Intraop Medical Corporation Announces Financial Results for Quarter Ended March 31, 2005.

SANTA CLARA, Calif. -- Intraop Medical Corporation (OTCBB:IOPM), manufacturer of the Mobetron(R), today filed Form 10-QSB with the Securities and Exchange Commission in which it reported financial results for the three and six months ended March 31, 2005. On March 9, 2005, the Company completed its merger with Intraop Medical, Inc., after which time the sole business of the Company became that of Intraop Medical, Inc.

For the six months ended March 31, 2005 revenue grew to $2.56 million from $0.28 million for the same period in the previous fiscal year. Net loss before interest expense for the six months ended March 31, 2005 increased to $2.36 million from $1.46 million for the same period in the previous fiscal year. Nonrecurring expenses associated with the completion of the merger contributed $1.67 million to the loss for the six months ended March 31, 2005. Net loss, including interest expense was $3.14 million for the six months ended March 31, 2005, ($0.19) per basic and diluted share, compared to $1.64 million, ($0.12) per basic and diluted share, for the same period in the previous fiscal year.

"With the merger now behind us," commented Donald Goer, President and Chief Executive Officer of the Company, "we can focus our efforts on Mobetron production and expanding our installed base of Mobetron systems. We expect Mobetron shipments to resume in the third quarter and that sales should be strong for the balance of the year. We are headed to the best performance in our history."

About Intraop Medical Corporation

Intraop Medical Corporation (OTCBB:IOPM) was formed in April 1993 to develop, manufacture, market and service the Mobetron, a mobile electron beam system designed for intraoperative radiotherapy ("IORT") treatment of cancer, coronary/vascular restenosis and other medical applications. Unlike other IORT systems, the Mobetron uses several patented technologies to allow IORT to be delivered without requiring operating room shielding. The Mobetron can be moved between operating rooms or even between hospitals, thereby increasing the systems utilization and cost effectiveness.

This press release contains "forward-looking statements" within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. Actual results could differ materially, as the result of such factors as competition in the markets for the company's products and services and the ability of the company to execute its plans. By making these forward-looking statements, the company can give no assurances that transactions described in this press release will be successfully completed, and undertakes no obligation to update these statements for revisions or changes after the date of this press release.