Varian Associates Completes Reorganization Into Three Independent, Public Companies | Varian

Varian Associates Completes Reorganization Into Three Independent, Public Companies

PALO ALTO, Calif., -- March 31,1999 -- Varian Associates, Inc., today said that it will complete its reorganization into three independent, public companies at the end of this week with the April 2 distribution of shares in its instruments and semiconductor equipment spin offs to shareholders of record March 24, 1999.

The spin offs, known as Varian, Inc. (VARI), and Varian Semiconductor Equipment Associates, Inc. (VSEA), are currently being traded on the NASDAQ on a when-issued basis. Varian Associates, which will take the name Varian Medical Systems, Inc. (VAR), will continue to trade on the NYSE as a pure play medical equipment company after the distribution. In the interim it is also being traded on an ex-distribution basis on the NYSE.

Varian Associates is reconfiguring its board of directors to accommodate the spin offs. Richard W. Vieser, 71, retired chairman and chief executive of Lear Siegler, Inc., will serve as chairman of Varian Medical Systems. He will be joined on the board by directors John Seely Brown, 58, vice president and director of the Xerox Palo Alto Research Center and chief scientist of Xerox Corp.; Samuel Hellman, MD, 64, of the Department of Radiation and Cellular Oncology, University of Chicago; Terry R. Lautenbach, 60, retired senior vice president, IBM Corp.; David W. Martin, 58, president and chief executive, EOS Biotechnology, Inc.; and Burton Richter, 68, director of the Stanford Linear Accelerator Center. Varian Medical Systems president and chief executive Richard M. Levy, 60, will also serve as a board member.

Varian Associates Chairman and Chief Executive J. Tracy O'Rourke, 64, will serve as chairman of the Semiconductor Equipment Associates board. He will be joined by that company's president and chief executive, Richard A. Aurelio, 54, along with directors Ruth M. Davis, 70, president and chief executive, Pymatuning Group, Inc.; Robert W. Dutton, 55, director of research, Center for Integrated Systems, Stanford University; and Angus A. MacNaughton, 67, president, Genstar Investment Corp.

Varian Inc. will also have a five-member board. D. E. Mundell, 67, chairman, ORIX USA Corp., will serve as chairman. He will be joined by Allen J. Lauer, 61, the company's president and chief executive; John G. McDonald, 61, of the Stanford University Graduate School of Business faculty; Wayne R. Moon, 59, chairman and chief executive, Blue Shield of California; and Elizabeth E. Tallett, 49, president and chief executive, Dioscor, Inc. and Ellard Pharmaceuticals, Inc.

Varian Associates said results for the second quarter of fiscal 1999 will be released approximately 30-45 days after the close of the quarter on April 2. The company said the closing will require somewhat more time than usual because of the accounting complexities involved in completing the reorganization. This will be Varian's final earnings report as a diversified company.