Dec 4, 2008

OSI Systems Receives Two Advanced Technology Contracts from the U.S. Domestic Nuclear Detection Office

OSI Systems Receives Two Advanced Technology Contracts from the U.S. Domestic Nuclear Detection Office 12.3 KB

HAWTHORNE, Calif., Dec 04, 2008 (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, has been awarded two advanced technology demonstrator (ATD) contracts for $1.6 million from the U.S. Domestic Nuclear Detection Office (DNDO). The contracts are incrementally funded and if all options are subsequently exercised, the total contract award could total approximately $14 million.

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. This 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 as well as shielding materials used to diminish the detection of 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 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 OSI Systems, Inc.

OSI Systems, Inc. is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applicationsinthe homeland security, healthcare, defense and aerospace industries. We combinemore than 30 years ofelectronics engineering and manufacturing experience withoffices and production facilities in more than a dozen countries toimplement a strategy of expansion into selective end product markets. For more information on OSI Systems Inc. or any of its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-G

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.

SOURCE: OSI Systems, Inc.

OSI Systems Inc
Jeremy Norton, 310-349-2372
Vice President, Investor Relations & Business Development
jnorton@osi-systems.com

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