Introduction Letter from the President

In addition to the success our RTT has achieved, ECAC recently confirmed the Standard 2 explosive detection capabilities of our Multi-View X-Ray (MVXR) hold baggage screening system under Common Evaluation Protocol (CEP). With this confirmation, Rapiscan is now the only manufacturer to provide both ECAC Standard 2 and Standard 3 certified solutions that can process up to 1,800 bags per hour. You can read more about both of these great achievements below.

Also in this issue, find out the latest Olympics news with less than 100 days until the Opening Ceremonies, Save the Date for this year’s Distributors Symposium and read about our new demo facility in Garner, North Carolina.

Sincerely,
Ajay Mehra
President – Rapiscan Systems

Rapiscan RTT Achieves EU Certification

After months of testing and years of development, we’re pleased to announce that the Rapiscan RTT (Real Time Tomography) ultra-high speed baggage screening system has passed the European Civil Aviation Conference’s (ECAC) Standard 3 threat detection test. This achievement makes RTT the ONLY 1,800 bags per hour screening solution on the market to meet this emerging standard, one that all EU airports will have to adopt over the coming years.

RTT and Rapiscan are positioned to completely change the way that airports look at baggage screening, thanks to our solid-state approach, which allows rapid imaging alongside extremely low maintenance requirements. RTT also matches the speed of standard baggage handling systems, eliminating the need to slow down baggage operations to inspect parcels or to run parallel systems.

Once again, Rapiscan is leading the way when it comes to innovating in the security screening world – congratulations to the RTT team!

Rapiscan MVXR Achieves ECAC Standard 2

On the heels of the Rapiscan RTT meeting the European Civil Aviation Conference (ECAC) Standard 3 Explosive Detection standards, we’re pleased to announce that the Rapiscan MVXR 5000 has achieved ECAC Standard 2 Explosives Detection performance under Common Evaluation Protocol (CEP). The MVXR 5000 is one of only a few hold baggage screening systems to meet ECAC CEP Standard 2, allowing EU airports to meet new baggage screening requirements while not breaking budgets.

The Rapiscan MVXR 5000 screens up to 1,800 bags per hour and provides optimal performance and lower false alarm rates, resulting in fewer bags selected for hand screening. The system offers a modular design, making it simple to integrate with existing baggage handling systems and meeting the demands of even the most strenuous security environments. Even with its powerful detection capabilities and vast scalability and flexibility, the MVXR 5000 is cost-effective and highly reliable, ensuring system longevity and a high return on investment.

Rapiscan is now one of only two companies that can offer hold baggage screening solutions that meet both ECAC CEP Standard 2 and Standard 3 standards, giving airports unprecedented flexibility when it comes to security.

Companies Find Success with Metor 6S

As you may remember, last summer Rapiscan introduced the state-of-the art Metor 6S walk-through metal detector. The detector features exceptional sensitivity and is designed specifically for detecting small ferrous and non-ferrous items such as prison razors, razor blade pieces, metal shanks, handcuff keys, detonator caps, jewelry, coins and microprocessor and memory chips.

Since its introduction, the Metor 6S has been integrated into security checkpoints of companies worldwide – many of which found success with the machine almost instantly. We recently received a testimonial from a security officer who had the Metor 6S installed at his company for loss prevention purposes. Just two days after the company installed the machine they had a subject try to exit their facility with a cell phone in his shoe. The Metor 6S detected the metal from the phone and gave the guard a visual zone to check below the knee – enabling the guard to find the cell phone immediately. With the company’s previous metal detector, all of the zones would light up for everyone that passed through, making it very difficult for the guards to focus on one zone. Just one week after this incident, the same company was able to catch five other employees walking out with cell phones hidden inside sandwiches in their lunch bags.
Needless to say, the security officer and his management team have been extremely impressed by the detection capabilities of the Metor 6S and will be ordering 11 more units

Selling Rapiscan BPI

Have you ever wondered what sets Rapiscan’s Baggage and Parcel Inspection (BPI) systems apart from the competition? What points should you stress to help you close that sale? Aside from having the highest throughput with lowest cost of operation, here are some other themes to focus on when selling Rapiscan BPI systems.

· Rapiscan BPI products have the largest global regulatory approvals, certifications and qualifications including those from the European Commission Civil Aviation (ECAC), U.K. Department for Transport (DfT), U.S. Transportation Security Administration (TSA), France Service technique de l’aviation civile (STAC) and the Civil Aviation Administration of China (CAAC).

· Rapiscan BPI products meet or exceed the most stringent global regulatory requirements for non-intrusive screening or baggage and parcel in aviation, air cargo, customs and critical infrastructure protection.

· Rapiscan BPI systems meet the most rigorous requirements of government regulators for automatic detection of solid and liquid explosives as well as narcotics.

· With products and solutions that integrate seamlessly into any environment, Rapiscan has installed more than 15,000 BPI systems globally. Our elite customer base includes: U.S. Customs and Border Protection, U.S. Transportation Security Administration, Hong Kong International Airport, U.K. Manchester Airport Group and U.S. Department of Defense.

· With a dedicated research and development team, and the ability to utilize off-the-shelf components, as well as state of the art manufacturing facilities, Rapiscan BPI products and solutions offer superior technology with a lower cost.

· Rapiscan Systems is committed to customer satisfaction through performance excellence. We continuously improve the quality of our BPI products and services. Additionally, our BPI platform not only meets current global requirements, but it puts in place a foundation that customers will be able to capitalize on in the future.

Rapiscan Awarded Prestigious Queen’s Award

Rapiscan is very proud to announce that we were recently awarded the Queen’s Award for Enterprise in Innovation 2012. Viewed as the U.K.’s most prestigious awards for business performance, we received the award for the development of our Eagle Radiation Detection solutions. Eagle Radiation Detection offers superior threat detection in the most complex of security scanning environments. Our Cargo and Vehicle Inspection (CVI) team developed the Eagle Radiation Detection device to identify gamma or gamma neutron radiation emitted from containerized or vehicle-borne cargo.

We are honored to have received this award and offer our congratulations to the CVI team for their hard work in making the Eagle Radiation Detection solutions a success! The award is a great validator of the innovation and leadership that Rapiscan continues to introduce to the security screening industry.

Historic $900M Mexico Deal

In January, Rapiscan closed a $400 million deal with Mexico’s customs and tax authority, Servicio de Administración Tributaria (SAT), to provide turnkey screening services for the authority. This relationship was just beginning, however, as in late February, SAT exercised additional contract options, driving the value of the overall deal to nearly $1 billion, one of the biggest contracts in company history.

As stipulated by the contract, Rapiscan will provide the complete operation of SAT inspection sites utilizing X-ray screening technology. Via Rapiscan’s turnkey security screening approach, the company will manage all aspects of the sites, from staffing and training to integration and maintenance. The sites range from inland border crossings to major ports of entry and airports, enhancing the Mexican government’s ability to interdict contraband, undeclared and illegal materials.

More than just a major contract, the Mexico deal is another proof point that turnkey security screening is the way forward in the security world. Just as the Puerto Rico Ports Authority did, SAT recognized the importance of having a screening expert like Rapiscan oversee their inspection operations, not just provide equipment. This trend will only continue to grow, putting Rapiscan in an excellent position in the marketplace moving forward.

New Demo Facility in Garner, NC

Late last year, as part of a U.S. Army contract awarded to Rapiscan Systems to provide entry control point solutions in Afghanistan, the company established a demo facility in Garner, N.C., close to Rapiscan’s cargo screening systems manufacturing facility in nearby Apex, N.C.

Per Stephen McHugh, Rapiscan’s Vice President, Defense Operations, the facility is a showroom, testing and deployment office for Rapiscan’s integrated checkpoint solutions.

Moving beyond just providing screening equipment, Rapiscan has been identifying and working with partners to integrate additional security offerings into the company’s checkpoint screening solution. McHugh specifies that instead of just providing non-intrusive inspection systems (X-ray screening, baggage and parcel inspection systems and traditional metal detectors), the company is now looking at partnering with others to provide thermal imaging, high-speed high-resolution cameras, barriers (for people and vehicles) and turnstiles to control people traffic into and around checkpoints to critical infrastructure.

Geared toward the defense and homeland security community, the 70,000 square foot Garner facility is equipped with training and demo lanes showcasing Rapiscan’s ability to integrate additional products and equipment to create a full screening solution. Additionally, the company has outfitted the facility with people, baggage and cargo screening equipment to highlight how they too can integrate into a full checkpoint solution.

As Rapiscan moves forward as a full service security provider, the company will continue to identify and work with vendors that can provide additional capabilities that can be layered on top of Rapiscan’s current security solutions. By providing customers with what is most important to them in a comprehensive security screening solution, customers will notice a cost savings while also protecting personnel by creating an environment where access can be controlled without putting people in harms way.

For more information on Rapiscan’s Garner facility,

New Demo Facility in Garner, NC

We are pleased to announce that Bob Goodhouse has joined the Rapiscan team as vice president of Middle East sales. In his new role, Bob will work towards the goal of making Rapiscan the number one provider of security scanning solutions in the Middle East. He will be responsible for expansion into new geographic locations and the creation of new governmental and private sector accounts.

Bob brings tremendous experience in sales, the security screening industry and the Middle East marketplace. He previously held the position of Corporate VP for the Middle East and Africa Business Units at FMC for 14 years. After FMC was split apart, Bob joined AS&E for eight years, making them a major player in the Middle East marketplace.

Bob is a graduate of Georgetown University and in his free time enjoys gardening, piano, and collecting anything to do with the French Revolutionary period, the Hapsburg monarchy in the 1800’s, old maps, Egypt, the Arabian Gulf, and Talleyrand.

Please join us in welcoming Bob!

Olympics 2012: The Final Countdown

It’s hard to believe that less than 90 days remain until the London 2012 Olympic games!

On Saturday, May 5, Rapiscan participated in the largest test event to date, with more than 75,000 people entering the Olympic stadium in one day. This event also represented the first multi-venue test event, with five venues in use and more than 100 machines deployed throughout the Olympic park.

As the games inch closer, equipment is being ramped up with all deliveries scheduled and all inventory now being stored in four different locations across the U.K. Currently, Rapiscan has a team of nine dedicated engineers as well as the services department resources, with plans to increase the workforce over the next few months. In the weeks preceding Opening Ceremonies, Rapiscan will be completing up to 40 installations a day. In total we are providing and installing equipment for 72 different venues across the U.K.!

During and prior to the Games, all engineers working in the Olympic venues will be wearing dual branded clothing with both the Rapiscan and London 2012 logos. This will include polo-shirts, trousers, sweatshirts and waterproof jackets. The Salfords offices have also been rebranded with striking graphics in preparation of the Games.

The final countdown to the event is ticking down and Rapiscan is working tirelessly towards ensuring a safe and exciting event!

Save the Date for the 2012 GDS

We are glad to announce that the 2012 Global Distributor Symposium will be held from Monday, October 1st through Thursday, October 4th just outside of Washington, DC, USA.

The location is the Westfield Marriott Washington Dulles hotel in Chantilly, Virginia.

The schedule will be for delegates to arrive on Monday, October 1st for guest registration.

The symposium will commence on Tuesday morning and will end mid afternoon on Thursday.

In order for you to make preliminary arrangements, such as arranging a visa if necessary, we would like to inform you of these dates and allow you to block your calendar