SUNNYVALE, CA - March 10, 2003 - Advanced Research and ApplicationsCorporation (ARACOR), a leading manufacturer of x-ray imaging systems, announces that it has received a five-year contract with the U.S. Customs Service (USCS) for Eagle cargo inspection systems. The Eagle is designed for inspecting cargo and trucks at seaports and other ports of entry. The primary use by USCS and many other nations will be to prevent the smuggling of weapons, explosives, drugs and other contraband. However, some nations have expressed interest in such an inspection capability for financial reasons - to combat duty fraud and prevent the export of stolen goods. There is no limit to the number of systems that can be ordered under this contract, which has an estimated value in excess of $40 million. An initial order was placed for two Eagles. The order also provides for the development of new technology, which will provide additional operational flexibility and support new Customs programs. "The inspection requirements facing our nation are enormous," said Dr. R. A. Armistead, President of ARACOR. "There are 185 commercial deep-water ports comprising over 1,900 public and private marine terminals with over 3,200 berths for deep draught vessels. In 2001, the USCS processed more than 214,000 vessels and 5.7 million sea containers. The USCS has been successfully operating an Eagle at the Port of Miami since 2001." Dr. Armistead added, "We are pleased that the Eagle has been selected for use at U.S. seaports and will play an important role in fighting terrorism and protecting our country! Seaports alone represent a substantial business opportunity for ARACOR. In addition, the Eagle can be used to inspect trucks and rail cars at land borders or at the entry point to facilities." Why inspect cargo There are many reasons that countries conduct inspections at their borders and ports of entry. It is well known that many countries suffer annual losses in the billions of dollars due to duty fraud. In addition, inspections are conducted to detect drugs, weapons, explosives and other types of contraband. In the U.S., there is a growing concern that attempts may be made to smuggle a weapon of mass destruction into the country. At most international ports, thousands of cargo containers arrive and depart daily. Thus, it is very important to have a system that can penetrate virtually all cargoes, is accurate and provides high inspection throughput. The Eagle is such a system - inspectors can now rapidly and economically inspect substantially more containers to combat terrorism, to verify customs declarations and detect contraband. The Eagle inspection system The Eagle represents the world's most efficient and economical means of radiographically examining cargo containers and trucks to detect contraband and to verify manifests. The Eagle provides exceptional operational flexibility; it moves under its own power from one location to another and can be transported intact by ship, or disassembled for shipment by truck or rail. The Eagle can rapidly and accurately inspect trucks and cargo containers, even when loaded with dense cargo. Its 6 MV linear accelerator x-ray source from Varian Medical Systems (NYSE:VAR) provides high-energy operation and, hence, greater cargo penetration and faster inspection rates than any other mobile inspection system. Cargo equivalent to more than 300 mm (12 inches) of steel can be penetrated and a 20-foot sea cargo container can be scanned in less than thirty seconds! The image is immediately available to the inspector. Although the comprehensive evaluation of an image can take minutes, new wireless data communications technology enables additional inspectors at a separate location to participate in image evaluation. Tests by teams from other government agencies have demonstrated that the Eagle provides superior imaging performance and is the only self-propelled system whose beam can penetrate and image the contents of fluid-filled tank cars and refrigerated containers. Furthermore, the Eagle's unique design ensures that it can be safely operated in congested areas, such as seaports and border crossings, without employing large exclusion areas or radiation badges for personnel. In addition, measurements have determined that a stowaway hidden in a truck or container as it is being inspected by the Eagle would only receive approximately 5% of his/her annual radiation exposure limit and would not be harmed. ARACOR (www.aracor.com) headquartered in Sunnyvale, CA with an office in Dayton, OH is privately held. In addition to the Eagle cargo inspection system, the company develops and manufactures x-ray test and inspection systems for industrial nondestructive evaluation and process control applications, and provides research services in related areas. ARACOR is a leading manufacturer of digital radiographic (DR) and computed tomography (CT) systems. Its DR and CT products range from high-resolution systems designed for the detailed characterization of electronic components and advanced materials, to high-energy systems designed for inspection of large, highly-attenuating structures such as castings, rocket motors, nuclear weapons, automobile components and cargo containers. ARACOR is also developing systems that can detect special nuclear materials, nuclear weapons, explosives and drugs while x-ray inspections of the cargo are being conducted by the Eagle. # # #