Think of InVision's products when reading this. It relates very much to INVN. AS&E products are not FAA approved for airports.
American Science and Engineering, Inc. Announces CEO Testifies Before Aviation Sub-committee on Aviation Security
September 2001 (Newstream) -- American Science and Engineering, Inc. (AMEX:ASE) a leading developer and manufacturer of X-ray based inspection systems, announced that Ralph S. Sheridan, CEO and President, testified before the Aviation Sub-committee of the House Committee on Transportation and Infrastructure on Aviation Security, chaired by U.S. Rep. John Mica (R-FL). The hearing convened at the Rayburn House Office Building on Capitol Hill.
Following is Ralph S. Sheridan's testimony: On September 11, 2001, a new form of global terrorism breached the existing aviation security regimen in three airports, rendering obsolete previously held strategies for counter terrorism protection. The discounted theory of well-financed, well-trained terrorists committing their lives en masse to accomplish their mission is today's horrific reality. While our level of preparedness to confront this risk is woefully inadequate, technology exists today at my company and others to counter this heightened threat. There is no single technology that alone will address sophisticated terrorists' threats at airports. There are available today, however, a combination of technologies that working in unison could significantly improve security. Initially the application of these technologies will be expensive and cumbersome to the traveling public and to shippers. But, with additional development funds, existing technologies can be refined to be faster, more effective and less invasive.
AS&E was one of the original X-ray pioneers responding to the Cuban hijacking epidemic of the late 60's. In the mid 1990's we turned away from U.S. aviation because of: (1) a paucity of government funding for aviation research and development; and (2) a national strategy of reliance on deterrence with lower cost, less effective X-ray systems, rather than detection. Instead, we focused our physicists and engineers on the development of cargo and vehicle inspection systems with funding from the Department of Defense to address the problems of drugs in trucks and cargo, as well as for the protection of military bases from El Khobar-type truck bombings. Today, AS&E is the leader in X-ray inspection of trucks and sea containers for explosives, drugs, trade fraud, weapons, and illegal immigrants.
With regard to terrorism, the uniqueness of AS&E's technology in detecting plastic explosives has made it the overwhelming choice (more than 75%) to protect high-threat federal facilities both in Washington, DC and elsewhere. The Capitol Police, the U.S. military, the Department of State (for protection of embassies overseas), and more than thirty other U.S. federal agencies deploy our systems for protection against sophisticated terrorist explosives and weapons. You yourselves passed through our equipment to reach this conference room.
At the core of AS&E's non-intrusive inspection systems is Z®Backscatter technology. Backscatter is especially effective in the detection of explosives, composite weapons, plastics and drugs. Metallic objects such as conventional knives and firearms are often better visualized with transmission X-rays. Without foreknowledge of the threat, it is most prudent to inspect for both by utilizing systems that combine transmission with Backscatter X-ray images. Dual energy and CT systems that are used today also lack Z Backscatter's ability to detect organic material. Backscatter images provide detection of plastic explosives or plastic weapons even if hidden in cluttered environments.
AS&E's inspection systems are used to detect explosives and contraband in a wide array of applications, from small packages and letters to large containers, vehicles and trucks. In 1995, the Company introduced BodySearch™, the first Z Backscatter personnel inspection system for the detection of explosives, drugs, and weapons that would otherwise go undetected by metal detectors.
International governments that have a high threat of terrorism use our systems for the protection of airports, high threat government facilities and heads of state. These include a large number of our Middle Eastern allies to protect against fundamentalist Islamic attacks.
Because of budget constraints and a narrow definition of the threat level, U.S. airports rely on transmission-only systems for screening carry-on luggage. Furthermore, it is my understanding that checked baggage on domestic flights was screened only occasionally, if at all, by any X-ray equipment. The systems utilized for carry-on baggage screening at U.S. airports have historically been transmission-only X-ray systems rather than technology that combines both transmission and Z Backscatter X-rays. This combined, but necessary technology admittedly comes at a higher price.
It is important to note that the U.S. Air Force uses Z Backscatter systems to scan luggage and parcels to protect flights to and from our overseas military bases. Our equipment is also used by the U.S. Customs Service to examine baggage, mail, cargo and passengers from international arrivals at United States airports for organic concealments. These systems could also be used to screen carry-on baggage and cargo for departures.
This past week Transportation Secretary Norman Mineta advised 'we must do whatever it takes with safety as our highest priority.' To achieve a higher threshold of safety requires fielding an integrated array of technologies. Performance, not price, must be the criterion. The traveling public deserves no less.
In conclusion, I want to reiterate that while our Z Backscatter technology is unique and very powerful in detecting explosives, it is only part of an integrated gauntlet of technologies that are available off-the-shelf to respond today to terrorism. A new security regimen will initially be expensive, cumbersome and require traveler patience. With bold funding by the government, these technologies can be refined and made more efficient and less invasive. You now have that opportunity. I welcome your questions.
AS&E develops and manufactures sophisticated X-ray inspection products for critical detection and security applications. These systems are solving an expanding range of inspection problems, including detecting car and truck bombs, combatting weapons smuggling, personnel inspection, and imaging cargo to expose trade fraud and illegal immigration. AS&E's patented Z®Backscatter technology detects plastic explosives, illegal drugs, and other contraband, even when artfully concealed in complex backgrounds by terrorists and smugglers. For more information on AS&E products and technologies, please visit the Company's web site at as-e.com.
Safe Harbor Statement
The foregoing press release contains statements concerning the Company's financial performance and business operations which may be considered "forward-looking" under applicable securities laws. The Company wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements.Factors which might cause actual results to differ materially from those projected in the forward-looking statement contained herein include the following: significant reductions or delays in procurements of the Company's systems by the United States and other governments; disruption in the supply of any sole-source component incorporated into the Company's products (of which there are several); litigation seeking to restrict the use of intellectual property used by the Company; potential product liability claims against the Company; global political trends and events which affect public perception of the threat presented by drugs, explosives and other contraband; global economic developments and the ability of governments and private organizations to fund purchases of the Company's products to address such threats; and the potential insufficiency of Company resources, including human resources, capital, plant and equipment and management systems, to accommodate any future growth. These and certain other factors which might cause actual results to differ materially from those projected are more fully set forth under the caption "Risk Factors" in the Company's Registration Statement on Form S-3 (SEC File No. 333-9151).
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