Varian Medical Systems And Mitsubishi Electric Corp. Complete Agreement For Joint Venture In Japan, Asia | Varian

Varian Medical Systems And Mitsubishi Electric Corp. Complete Agreement For Joint Venture In Japan, Asia

PALO ALTO, Calif. - Dec. 19, 2003 - Varian Medical Systems (NYSE:VAR)today announced that it has signed its agreement with Mitsubishi Electric
Corp. this week to enter a joint venture that will provide radiotherapy
equipment and service in Japan and other Asian countries.
In accordance with a letter of intent announced by the companies on October 8,
Mitsubishi Electric Corp.'s radiotherapy service business will be transferred
to the joint venture that will commence operation this February. The venture
will sell, service, and support Varian Medical Systems' full line of
radiotherapy products and Mitsubishi Electric Corp.'s medical linear
accelerators. Sales of Mitsubishi medical linear accelerators will be
discontinued after the first two years of the arrangement. The venture also
will service Mitsubishi's industrial linear accelerators.
Varian Medical Systems, the majority owner of the venture, will acquire
Mitsubishi Electric Corp.'s share of the venture at the end of the three-year
arrangement. The joint venture is expected to contribute $10 million to $12
million in additional annual service revenue to Varian Medical Systems and be
neutral to earnings in the first year and accretive in ensuing years. Based on
the expected performance of the venture, Varian's investment in the
transaction is expected to be in the range of $18 million to $20 million.