OSI Systems Awarded Approximate $3 Million Contract from U.S. Government Agency for Newly Launched Rapiscan Secure 1000 Portable Body Scanner

HAWTHORNE, Calif.--(BUSINESS WIRE)--OSI Systems, Inc. (NASDAQ: OSIS), a vertically-integrated provider of specialized electronic products for critical applications in the Security and Healthcare industries, today announced that its Security division, Rapiscan Systems, was awarded an approximate $3 million order from an undisclosed United States Government Agency for its newly released Rapiscan Secure 1000MP (modular and portable).

The Rapiscan Secure 1000MP was developed specifically for applications that require rapid deployment, mobility and durability, as well as superior threat detection. The system provides the same detection capabilities as the Rapiscan Secure 1000 Single Pose solution that is being deployed by airports worldwide, but in a portable configuration. The system produces high-resolution images that enable detection of concealed threats and contraband items. The Rapiscan Secure 1000MP is ideal for high security environments because both organic (i.e. solid and liquid explosives, narcotics, ceramic weapons, etc.) and inorganic (i.e. metal) materials are easily identified in the resulting image.

Rapiscan Systems President, Ajay Mehra stated, “We are excited to announce that the U.S. Government has chosen the Rapiscan Secure 1000MP for its security needs. The Rapiscan Secure 1000MP lightweight and modular design makes it a truly “man-portable” solution for military, police, corrections, event security and protection of critical infrastructure. The Rapiscan Secure 1000MP is an important addition to the Rapiscan Secure product family and will significantly expand our opportunities to provide customers with its superior threat detection technology.”

Combating the threat of international terrorism
June 11, 2010

By Peter Kant, Vice President of Global Government Affairs at Rapiscan Systems, looks to the future of checkpoint security…

The recent car bombing attempt in New York’s Times Square was just the latest of more than 30 terrorist plots against the US since 9/11.  On the first of May 2010, Times Square was packed with tourists and theatre goers when the alarm was raised.  Following the discovery of the car bomb, the area was shut down for 10 hours as detectives took to the stage at the end of Broadway musicals to ask for witnesses to any suspicious activity.  Thousands of tourists were prevented from returning to their hotels in the densely crowded district.

Airport detainment - On the following Monday, a suspect was detained at John F Kennedy Airport in New York as he attempted to leave for Dubai.  Meanwhile, Emirates Airlines said that the US authorities had removed two other people from a flight to Dubai, whilst immediate international security measures were taken to screen aircraft, passengers, and baggage even more thoroughly.

This latest attack highlighted the ongoing need for security measures that combine intelligence and police work – and that take full advantage of the new security technologies to detect potential threats.

Today’s security measures are mainly experienced at check-points, typically to inspect bags and people.

But in the evolving world of international terrorism, future security measures must utilise technologies that can routinely screen vehicles and large numbers of people.

Combined screening
For example, it is now possible to combine the screening of cars and vehicles for concealed threats such as explosives and weapons as they enter a public area or facility – without requiring passengers to leave their vehicles.

Increasingly used, new “standoff” detection technologies make it possible to detect threats concealed in crowds of people as they move through an area.

One of the most important aspects of the future security checkpoint is that it will enhance operational efficiency (eg. faster customer screening and lower staffing requirements) even as it improves security.

It will also help the general public feel more secure and calm as they pass through strict security checkpoints rather than creating stress and confusion. Leading-edge checkpoint security designs use advanced gating and signage systems that guide people through a security checkpoint.

They feature ergonomically designed people screening and re-composure areas, as well as systems that facilitate the handling and inspection of baggage.

Live trial
In one live airport trial in Manchester, England, the use of these types of systems, together with advanced security screening technologies, dramatically increased customer satisfaction, whilst reducing checkpoint manpower costs.

Due to the large numbers of people passing through airports and the ongoing desire to allow space for commercial features such as shops and restaurants, the security checkpoints of the future are also designed to be compact.

In addition, the design will offer advanced personnel management and staff optimisation tools – technology that allows checkpoint operators to utilise the optimal number of staff, which in turn reduces the amount of physical space needed to accommodate the checkpoint.

The integration of a variety of people, baggage, and cargo screening systems with the latest software solutions will provide a comprehensive and reliable security solution.

Threat recognition
In the near future, security scanners will use automatic threat recognition, rather than images analysed by security personnel, to identify potentially dangerous items.

These new systems will automatically indicate the presence of hazardous materials and contraband, including liquid explosives and other dangerous material.

By adding newly developed automatic bag and bin handling systems, the general public will see fully automated security aviation checkpoints at their airports.

Traditional airport, port and border security checkpoints have been seen to provide the vital protection against would be attackers, preventing the transportation of weapons and bombs into airports and across borders.

Innovative technology
As the UK considers new methods of people screening to further improve airport security, innovative technology such as advanced X-ray machines that provide a 360-degree view of passengers are rapidly being introduced.

Installing advanced inspection and screening systems at critical security checkpoints provides a first line of defence in protecting the country as a whole.

Threat awareness coupled with threat detection can help prevent people like the 2001 shoe bomber on American Airlines Flight 63 and most recently in December 2009, the ‘Pants Bomber’, from ever boarding a plane.

Government, police and security officials must be equipped with the best detection equipment available in order to combat whatever current and future threats arise.

The on-going threat of international terrorism is one that we are likely to have to face for many years.

Every new terrorist threat brings new challenges. The security measures of the future not only have to anticipate and contend with these emerging threats, but need to combine the best screening technologies with advanced integrated solutions to strengthen the first line of defence.

AUSA Member of the Month Profile: Rapiscan Systems

June 2010
http://www.ausa.org/membership/sustaining/members/Pages/RapiscanSystems.aspx

One of the most difficult challenges facing military forces is the detection of Improvised Explosive Devices (IEDs).

These lethal and indiscriminate weapons pose a serious and continual threat to defense forces and the safety and stability of local populations. Detecting IEDs and preventing their deadly results is critical to the force protection and the local security missions of the armed forces. 

Since the beginning of the wars in Iraq and Afghanistan, Rapiscan has worked tirelessly to invent and deploy new, advanced technologies specifically designed to detect IEDs and to operate reliably in the most extreme environments. Defense forces that rely on Rapiscan equipment have been highly successful in attacking the IED threat, but we know that the enemy continues to challenge us with new and more lethal threats.

In order to continually help defend and protect our forces, we have proactively sought to:

    * Develop (with DoD agencies like JIEDDO and TSWG) the most innovative inspection approaches at our Rapiscan Laboratories located in the heart of Silicon Valley;

    * Continue to put Rapiscan technology in the field to get the “Voice of the Soldier” so we can design better technologies that continue to meet field requirements;

    * Establish a strong deployed field service team to ensure Rapiscan technologies are reliable and ready for use anytime, anywhere; and

    * Develop and deploy new “ruggedized” and re-locatable systems allowing for IED detectors and scanners to move with troops and survive harsh environments.

With thousands of systems deployed around the world, we remain vigilant in quickly innovating and deploying the best technology to meet ever-changing defense requirements. Whether the need is detection of threats at a checkpoint, an entry-control point or a people screening station, our IED solutions are ruggedized, mobile and proven reliable. And thanks to innovations such as our MobileCheck containerized inspection system, individual Rapiscan technologies can be rapidly configured to form a layered, resilient and interoperable force protection capability.

 Flagship products include:

Rapiscan Eagle T10 – delivering Rapiscan’s proven Eagle high quality X-ray imaging on a towable trailer for mobile, rapidly deployed cargo and vehicle inspection. This rugged, all-weather unit is easily towed to an inspection site and ready to begin scanning in 10 minutes.

Rapiscan Eagle M45 – uses unsurpassed imaging quality to inspect for IED’s and can easily be driven to a site and readied to scan an unoccupied parked truck or line of trucks.

Rapiscan Eagle M10 – inspects cargo in vehicles and allows the operator to detect items that include explosives, narcotics, currency, agricultural products, weapons, and other contraband. The system is road-worthy, all weather and can be operated in most countries without any specialized drivers licensing.

Rapiscan Eagle C02 – performs safe and effective inspection (less than five seconds) of occupied vehicles at sites such as border crossings and facility entrances.

Rapiscan Secure 1000 – built upon the most widely deployed people screening technology, it is easy to use with a durable, modular design for fast set-up and tear-down in one hour or less. The system is ideal for high security environments because both organic (i.e. solid and liquid explosives, narcotics, ceramic weapons) and inorganic (i.e. metal) materials are apparent in the image.

Rapiscan MobileCheck – a complete checkpoint that integrates people screening and hand luggage screening in a single easily relocated, rugged ISO container.

Metor 300 Portable – is a reliable, durable and versatile security solution for both temporary and permanent security checkpoints. With enhanced discrimination features, it is well suited for the security screening of large groups of people and ideal for outdoor use.

All of these products are available and supported through Rapiscan Systems extensive global sales and distributor network.

Rapiscan Systems Receives Approximately $3 Million in Initial Contract Awards

Wed May 26, 3:00 am ET

 Two Major International Airlines Select Company to Provide Air Cargo Inspection Equipment.

 (Vocus) May 26, 2010 -- Rapiscan Systems, a leading supplier of security inspection systems, today announced that it has received initial contract awards to supply air cargo inspection systems to two major international airlines. The contracts have a combined value of approximately $3 million.

 “We are pleased that both these airlines have selected Rapiscan Systems as their security screening solution provider. With over 15 years of experience serving the aviation market, we believe we offer air cargo companies the broadest range of TSA approved screening systems and the deepest expertise in the industry.”

 Under the terms of the agreements, Rapiscan will be the primary supplier of air cargo screening systems to both major international airlines. Delivery of the inspection systems will be expedited in order to help the companies meet the Transportation Security Administration’s (TSA) Certified Cargo Screening Program (CCSP), which requires 100 percent inspection of all cargo carried in passenger aircraft.

 OSI Systems (Rapiscan’s parent company) Chairman and CEO, Deepak Chopra, stated, “We are pleased that both these airlines have selected Rapiscan Systems as their security screening solution provider. With over 15 years of experience serving the aviation market, we believe we offer air cargo companies the broadest range of TSA approved screening systems and the deepest expertise in the industry.”

Rapiscan Systems is a leader in the air cargo security screening market, having built successful relationships with both commercial firms and government agencies around the world. The Company has a number of X-ray based systems that have already been named to the TSA’s Air Cargo Qualified Technology List (ACQTL) for Air Cargo Inspection, including the Rapiscan 620DV, Rapiscan 627DV, Rapiscan 632DV, Rapiscan 638DV, Rapiscan 620XR, Rapiscan 627XR and Rapiscan 628XR.

 Rapiscan is providing many of its TSA approved air cargo inspection technologies under these contracts. The systems, including the Rapiscan 632DV, 620DV-AT and Rapiscan 627XR, are specifically tailored for the high volume inspection requirements of the air cargo industry. The solutions provide best in class imaging and additional software features that enable fast and secure inspection of various cargo commodities and sizes ranging from “per piece” inspection to scanning skids and netted cargo.

May 13, 2010

 Rapiscan Systems Receives Approximately $6 Million in New Orders for Advanced Personnel Screening Solution; New Contracts Raise Total Value of Fiscal 2010 Orders for Secure 1000 People Screening Solution to Approximately $50 Million

Rapiscan Systems, a leading supplier of security inspection systems, today announced that is was awarded multiple customer contracts with a combined value of approximately $6 million for its Rapiscan Secure 1000 personnel screening system. The value of these orders raises the total value of orders received for the Rapiscan Secure 1000 system in the Company’s fiscal year ending June 30, 2010, to approximately $50 million.

Ajay Mehra, President of Rapiscan Systems, stated, “Following on from our recently announced order from the US Transportation Security Administration, these most recent contract awards from multiple customers demonstrate the growing demand for the Secure 1000 product line globally. We are seeing significant customer interest in the Rapiscan Secure 1000, not only in aviation but for other security applications due to the systems proprietary technology which offers customers the best combination of security and operational efficiency, as it can detect small, non-metallic concealed threats very quickly and with excellent image resolution. This means that there is better threat detection, fewer false alarms and a reduced need for physical patdown searches.”

Used by aviation authorities, military organizations, homeland security, and police and correctional facilities, the Rapiscan Secure 1000 family of body scanners is one of the world’s most widely deployed advanced people screening solutions. The Rapiscan Secure 1000 family of technologies has been approved by regulators worldwide and is being deployed at airports globally. Its proprietary backscatter technology and image processing software enables the system to produce high-resolution images that allow an operator to easily identify concealed threat and contraband items. It is ideal for high security environments because unlike traditional metal detectors, it can detect organic and non-metallic items (e.g. plastic explosives, liquids, narcotics, ceramic weapons), as well as metallic threat items. Using the Rapiscan Secure 1000’s imaging capability, security screeners can detect concealed objects without a physical patdown search. By reducing false alarms and by making it easier to pinpoint the location of concealed items, the Rapiscan Secure 1000 also significantly improves checkpoint throughput and staffing efficiency.
 

Press Release

OSI Systems Receives $16 Million Delivery Order from TSA for Advanced Imaging Technology; Systems Purchased with American Recovery and Reinvestment Act (ARRA) Funds; Second Order Placed under $173 Million IDIQ Contract; Total Orders Received To Date Are Approximately $40M

April 29, 2010

OSI Systems, Inc. (NASDAQ:OSIS), a vertically-integrated provider of specialized electronic products for critical applications in the Security and Healthcare industries, today announced that it has received an approximate $16 million order from the U.S. Transportation Security Administration (TSA) for multiple units of its Secure 1000 Single Pose Advanced Imaging Technology (AIT) systems—funded under the American Recovery and Reinvestment Act. This is the second order to be placed under Rapiscan’s Indefinite Delivery, Indefinite Quantity (IDIQ) contract received from TSA in September 2009 for up to $173M.

 The Secure 1000 Single Pose is on the Transportation Security Administration’s Qualified Products List and is currently being deployed at airports throughout the U.S. The systems will be manufactured at the company’s Ocean Springs, Mississippi facility.

 For more information on Rapiscan Secure1000 Single pose please log on to  http://www.rapiscansystems.com/rapiscan-secure-1000-single-pose.html

The first contract is for the development of a cargo inspection system that is easily deployable and capable of automatically detecting fissile special nuclear material (SNM) and differentiating it from non-fissionable materials. The second contract is for the development of a hybrid cargo inspection system that combines x-ray imaging and neutron detection to identify nuclear fissionable material. The hybrid system will incorporate the Company’s proprietary Auto-Z algorithm that provides automatic detection of high-atomic-number materials typically associated with nuclear weapons.

Ajay Mehra, President of Rapiscan Systems, stated, “These contracts require the unique combination of the expertise of our staff in high-energy x-ray imaging, neutronics as well as in mechanical, electrical engineering and software engineering. Once successfully completed, these threat detection and verification technologies will provide an additional inspection capability that can play an important role in protecting our nation from weapons of mass destruction being smuggled into the country.”

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 threat identification techniques such as neutron and x-ray 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 a global installed base 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 http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.rapiscansystems.com&esheet=5846109&lan=en_US&anchor=www.rapiscansystems.com&index=1.

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 predictions with regard to the prospective performance of, and market acceptance of, its products. The actual results may differ materially from those described in or implied by any forward-looking statement. 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.

Rapiscan Systems
Andrew Goldsmith
Vice President, Global Marketing

Australian Government Selects Rapiscan Systems Security Solutions for Advanced Screening Technologies Trials

Testing at Melbourne Airport Will Feature Rapiscan 620DV Baggage Screener and Secure 1000 Body Scanner

MELBOURNE, Australia — Rapiscan Systems, Inc., a global leading supplier of security inspection systems, announced today that the Rapiscan 620DV and Rapiscan Secure 1000 Body Scanner have been approved for use in the Advanced Technology Trials at Melbourne Airport by the Australian Government Office of Transport Security (OTS) as part of the Australian government's ongoing effort to strengthen aviation security.

The advanced screening technologies are designed to detect weapons, explosives and other prohibited items concealed by passengers on civil aircraft. The Rapiscan 620DV system is a checkpoint screening solution designed specifically to detect aviation-based threats while improving checkpoint operations. The system represents one of the most advanced checkpoint inspection systems in the world with multiple views and dual energy X-ray sources for material discrimination. With these varying angles, screeners can more readily identify potential threat objects leading to increased throughput, fewer delays and less hassle during the passenger screening process.

The Rapiscan Secure 1000 is a people screening device that produces high resolution images to enable the operator to easily identify concealed threat and contraband items. The Rapiscan Secure 1000 is ideal for high security environments because it is able to identify both organic (e.g. explosives, narcotics, ceramic weapons) and inorganic (e.g. metal) materials upon inspection. Rapiscan Systems has developed advanced techniques to protect the privacy of the person being screened while enabling effective detection of threat items. In a recent trial of the Secure 1000 conducted at Heathrow Airport in London, 19 out of 20 persons preferred a to be scanned by the Rapiscan Secure 1000 compared to an invasive pat-down physical search.

Rapiscan Systems Australia Commercial Director Kate Hamilton, stated, 'We are very proud that we have been selected as one of the first suppliers to participate in these trials. The Office of Transport Security should be applauded for embracing new technologies to increase the security of the general public. The Rapiscan 620DV and Rapiscan Secure 1000 offer an unsurpassed combination of threat detection and lower total cost of ownership, while at the same time meeting the world's most stringent aviation security regulatory standards."

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 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, the company's participation in the trials being conducted at Melbourne International Airport by the Australian Government Office of Transport Security. The actual results may differ materially from those described in or implied by any forward-looking statement. In particular, the timing, and performance of the Rapiscan 620DV and Rapiscan Secure 1000 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.

Rapiscan Systems, Inc.
Australia and New Zealand:
Commercial Director
Kate Hamilton, +61 3 9929 4601
Fax: +61 3 9929 4655
Mobile: +61 400 001 307 hamilton@rapiscansystems.com
or
Global Media:
VP, Global Marketing
Andrew Goldsmith, +1 703 812 0322
agoldsmith@rapiscansystems.com