U.S. Government Upholds $24 Million Award to Rapiscan Systems for Eagle Mobile High Energy Cargo

US GAO Upholds Finding that Eagle Systems Had Highest Ranking for Technical Performance and Best Value of Competitors

 

Torrance, CA. - February 28, 2011 - Rapiscan Systems, Inc., a leading global supplier of security inspection solutions, today announced that the U.S. General Accounting Office (GAO) has upheld the U.S. Customs and Border Protection's (CBP) total award for multiple Eagle Mobile High-Energy X-Ray systems to Rapiscan Systems. The order was announced in October 2010 but not included in the Company?s reported backlog, pending the resolution of a protest against the award that was filed by the losing bidders with the U.S. government. The Company recently received official notice which clears the way for it to begin fulfilling its contract with its U.S. government customer.

 

In its public decision, the GAO upheld the government's decision that the Rapiscan Eagle Mobile provided the best value to the government. The decision highlighted that the US CBP award had been made following a thorough independent analysis of Rapiscan products as well as leading competitor products. Following this analysis, Rapiscan Eagle Mobile received the highest ranking for technical performance over all other competitors. Specifically noted in the GAO ruling were Rapiscan's technology advantages in providing material separation of inspected items and full passive inspection of radiological and nuclear materials.

 

OSI Systems CEO, Deepak Chopra, stated, "The GAO decision is yet another demonstration of the competitive advantages of Rapiscan's High-Energy x-ray based systems, Our Eagle M-60DE cargo scanner utilizes a dual-energy method to detect contraband deep inside a container, locate radioactive materials through passive detection, and also provide discrimination among organic, metallic, and intermediate materials. Chopra further noted "The government's decision to uphold the total order award to Rapiscan also reinforces the leading position of our detection solutions in cargo when compared to less robust technologies in the marketplace."

 

Ajay Mehra, President of Rapiscan Systems stated: "Rapiscan's Eagle Mobile cargo and vehicle inspection systems provide comprehensive detection of threats such as contraband, narcotics and explosives in even densely packed containers, all via a mobile and reliable platform." Mr. Mehra continued: "Now that the U.S. government has confirmed our contract award following a competitive procurement process, we look forward to meeting their inspection requirements."

 

The Rapiscan Eagle is a road-mobile cargo and vehicle inspection system that can be deployed for inspection at a port, checkpoint or border crossing in less than 20 minutes. It features advanced transmission x-ray technology that can identify the presence of hidden contraband, such as weapons, explosives and narcotics. The system can also be configured to detect radioactive material and can operate in either drive-by or drive through portal mode, which allows operators to adapt the Eagle to their inspection requirements. In addition, the Eagle inspection system can be equipped with Rapiscan's proprietary CabScan technology, which allows an occupied driver cab to be safely scanned with a low energy X-ray beam, while the container is scanned with high energy X-ray.

 

About Rapiscan Systems

 

Rapiscan Systems, a division of OSI Systems, Inc. is a leading 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. For more information on Rapiscan Systems, please visit www.rapiscansystems.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 the company's expectations, goals or intentions about the future, including,, expectations for the successful completion of the above-described project, and the Company's future sales in emerging markets. The actual results may differ materially from those described in or implied by any forward-looking statement. In particular, the timing, and delivery of the inspection systems may not ultimately remain in line with the company's current expectations. Other important factors are set forth in the Securities and Exchange Commission filings OSI Systems, Inc. All forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.

 

For Further Information:

Andrew Goldsmith

Vice President, Marketing

Rapiscan Systems

Tel: (703) 812-0322

E: agoldsmith@rapiscansystems.com