In accordance with the previously announced dividend program, the Company is declaring a quarterly cash dividend of $0.20 per share, payable on December 3, 2009 to the holders of record at the close of business on November 23, 2009.

As previously announced, Anthony Fabiano, President and CEO, and Ken Galaznik, Senior Vice President, CFO and Treasurer, will host the conference call on Thursday, November 5, 2009 at 4:30 pm ET to discuss the results and respond to questions. To participate in the conference call, please dial 1-866-783-2139 at least 10 minutes prior to its starting time. For international participants, dial 1-857-350-1598. Please tell the Operator the confirmation code: 28764704. You will be placed on hold until the conference call is ready to begin.

An audio replay of the teleconference will be available, in its entirety, starting Thursday, November 5, 2009 at 7:30 p.m. ET for a 48-hour period by dialing 1-888-286-8010. Internationally, please dial 1-617-801-6888. The conference identification number is 88569058. The replay will also be available at www.as-e.com in the Investor Information section following the conference.

About AS&E®

American Science and Engineering, Inc. (AS&E) is the leading worldwide supplier of innovative X-ray inspection systems. With 50 years of experience in developing advanced X-ray security systems, the Company’s product line utilizes a combination of technologies, including patented Z Backscatter technology, Radioactive Threat Detection (RTD), high energy transmission and dual energy transmission X-ray. These technologies offer superior X-ray threat detection for plastic explosives, plastic weapons, liquid explosives, dirty bombs and nuclear devices. AS&E’s complete range of products include cargo inspection systems for port and border security, baggage screening systems for facility and aviation security, and personnel and passenger screening systems. AS&E systems protect high-threat facilities and help combat terrorism and trade fraud, drug smuggling, weapon smuggling, and illegal immigration and people smuggling. AS&E customers include leading government agencies, border authorities, military bases, airports and corporations worldwide, including the U.S. Department of Homeland Security (DHS), U.S. Department of Defense (DoD), U.S. Customs and Border Protection (CBP), North Atlantic Treaty Organization (NATO), HM Revenue & Customs (U.K.), Hong Kong Customs, and Abu Dhabi Customs. For more information on AS&E products and technologies, please visit www.as-e.com.

Safe Harbor Statement

The foregoing press release contains statements concerning AS&E’s financial performance, markets and business operations that may be considered “forward-looking” under applicable securities laws. AS&E wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements. Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: significant reductions or delays in procurements of the Company’s systems by the United States and other governments; disruption in the supply of any source component incorporated into AS&E’s products; litigation seeking to restrict the use of intellectual property used by the Company; potential product liability claims against the Company; global political trends and events which affect public perception of the threat presented by drugs, explosives and other contraband; global economic developments and the ability of governments and private organizations to fund purchases of the Company’s products to address such threats; and the potential insufficiency of Company resources, including human resources, capital, plant and equipment and management systems, to accommodate any future growth, and future delays in federal funding. These and certain other factors which might cause actual results to differ materially from those projected are detailed from time to time in AS&E’s periodic reports and registration statements filed with the Securities and Exchange Commission, which important factors are incorporated herein by reference. AS&E undertakes no obligation to update forward looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition or business over time.