Rapiscan Systems Receives $13.2 Million in Contract Orders from the Transportation Security Administration

  
    
  
  
    
      OSI Systems, Inc. (NASDAQ:OSIS), a vertically-integrated provider of 
      specialized electronic products for critical applications in the 
      Security and Healthcare industries, announced today that its Security 
      division, Rapiscan Systems, received $13.2 million in contract orders 
      from the Transportation Security Administration (TSA). Included in this 
      total was: funding for Phase Two of the TSA’s 
      Security Technology Integrated Program (“STIP”), 
      orders for Threat Image Projection Ready X-Ray (TRX) systems and 
      peripheral equipment orders.
    
    
      On June 6, 2006, Rapiscan Systems announced that it had been awarded an 
      $800,000 grant from the TSA for Phase One of the STIP for the 
      development, testing and piloting of software to network security 
      equipment at 450 airports throughout the United States. In Phase Two of 
      the program, Rapiscan Systems will implement the software throughout its 
      installed base of checkpoint X-ray systems, a project it expects to 
      complete by the end of the fiscal year.
    
    
      Rapiscan Systems President, Mr. Ajay Mehra, said, "This contract 
      underscores the ongoing relationship between the TSA and Rapiscan to 
      enhance aviation security. We applaud the TSA for fostering 
      public-private partnerships such as this as it allows true collaboration 
      in developing the most sophisticated, comprehensive solutions to today's 
      complex security challenges."
    
    
      STIP is expected to provide more accurate and timely information to key 
      decision makers in the TSA. To do so, security equipment (metal 
      detectors, X-ray machines, explosive detection systems, etc.) can be 
      connected as a network, capable of sending data between disparate sites 
      and machines. The initiative will also allow administrative and 
      technical communications such as streamlined security updates, alerting 
      functions, remote maintenance and monitoring and asset management.
    
    
      About OSI Systems, Inc.
    
    
      OSI Systems, Inc. and its subsidiaries are a vertically integrated 
      designer and manufacturer of specialized electronic systems and 
      components for critical applications. The company sells its products in 
      diversified markets, including homeland security, healthcare, defense 
      and aerospace. 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.
    
    
      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 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.
    
    
      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 about the TSA’s 
      STIP. The actual results may differ materially from those described in 
      or implied by any forward-looking statement. In particular, the timing, 
      and success of Phase Two of the Program 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.
    
  
OSI Systems, Inc. (NASDAQ:OSIS), a vertically-integrated provider
of specialized electronic products for critical applications in the
Security and Healthcare industries, announced today that its Security
division, Rapiscan Systems, received $13.2 million in contract orders
from the Transportation Security Administration (TSA). Included in
this total was: funding for Phase Two of the TSA's Security Technology
Integrated Program ("STIP"), orders for Threat Image Projection Ready
X-Ray (TRX) systems and peripheral equipment orders.

   On June 6, 2006, Rapiscan Systems announced that it had been
awarded an $800,000 grant from the TSA for Phase One of the STIP for
the development, testing and piloting of software to network security
equipment at 450 airports throughout the United States. In Phase Two
of the program, Rapiscan Systems will implement the software
throughout its installed base of checkpoint X-ray systems, a project
it expects to complete by the end of the fiscal year.

   Rapiscan Systems President, Mr. Ajay Mehra, said, "This contract
underscores the ongoing relationship between the TSA and Rapiscan to
enhance aviation security. We applaud the TSA for fostering
public-private partnerships such as this as it allows true
collaboration in developing the most sophisticated, comprehensive
solutions to today's complex security challenges."

   STIP is expected to provide more accurate and timely information
to key decision makers in the TSA. To do so, security equipment (metal
detectors, X-ray machines, explosive detection systems, etc.) can be
connected as a network, capable of sending data between disparate
sites and machines. The initiative will also allow administrative and
technical communications such as streamlined security updates,
alerting functions, remote maintenance and monitoring and asset
management.

   About OSI Systems, Inc.

   OSI Systems, Inc. and its subsidiaries are a vertically integrated
designer and manufacturer of specialized electronic systems and
components for critical applications. The company sells its products
in diversified markets, including homeland security, healthcare,
defense and aerospace. 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.

   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 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.

   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 about the TSA's STIP. The actual results may differ
materially from those described in or implied by any forward-looking
statement. In particular, the timing, and success of Phase Two of the
Program 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.