Expansion

PEABODY, MA (February 3, 2003) – Bernard M. Gordon, Chairman of the Board and CEO of Analogic Corporation (NASDAQ: ALOG), announced today that the Company is planning to construct a 100,000 square foot addition to its headquarters building in Peabody, Massachusetts. The headquarters currently encompasses over 400,000 square feet of engineering, manufacturing and administrative space.

Gordon said, “We are aggressively pursuing new opportunities in health and security applications that are expected to lead to significant long-term growth for Analogic. This two-story addition will enable the Company to further consolidate its existing Massachusetts operations and to expand production capacity for its medical and security imaging system businesses. A significant investment in our future, this expansion reaffirms our strong commitment to meeting the growing needs of our customers.”

Ground breaking is expected to occur in March 2003, with completion expected the following December. Architects on the project are Stubbins Associates, Cambridge, Massachusetts.

This will be the second major expansion in eastern Massachusetts by Analogic within the past year. In April the Company leased a 200,000 square foot building in Haverhill, Massachusetts, and transformed it into the world’s most advanced manufacturing facility for security Computed Tomography (CT) scanners, used in explosive detection systems that screen checked luggage for aircraft.

Two Analogic subsidiaries, Camtronics Medical Systems in Hartland, Wisconsin, and B-K Medical in Herlev, Denmark, recently doubled the size of their respective headquarters, including engineering and manufacturing facilities.

Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems sold 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.