Rapiscan Systems Receives Contracts Worth Up to $12M from U.S. Domestic Nuclear Detection Office

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Awards Mark Company’s Ability to Enable Next Generation WMD Detection.

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Rapiscan Systems, a leader in advanced security screening solutions, today announced that it has been awarded multiple Exploratory Research Program (ERP) contracts by the U.S. Department of Homeland Security (DHS) Domestic Nuclear Detection Office (DNDO). By conducting transformational research and development initiatives, DNDO’s objective is to enlist thought leaders to advance the country’s nuclear materials detection capabilities. With its leading scientists and engineers, Rapiscan has secured contracts that are incrementally funded for a total obligated value of $2 million with additional options that could be exercised for a total value of up to $12 million.

All of the contracts focus specifically on detecting shielded nuclear material. Specifically, the company has been charged with developing a Liquefied Noble gas detector (in collaboration with Yale University), a threshold activation detector, a human portable system and an aircraft inspection solution.

Ajay Mehra, President of Rapiscan Systems, stated, “These contracts require the unique combination of our team’s experience in high-energy x-ray imaging, and nuclear, mechanical and electrical engineering. When successfully completed, these threat detection and verification technologies will provide additional inspection capabilities in protecting our nation from weapons of mass destruction being smuggled into the country. The innovative research at Rapiscan Laboratories, our R&D arm, continues to be at the forefront of combating some of this country’s most serious security threats.”

About Rapiscan Systems
Rapiscan Systems, a division of OSI Systems, Inc. is a leading global supplier of 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 70,000 security and inspection systems. The Rapiscan Systems product line is manufactured at four locations and supported by a global support service network. The company was recognized for its market leadership with one of the United Kingdom's most prestigious distinctions The Queen's Awards for Enterprise and named by Frost & Sullivan as the 2008 North American Homeland Security Inspection and Screening Company of the Year. For more information on Rapiscan Systems, please visit http://www.rapiscansystems.com.

About Rapiscan Laboratories
Rapiscan Laboratories, based in Sunnyvale, California, is the research and development arm of Rapiscan Systems and focuses on leading-edge government research and development programs in the area of non-intrusive inspection (NII) of people, baggage and cargo for contraband such as explosives, drugs, chemicals and nuclear material. Employing such technologies as x-ray radiography, x-ray computed tomography, neutron- and photon-based threat material detection and identification, many of the developments at Rapiscan Laboratories are incorporated into Rapiscan Systems security products.

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 the company's expectations, goals or intentions about the future, including the Company's contracts to provide solutions to the Security industry. The actual results may differ materially from those described in or implied by any forward-looking statement.


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