5768--6/9/2006--AMERICAN_SCIENCE_&_ENGINEERING

related topics

{customer, product, revenue}

{stock, price, share}

{property, intellectual, protect}

{cost, regulation, environmental}

{product, candidate, development}

{product, market, service}

{stock, price, operating}

{product, liability, claim}

{acquisition, growth, future}

{personnel, key, retain}

{regulation, government, change}

{operation, international, foreign}

{provision, law, control}

{competitive, industry, competition}

The Company s reliance on a small number of customers for a large portion of its revenues could harm its business and prospects. The Company conducts its business worldwide, which exposes it to a number of difficulties in coordinating its international activities and dealing with multiple regulatory environments. The Company s lengthy sales cycle requires it to incur significant expenses with no assurance that it will generate revenue or recover such expenses. The Company s business is dependent upon governmental policies and appropriations. Changes in governmental regulations may reduce demand for the Company s products or increase its expenses. The Company s reliance on only a limited number of suppliers for some key components for its products could harm its business and prospects. Fluctuations in the Company s quarterly operating results may cause its stock price to fluctuate. The Company could incur substantial costs as a result of product liability claims and adverse publicity if its X-ray inspection systems fail to detect bombs, explosives, weapons, contraband or other threats to personal safety. The Company s insurance may be insufficient to protect it from product liability claims. The Company may not be able to fund its research and development activities. The Company s success depends on new product development. The Company s success depends upon its ability to adapt to rapid changes in technology and customer requirements. The Company may not be able to compete successfully. The Company s business could be harmed if it is unable to protect its intellectual property. The Company s business may be materially and adversely affected by infringement claims initiated by the Company or its competitors. The Company s success depends on its ability to attract and retain qualified management professionals. Future sales of the Company s common stock by existing stockholders could depress the market price of the Company s common stock. Existing external financing may not be available in the future. The volatility of the Company s stock price could adversely affect an investment in the Company s common stock. Provisions in the Company s articles of organization and the Company s shareholder rights plan may have the effect of discouraging advantageous offers for the Company s business or common stock, and limit the price that investors might be willing to pay in the future for shares of the Company s common stock. The Company does not plan to pay dividends on its common stock.

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5768--6/9/2006--AMERICAN_SCIENCE_&_ENGINEERING_INC