American Science and Engineering, Inc. (NASDAQ: ASEI) (AS&E®) issues a clarification to media regarding the Transportation Security Administration (TSA) Backscatter Pilot information. Recent media reports contain images that misrepresent the recent news announcement, "American Science and Engineering, Inc. To Provide TSA with SmartCheckPersonnel Screening System at U.S. International Airport",released on December 1, 2006. The press release can be found at: http://investor.as-e.com/
The unfiltered Z® Backscatter images that have been associated with the SmartCheck personnel screening system and the TSA Backscatter Pilot are an incorrect depiction of the SmartCheck system's images with privacy filtered software. The images widely distributed were taken in the 1990s and in 2003 with AS&E's previous generation system, and these images do not have the privacy software that will be used by TSA during the Pilot Program.
The actual images can be found on www.as-e.com and www.tsa.gov.
Following are the correct facts regarding the SmartCheck system and the TSA Backscatter Pilot Program:
- SmartCheck Backscatter Pilot - AS&E has been selected by the Transportation Security Administration to pilot test its SmartCheckPersonnel Screening System, equipped with privacy software, at Sky Harbor International Airport in Phoenix, Arizona. TSA has announced that the SmartCheck Pilot will commence in the next couple weeks.
- Assured Privacy - AS&E's SmartCheck system uses a software algorithm to protect the privacy of screened passengers while effectively displaying threats. The privacy-filtered image looks like an outline of the person and outlines any potential threats on the person. The images are similar to when a child traces an outline of his/her hand.
- Images will not be stored, printed or transmitted - For added privacy to the passenger, the SmartCheck system deployed by TSA is not capable of storing, exporting, printing, or transmitting images; all images are automatically deleted from the system immediately after they are reviewed by the remote operator.
- Remote Operator Console - The image analysis console will be located remotely, out of the sight of those being scanned and other passengers at the checkpoint. This will prevent the image analyst from seeing or identifying the person being scanned.
- Voluntary Screening- Passengers undergoing secondary screening will have the option of a SmartCheck scan as an alternative to a physical pat-down by a TSA Security Officer at the security checkpoint. TSA will not require people to be scanned by SmartCheck.
- Safe for All - SmartCheck's Z Backscatter X-ray technology is safe for both operators and scanned individuals. The radiation dose from a single scan is less than 10 microRem (0.1 microSieverts) per scan. To put this into perspective, 10 microRem is equivalent to the radiation a person receives from flying in an airplane for about two minutes at 30,000 feet (due to the increased exposure from cosmic rays). SmartCheck meets the manufacturer's requirements of the American National Standards Institute (ANSI) standard N43.17, which is the standard that the Center for Devices and Radiological Health (CDRH) references for systems such as SmartCheck.
- About SmartCheck: SmartCheck is a safe, non-intrusive personnel screening system that allows operators to detect threats hidden on a person. The system displays both organic and inorganic materials, revealing objects such as guns and knives, explosives, composite weapons, and other hidden threats and contraband. Its ZBackscatter technology gives the operator easy-to-interpret information about where threats or contraband are hidden, thus eliminating the need for intrusive and time-consuming pat-down searches.
About AS&E®
American Science and Engineering, Inc. (AS&E) is the leading worldwide supplier of innovative X-ray inspection and screening systems. With more than 45 years of experience in developing advanced X-ray security systems, the Company's product line utilizes a variety of technologies, including patented Z® Backscatter, Shaped Energy and Radioactive Threat Detection (RTD). These technologies offer superior detection of threats including explosives, plastic weapons, illegal drugs, other contraband, dirty bombs and nuclear devices. AS&E offers a complete range of X-ray inspection products including Z Backscatter screening systems, CargoSearch, and ParcelSearch inspection systems, used for critical detection and security applications to combat terrorism, drug and weapon smuggling, trade fraud, and illegal immigration. AS&E customers include leading governmental agencies, border authorities, military bases, airports and corporations worldwide, including the U.S. Department of Homeland Security, U.S. Department of Defense, U.S. Customs and Border Protection, Royal Thai Police, HM Customs & Excise (U.K.) and Hong Kong 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.