Salick Health Care, Inc. and Varian Medical Systems Announce Supply Agreement for Cancer Treatment Systems.

Business Editors/Health & Medical Writers

PALO ALTO, Calif.--(BW HealthWire)--June 13, 2001

Varian To Be Sole Source Supplier of Radiotherapy Equipment,

Including SmartBeam IMRT Technology, Through 2004

Varian Medical Systems, Inc. (NYSE:VAR) and Salick Health Care, Inc. (SHC), a company that provides consulting and management services to outpatient comprehensive cancer centers throughout the United States, today announced that they have signed a sole source agreement to supply the cancer centers with advanced radiotherapy systems for treating cancer. The three-year contract covers Varian's state-of-the-art equipment and software for SmartBeam(TM) IMRT (intensity modulated radiation therapy), a new form of highly precise radiation therapy that targets cancer cells with high doses while minimizing the exposure of nearby healthy tissue.

"Salick Health Care is a technologically driven business that is committed to investing in proven technologies to keep the centers' programs on the cutting edge and competitive over the long term," said Peter Jessup, SHC CEO. "This contract will enable us to bring the most advanced cancer treatments like SmartBeam IMRT to patients in a cost effective way."

"Salick Health Care has demonstrated leadership in outpatient oncology treatment since 1985. They have plans for implementing Varian's SmartBeam IMRT at a majority of sites," said Timothy Guertin, president of Varian Medical Systems' oncology business. "Under this contract, Varian will provide the cancer center facilities with access to equipment and support for implementing IMRT."

The agreement covers Varian Medical Systems' full range of products, including Clinac(R) EX Platinum linear accelerators, Ximatron(R) treatment simulators, multi-leaf collimators, brachytherapy systems, medical imaging systems, and software for planning treatment and managing patient information. In addition, Varian and Salick Health Care have signed an all-inclusive service agreement by which Varian will manage maintenance activities for SHC's eight affiliated cancer centers. The service agreement covers preventative maintenance, emergency service response, and proactive parts replacement.

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 2,400 people and reported sales of $690 million in its most recent fiscal year ended September 29, 2000. For more information, visit www.varian.com.

Salick Health Care has developed a unique patient-centered model for outpatient oncology, that offers diagnostic and treatment services 24 hours a day, seven days a week. The Company manages eight comprehensive cancer centers in California, Florida and New York and provides a broad range of consulting services to help its clients build and operate successful cancer programs in any environment from physician office to community hospital to academic medical center.

This press release contains certain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which provides a "safe harbor" for these types of statements. These forward-looking statements are subject to risks and uncertainties that could cause the actual results of Varian Medical Systems, Inc. to differ materially from management's current expectations. These risks and uncertainties include, without limitation, product demand and market acceptance risks; new product development and commercialization; the impact of managed care initiatives in the U.S. on capital expenditures and resulting pressures on medical equipment purchases; and other risks detailed in Varian Medical Systems, Inc. filings with the Securities and Exchange Commission. Varian Medical Systems, Inc. assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.