HAWTHORNE, Calif. - Rapiscan Systems, a leading global supplier and manufacturer of security inspection systems for homeland security applications, announced today that Rapiscan Laboratories ("Rap Labs"), its R&D development division, was awarded an approximate $1.5 million contract option for the next-phase of a data-fusion program with the Department of Homeland Security (DHS) Domestic Nuclear Detection Office. The aim of the project is to improve the performance of existing nuclear threat detection techniques through the development of integrated systems utilizing X-ray and neutron based inspection methods. Integrated algorithms developed under the study are potentially expected to be deployable in a range of nuclear threat detection systems for cargo and container screening. Ajay Mehra, President of Rapiscan Systems, stated, "This effort underscores the commitment and quality of our engineers in the development of advanced detection algorithms that utilize both X-ray and neutron technologies. Our primary charter at Rap Labs is to leverage our knowledge of Physics and Engineering to rapidly deploy systems that enable for the non-intrusive inspection of cargo for the detection of contraband items." About Rapiscan Systems Rapiscan Systems, a division of OSI Systems, Inc. is a leading supplier of high quality security inspection solutions utilizing X-ray and gamma-ray imaging, and advanced threatentification 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 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 Rapiscan Laboratories Rapiscan Laboratories, based in Sunnyvale, California, is the research and development arm of Rapiscan Systems and focuses on leading edge government R&D in the area of non-intrusive inspection (NII) of cargo for contraband like explosives, drugs, chemicals and nuclear material. Many of the recent developments at Rapiscan Laboratories are being incorporated into Rapiscan Systems commercial inspections systems in the areas of low energy X-ray radiography, advanced high energy X-ray radiography, neutron and photon based threat material detection andentification. For further information, contact: Rapiscan Systems, Inc. Shiva Kumar, Vice President and General Manager, Rapiscan Labs Phone: (408) 961-9753 Email: skumar@rapiscansystems.com Amy Talley Jefferson Communications Phone: (703) 323.8939 Email: atalley@jeffersoncomm.com Website: www.jeffersoncomm.com

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