DHS Awards Rapiscan Systems $2.7 Million Contract for the Development of Radiological Threat Identification System

Rapiscan Systems, a division of OSI Systems, Inc.
(Nasdaq:OSIS), today announced that the company was awarded a
two-phase $2.7 million contract by the Homeland Security Advanced
Research Projects Agency (HSAPRA) for the development of the Rapiscan
Radiological Threat Identification System (RTIS(TM)).
   RTIS(TM) is designed to automatically detect and identify
radioactive materials within cargo and vehicles utilizing gamma-ray
spectroscopic analysis of radioactive species. This process
distinguishes between radiological threats and benign Naturally
Occurring Radioactive Materials (NORM). As a result, the system
facilitates the flow of commerce because its false alarm rate is much
lower than radiation detection systems that cannot make the
distinction.
   The Department of Homeland Security (DHS) plans to deploy, on a
large scale, systems that detect the illicit movement of nuclear and
other radioactive materials at our nation's ports and border
crossings. As part of this multi-phase, competitive-bid initiative,
performance tests are scheduled to begin in the near future. The field
is then expected to narrow down to the top-three systems followed by a
large-scale acquisition planned for by the DHS.
   Ajay Mehra, President of Rapiscan Systems, stated, "This
announcement signifies an advance in the next generation screening
technologies for radiological and nuclear threats. The new technology
will be designed to work either as a stand-alone portal monitor, or it
can be deployed in tandem with our image-based screening technologies
such as the advanced Eagle(R) X-ray technology, which is operating in
the Port of Baltimore."

   About Rapiscan Systems

   Rapiscan Systems, a wholly owned subsidiary 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 50,000 security and inspection systems. The
Rapiscan Systems product line, marketed under the Rapiscan and Metor
brand names, 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 OSI Systems, Inc.

   OSI Systems, Inc. is a Hawthorne, Calif., based diversified
global developer, manufacturer and seller of security and inspection
systems, medical monitoring products and optoelectronic-based
components, as well as a provider of engineering and manufacturing
services. The company has more than 30 years of experience in
electronics engineering and manufacturing and maintains offices and
production facilities located in more than a dozen countries. OSI
Systems implements a strategy of expansion by leveraging its
electronics and contract manufacturing capabilities into selective end
product markets through organic growth and acquisitions. For more
information on OSI Systems, Inc. or any of its subsidiary companies,
visit www.osi-systems.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 our expectations, goals or
intentions about the future, including, but not limited to, statements
regarding the growth of our install base of large cargo inspection
systems, or of the commercial acceptance of systems under development.
The actual results may differ materially from those described in or
implied by any forward-looking statement. In particular, there can be
no assurance that such growth will occur either at their expected
rates or at all. 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.