Announces Record Revenues and Earnings for Its First Quarter

Revenues for the first quarter ended October 31, 2002, were a record $135,702,000, compared with the prior year's first quarter revenues of $75,802,000, an increase of 79%. Net income for the first quarter was a record $20,171,000, or $1.52 per diluted share. This compares with a net loss of $6,370,000, or a loss of $0.49 per diluted share, for the prior year's first quarter. The net loss for the prior year's first quarter included a pre-tax asset impairment charge of $8,883,000 related to the Company's telecommunications subsidiary, Anatel Communications, and its Test & Measurement Division.

Bernard Gordon, Chairman of the Board and CEO, commented, "We are very pleased with the results of this quarter. The record revenue and income were due in large part to a significant increase in our security imaging business. During the quarter we shipped a substantial number of our advanced EXplosive Assessment Computed Tomography (EXACT/oo) systems to L-3 Communications (NYSE:LLL) for use in government-certified Explosive Detection Systems (EDS) that screen checked luggage for aircraft."

"We established a new CT production facility, recruited and trained an expanded manufacturing staff, and ensured adequate sources of critical components within very short time frames. The new production facility in Haverhill, Mass., was transformed from an empty warehouse into what we believe to be the most advanced security CT manufacturing plant in the world in less than four months, and we were producing security CTs at the rate of six a day by October. We have been on or ahead of the delivery schedule from the inception of the project. The remainder of the systems ordered for delivery by the end of this calendar year will also be shipped on time."

Analogic recently received a purchase order to deliver an additional 75 EXACT systems during the first four months of 2003. We believe that orders for additional EXACT systems will be forthcoming to meet a continuing demand for EDS systems. Our customer has indicated that it also expects a sizeable overseas demand for these systems once U.S. security needs are met.

Gordon noted, "Although some observers have thought of this demand for EDS systems as a short-term `bubble,' we believe there are opportunities for long-term growth in developing security imaging systems for a number of applications, such as carry-on baggage, `carry-in' baggage at public buildings, and parcel services. We have increased our investment in a number of projects to develop a suite of security detection products to meet diverse, rapidly evolving needs in the U.S. and abroad."

"We are also focusing substantial resources," Gordon added, "in the development of innovative medical CT systems for a number of rapidly developing niche markets, as well as in advanced digital X-ray systems and subsystems and a whole new generation of CT Data Acquisition Systems for both medical and security applications. We believe that our achievements in this first quarter will help position the Company for long-term growth in both health and security applications."

Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems sold primarily to Original Equipment Manufacturers (OEMs). The Company is recognized worldwide for advancing the state of the art in Computed Tomography (CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging (MRI), Patient Monitoring, Cardiovascular Information Management, and Embedded Multiprocessing.

This press release contains the Company's or management's intentions, hopes, beliefs, expectations or predictions. These are considered "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements (statements which are not historical facts) in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements, including statements about product development, market and industry trends, strategic initiatives, regulatory approvals, sales, profits, expenses, price trends, research and development expenses and trends, and capital expenditures involve risk and uncertainties and actual events and results may differ significantly from those in any forward-looking statements. Actual results may differ materially from those indicated by such statements as a result of various factors, including those discussed in the company's periodic reports filed with the SEC.

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