Revenues for the second quarter ended January 31, 2003, were a record $160,567,000, compared with the prior year's second quarter revenues of $72,610,000, an increase of 121%. Net income for the second quarter was a record $21,256,000, or $1.59 per diluted share. This compares with a net income of $605,000, or $0.05 per diluted share, for the prior year's second quarter.

Revenues for the six months ended January 31, 2003, were a record $296,269,000, compared with the prior year's six months' revenues of $148,412,000, an increase of 100%. Net income for the six-month period was $41,427,000 or $3.11 per diluted share, compared with net loss of $5,765,000, or ($.44) per diluted share, for the same period a year ago. The net loss for the first six months of the previous year included a first quarter asset impairment charge of $8,883,000 related to the Company's telecommunications subsidiary, Anatel Communications, and certain assets of the Test & Measurement Division. Excluding the asset impairment charges, net income for the first half of the prior year would have been approximately $1,341,000 or $.10 per diluted share.

Bernard Gordon, Chairman of the Board and CEO, commented, "We are very pleased with the results of the quarter, which went as anticipated. The record revenue and income were due primarily to an increase in our security imaging business. During the quarter we shipped a record number of our advanced EXplosive Assessment Computed Tomography (EXACT(TM)) systems to L-3 Communications (NYSE:LLL) for use in government-certified Explosive Detection Systems (EDS) that screen checked luggage for aircraft. Altogether, during Calendar 2002 we shipped a total of 425 EXACT systems to our customer, on or ahead of schedule, to help airports comply with the mandates of the Aviation and Transportation Security Act of 2001.

"In December we received a purchase order from L-3 Communications to deliver an additional 75 EXACT systems during the first four months of calendar 2003 for foreign and other anticipated orders. We believe that additional orders for EXACT systems should be forthcoming. At this time we do not know when such orders will be placed or the quantities that will be required. We therefore expect that security imaging revenues may vary significantly from quarter to quarter.

"What is clear is that there is a continuing airport demand for certified EDS systems that can be deployed inline. Placing EDS systems inline, away from passenger check-in areas, is the fastest, most efficient means of scanning checked luggage, and will enable airports to considerably reduce costs and eliminate passenger lines at stand-alone EDS systems deployed in the lobbies of many airports."

Gordon noted, "We are confident that there are other opportunities for long-term growth in developing security imaging systems for a variety of applications. For example, we are in the initial stages of testing prototypes of an automated, CT-based portal screening system that can scan carry-on baggage at airports, 'carry-in' baggage at public buildings, and parcels for corporations and delivery services. We are also continuing to increase our investment in a number of other development projects to meet diverse, evolving security needs in the U.S. and abroad.

"Our health businesses remained solid during the quarter, with significant growth in shipments of our CT Data Acquisition Systems (DAS's), including a new generation of 16-slice CT DAS's, of clinical ultrasound equipment developed by our B-K Medical subsidiary, and of ultrasound transducers by our new Sound Technology Inc., subsidiary. We are continuing to focus substantial resources," Gordon added, "in developing new generations of medical imaging equipment, including innovative CT systems for niche markets, advanced digital X-ray systems and subsystems for general radiography and mammography, and an extended family of multislice CT Data Acquisition Systems for both medical and security applications.

"Our recently recognized technological achievements in both health and security applications, and our expanded advanced system manufacturing facilities, have attracted considerable attention in the marketplace and are generating a number of major new business opportunities. We are very fortunate to have the contract to supply EDS systems for use by the Transportation Security Administration and the revenue, profits and cash flow it is generating for the Company. We are presently using these funds to identify and acquire, either through internal development efforts or acquisition, new products and technologies for the Company. We believe that our achievements over the first half of this fiscal year and our considerable investment in new product development in both health and security applications will help position the Company for continuing, long-term growth."

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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