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® 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® Portal, incorporating the Company’s proprietary Auto-Z™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® 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® 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.