Varian Medical Systems completes acquisition of ACCEL Instruments GmbH

31 January 2007

Palo Alto, Calif., USA. Varian Medical Systems, Inc., (NYSE:VAR) today announced it has successfully completed the acquisition of ACCEL Instruments GmbH, a privately-held supplier of scientific research instruments and proton therapy systems for cancer treatment. Varian paid approximately $30 million to acquire 100% of ACCEL, including its bank debt.

"We are pleased to add this promising new business to our growth portfolio," said Tim Guertin, president and CEO of Varian Medical Systems. "With ACCEL Instruments, we have the opportunity to build a several hundred million dollar business based on improving cancer care with a clinically practical and affordable system for proton therapy."

ACCEL has approximately $30 million in annual revenues. Management expects that the addition of ACCEL's operations will reduce earnings per diluted share by about $0.06 to $0.07 to between $1.82 and $1.85 in fiscal year 2007, be about neutral in fiscal year 2008, and be accretive thereafter. Results for ACCEL will be included in Varian's "Other" business category.

ACCEL, which is based in Bergisch Gladbach near Cologne, Germany, has about 250 employees. The business will report to Varian Vice President Lester Boeh, who is responsible for managing Varian's portfolio of emerging businesses.

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