OSI Systems Awarded $2 Million Contract from U.S. Domestic Nuclear Detection Office to Complete Development of Advanced Rad-Nuke Detection Technology

HAWTHORNE, Calif., Jan 21, 2009 (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 received a contract for approximately $2 million from the U.S. Department of Homeland Security's Domestic Nuclear Detection Office. Under the terms of the contract award, the Company will complete the development of an advanced technology that would be capable of detecting weapons of mass destruction such as nuclear weapons and radiological dispersal devices (i.e. dirty bombs). The technology is to be incorporated on the Rapiscan Eagle^(R) Portal and used for the inspection of trucking and shipping containers.

This contract represents the culmination of a four-year development program conducted by Rapiscan. The enhanced Rapiscan Eagle^(R) Portal, incorporating the Company's proprietary Auto-Z(TM)algorithm which provides automatic detection of high-atomic-number materials associated with nuclear weapons as well as shielding materials, recently completed a preliminary evaluation conducted by government experts at the Company's testing facility where it was able to detect simulated nuclear threats in a variety of cargo. Upon completion of the contract award it is expected that the DNDO will deploy the system at a U.S. port for pilot testing where it will be operated under controlled conditions within the port's normal stream of cargo commerce.

The Rapiscan Eagle^(R) Portal is a drive-through X-ray imaging system capable of penetrating dense cargo at increased inspection rates without the impeding the flow of commerce. The system is part of Rapiscan's Eagle^(R) product line of High Energy X-ray Cargo inspection systems that features mobile, gantry, portal and fixed deployment configurations. The products have been installed internationally for use by military, customs and border protection agencies.

About OSI Systems, Inc.

OSI Systems, Inc. is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense and aerospace industries. We combine more than 30 years of electronics engineering and manufacturing experience with offices and production facilities in more than a dozen countries to implement 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 the enhanced Rapiscan Eagle^(R)Portal incorporating the advanced Rad-Nuke detection technology.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
Vice President, Investor Relations & Business Development
310-349-2372
jnorton@osi-systems.com

Copyright Business Wire 2009