InVision Technologies Contracted to Provide Service for U.S. Explosives Detection Systems; Contract Could Total $300 Million if All Options Exercised

    NEWARK, Calif.--Jan. 31, 2003--InVision Technologies, Inc. today announced that it has contracted with Siemens to provide maintenance and service for all InVision explosives detection systems (EDS) in the United States. Under this agreement, InVision will provide 24-hour service seven days a week for its EDS products sold to help keep the nation's aviation security infrastructure operating at peak efficiency. If all options are exercised by Siemens, including annual extensions, InVision believes the value of this agreement could be approximately $30 million in 2003 and as much as $300 million over as many as five years, representing service for systems that are beyond warranty periods and the provision of round-the-clock coverage for all installed systems.
    Siemens is a member of the Boeing Company's Homeland Security Services team that has a prime contract with the Transportation Security Administration's for the installation, maintenance and service of TSA-owned EDS.
    "We are pleased to have been selected by the Boeing/Siemens prime contractor team," said Sergio Magistri, Ph.D., InVision's president and chief executive officer. "Throughout 2002, we expanded our service infrastructure as our base of installed systems grew, and we continue to build our capabilities. This agreement reflects our commitment to build a field service organization that can respond quickly to service these state-of-the-art systems, regardless of their location."
    Dr. Magistri added, "This agreement further bolsters our long-term operating margin target of approximately 20% by increasing the visibility of the service revenues over time."
    To clarify a recent analyst report regarding revenue projections for 2004, the company issued a press release on October 22, 2002 with 2004 guidance. In that press release, the company indicated that it expected 2004 revenues to be at or above its estimate of revenues of $400 million for 2003. However, InVision is not updating its 2004 revenues at this time.
    InVision Technologies, Inc. will report fourth-quarter and full-year results on February 13, 2003.
    InVision Technologies develops, manufactures, markets and supports explosives detection systems based on advanced Computed Tomography (CT) technology for civil aviation security. InVision's wholly owned subsidiary Quantum Magnetics develops weapons, narcotics, explosives and other detection systems based on quadruple resonance and other proprietary magnetic sensing technologies. InVision's wholly owned subsidiary Inovec develops, manufactures, markets and supports scanning, optimization and control systems for the forest products industry. Additional information about InVision can be obtained on the company's web site at http://www.invision-tech.com.

    This news release contains forward-looking statements regarding InVision's projected 2003 service revenues and future service revenues, InVision's continuing build up of its service infrastructure, and obtainable operating margins. Investors are cautioned to consider the important risk factors that could cause actual results to differ materially from those in the forward-looking statements in this news release. These risk factors include: the risk that anticipated service revenues may not be realized due to Congressional funding for the agreement at levels below those anticipated in the agreement, the non-renewal by Siemens of the agreement, the election by Siemens not to exercise all options available to it under the agreement, and unforeseen problems relating to the company's service infrastructure; the risk that the company may not achieve anticipated operating margins due to unforeseen or increased expenditures; and other risks detailed under the captions "Business Risks" or "Risk Factors" in InVision's most recent reports on Forms 10-Q and 10-K/A filed with the Securities and Exchange Commission. InVision is under no obligation, and expressly disclaims any obligation, to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    Note to Editors: CTX, CTX 2500, CTX 5500 DS, CTX 9000 DSi and QRCTX are trademarks of InVision Technologies, Inc. or its subsidiaries.