Sep 25, 2006

OSI Systems Receives $3.5 Million Contract From U.S. Government Agency For Baggage & Parcel X-Ray Systems

OSI Systems Receives $3.5 Million Contract From U.S. Government Agency For Baggage & Parcel X-Ray Systems

OSI Systems Receives $3.5 Million Contract From U.S. Government Agency For Baggage & Parcel X-Ray Systems

OSI Systems, Inc. (NASDAQ: OSIS), a vertically integrated provider of specialized electronic products for critical applications in the Healthcare and Security industries, announced today, that its Security and Inspection subsidiary, Rapiscan Systems received a $3.5 million contract from a U.S. Government Agency. The order, for multiple Rapiscan 620XR baggage and parcel inspection X-ray systems, is expected to begin shipping in the second quarter of fiscal 2007.
Under the terms of the contract Rapiscan will provide its Rapiscan 620XR X-ray systems which are to be used to screen mail and visitors packages at multiple federal facilities throughout the United States.

Rapiscan Systems, President, Mr. Ajay Mehra stated, We are pleased to be working closely with the federal government to provide them with their security needs. The contract highlights the continued success we are having with the introduction of the advanced Rapiscan 600 series of baggage and parcel inspection X-ray systems both domestically and internationally as demonstrated by our recent announcement of the receipt of contracts totaling $13.2 million for these systems.

About OSI Systems, Inc.

OSI Systems, Inc. is a Hawthorne, California based diversified global developer, manufacturer and seller of specialized electronics security and inspection systems, medical monitoring and anesthesia products, and optoelectronic devices and value-added subsystems. The company has more then 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 and 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 companys 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 our expectations, goals or intentions about the future, including, but not limited to, statements regarding the sales of the Rapiscan 600 series X-ray systems. 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 the Rapiscan 600 series will continue to achieve domestic and international customer support or support from new customer. 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.

For Further Information

OSI Systems Inc
Jeremy Norton Director of Investor Relations                       
12525 Chadron Ave
Hawthorne CA 90250
Tel: (310) 349 2237
E: jnorton@osi-systems.com