Norfolk & Norwich University Hospital to Install Advanced Cancer Treatment Equipment From Varian Medical Systems.

Business Editors/Health & Medical Writers

NORWICH, England--(BW HealthWire)--March 12, 2002

Norfolk and Norwich University Hospital NHS Trust today announced a 15-year, 20 million pound sterling (U.S. $29 million) service agreement to upgrade its cancer treatment program with radiotherapy equipment and software from Varian Medical Systems (NYSE:VAR). Under the program that will be financed by Singer & Friedlander Healthcare, the Trust will equip its hospital facility to offer patients advanced forms of radiotherapy, including IMRT (intensity modulated radiation therapy) and brachytherapy.

Varian Medical Systems, Inc., the world's leading manufacturer of integrated systems for radiation therapy, will supply, install, service, and upgrade the radiotherapy systems at Norfolk and Norwich University Hospital here. Varian will equip the hospital with four state-of-the-art linear accelerators, a treatment simulator, and an afterloader for high dose rate brachytherapy. It also will provide software for processing diagnostic images, planning radiation treatments, and managing clinical information systems. The computerized cancer treatment network will include a CT (computed tomography) scanner from General Electric Medical Systems for generating the diagnostic images needed for treatment planning.

"This project reflects our commitment to providing cancer patients with the very best radiotherapy in the world. These new facilities will be a model for other centres around the world and demonstrate our determination to provide clinical excellence for NHS patients in East Anglia," said Malcolm Stamp, chief executive of the Norfolk and Norwich University Hospital NHS Trust.

"This unique, long-term agreement requires a strong working relationship between the Trust and its supplier," said Stamp. "We chose to work with Varian Medical Systems because of its technological leadership, its record for reliability, its standing as a respected international health technology business, and its experience at managing complex, long-term projects."

Trust project manager Robert Hutchings said: "What makes this scheme so different is that all future requirements for the next 15 years have been included in the negotiated contract. This includes maintenance, all parts, and future upgrades to keep the equipment up to date with cutting-edge clinical practice. Obsolescence has effectively been designed out of the agreement."

"For staff and patients this is a unique opportunity to access the latest and most effective radiotherapy treatment," said Fiona Durban, who manages the Trust's radiotherapy service. "We are very fortunate to have a team of highly trained and enthusiastic therapists, physicists, nurses, and doctors who will use this equipment to deliver state-of-the-art radiotherapy treatments. We are very excited by the treatment options we will be able to offer patients."

The Norwich network will be capable of treating patients with SmartBeam(TM) IMRT. Each of the new Varian Clinac(R) linear accelerators will be equipped with a high resolution multileaf collimator, an accessory that has 120 computer-controlled mechanical "leaves" or "fingers" used to shape radiation beams to that they hit tumours while avoiding the patients' surrounding healthy tissues. The units also feature digital imaging systems for patient positioning and quality assurance, and Varian's computerised treatment planning software, which turns data from three-dimensional diagnostic images into sophisticated, customised treatment plans.

"Varian Medical Systems is pleased to be working in a close partnership with the Trust to bring the best possible treatment facilities to patients," said Walter Frei, Varian Medical Systems' European vice president of marketing operations. "We commend the Trust for ensuring that Norfolk and Norwich patients have access to the latest technology available for treating cancer."

"This project now confirms Varian Medical Systems as the leading solutions provider for such UK Radiotherapy Public Private Partnerships," added Michael Sandhu, Varian's UK Sales Manager.

Varian Medical Systems is initially booking almost one quarter of the total value of the contract for equipment and software which is scheduled to be installed and operating by the end of this summer. Orders for the balance of the contract for additional equipment, upgrades, maintenance, and replacement are anticipated to be booked as they occur over the next 15 years based on the schedule of the services agreement. Financing fees from Singer & Friedlander Healthcare will amount to a little more than one fifth of the total value of the contract.

Norfolk and Norwich University Hospital clinicians treat over 2000 cancer patients every year.

The Norfolk and Norwich University Hospital opened in Norwich on 15 December 2001 and is a 229 million pound sterling development. This September, in a joint venture with the University of East Anglia (UEA), the hospital becomes one of the first new teaching hospitals in the country in more than 30 years.

Varian Medical Systems, Inc., (NYSE:VAR) of Palo Alto, California, is the world's leading manufacturer of integrated cancer therapy systems as well as X-ray tubes and flat-panel sensors for imaging in medical, scientific, and industrial applications. Varian Medical Systems employs approximately 2,570 people and reported sales of $774 million in its most recent fiscal year ended September 28, 2001. The company operates a facility for manufacturing, sales, service and research and development in Crawley, England. For more information, visit www.varian.com.

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