Rapiscan Systems Receives First Order for Its New Multi-View X-Ray System for Hold (Checked) Baggage Screening
January 31 2006 - 8:00AM
Business Wire
Rapiscan Systems, a division of OSI Systems, Inc. (Nasdaq:OSIS)
announced today that it had received its first order for the
recently released Rapiscan MVXR5000 Inline Automated Hold Baggage
Screening System ("HBS") for checked baggage. The order was part of
an approximate $1 million contract the company received from an
undisclosed international customer. The order also included
multiple conventional X-ray baggage inspection systems and
peripheral security devices. It is expected that the systems will
be delivered and installed over the next three to six months. The
market for HBS Systems traditionally has been shared between L3
Communications Holdings, Inc. and Smiths Heimann, a division of
Smiths Group, PLC. Rapiscan Systems intends to market its newly
released Rapiscan MVXR5000 to its established global aviation
customer base both for replacement cycle business and also new
installations. The company estimates that the aviation market for
Inline HBS systems, outside of the U.S., is approximately several
hundred systems over the next five years. President of Rapiscan
Systems Ajay Mehra stated, "We are pleased today to announce our
first order for the Rapiscan MVXR5000, our first product offering
in the Inline Automated HBS market. This order highlights the
company's ability to leverage its position as a global leader in
the aviation security market to drive sales in the HBS market. We
intend to continue leveraging this position and our installed base
of aviation x-ray systems as we market the Rapiscan MVXR5000
globally." Rapiscan Systems had announced on December 12, 2005 that
the Rapiscan MVXR5000 had been approved for use by the United
Kingdom (UK) Department for Transport ("DfT"). The DfT designation
allows Rapiscan Systems to sell the Rapiscan MVXR5000 system in the
UK and international aviation markets. The system provides the
operator with enhanced image and dual-energy X-ray images that
enable automated explosives detection. 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. 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 and anesthesia products,
and optoelectronic devices and value-added subsystems. 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 sales of the Rapiscan
MVXR5000 and the entry into and performance of Rapiscan Systems in
the hold baggage screening systems market. 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 Rapiscan Systems will be able to leverage its position as a
global leader in the conventional baggage screening market to drive
sales in the hold baggage screening market, that Rapiscan Systems'
internal estimates of global market opportunities will prove
accurate, that its current marketing plans will remain constant, or
that future sales of the MVXR5000 will occur or be significant.
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.
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