TAMPA, FL – General Electric Co. (GE) has unveiled a high-speed baggage-screening system for airports that it said combines health care-caliber imaging technology with state-of-the-art explosive-detection capabilities.

The new system, which GE said can screen bags checked by passengers at double the rate of most existing systems, is on track to be deployed at some U.S. and international airports beginning in the fourth quarter. The U.S. Transportation Security Administration recently certified it for use in the U.S., although it still must undergo field tests.

GE, a Fairfield, Conn., conglomerate, said the system uses three-dimensional imaging technology initially developed for the health-care industry. Computer software then analyzes the high-definition images for density, mass and other factors that could denote concealed explosives.

"The computer makes the decision for the vast majority of bags," said Michael Cavanaugh, chief marketing officer for GE's homeland-security division. "Only for those where it believes it detects a threat does it go to an operator" for a manual check.

Cavanaugh said the new system can screen up to about 1,000 bags an hour, compared to no more than 500 for most existing systems.

The price tag hasn't been set yet, but Cavanaugh said the cost will be higher than GE's existing baggage-screening technology. GE's existing system lists for about $1.2 million, although the figure varies because of volume discounts and other factors.

The TSA, which procures baggage-screening technology for U.S. airports, is expected to buy some of the new GE systems under an estimated $329.1 million, sole-source contract that it is in the process of negotiating. Under the planned five-year contract, the TSA would be able to buy both GE's new systems and its existing systems, depending on the needs of particular airports.

Cavanaugh said GE also plans to sell the new system overseas.

Copyright 2008 Dow Jones & Company. All rights reserved. From http://www.wsj.com. By Bob Sechler.
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