Varian Medical Systems, Inc. to Acquire MDS Nordion's High Dose Rate (HDR) Brachytherapy Business | Varian

Varian Medical Systems, Inc. to Acquire MDS Nordion's High Dose Rate (HDR) Brachytherapy Business

PALO ALTO, Calif., June 26, 2002 - Varian Medical Systems, Inc.,(NYSE:VAR) today announced an agreement to acquire MDS Nordion's (NYSE:MDZ,
TSX:MDS) business for HDR brachytherapy a minimally invasive procedure for
eradicating cancerous tumors with radiation. The acquisition will expand
Varian Medical Systems' capability to offer hospitals and free standing
clinics a complete range of HDR brachytherapy services and products, including
the MDS Nordion line of GammaMed™ afterloaders. Varian Medical Systems
will pay approximately $11 million in cash for the business.

"Coupled with Varian Medical Systems' existing successful brachytherapy
business, this acquisition enables our company to offer customers the broadest
range of delivery systems and applicators for HDR brachytherapy and
significantly strengthens our ability to serve international markets
particularly Europe," said Dick Levy, president and CEO of Varian Medical
Systems. "We will have products for all price ranges, a wide array of
applicators for every clinical need, and an installed base of more than 550
clinics that form the foundation for a strong service business with a global
reach. We gain some natural synergies in which more products and services can
be offered to customers of both businesses."

"The sale of our HDR brachytherapy business allows MDS Nordion to focus on our
comprehensive Oncentra™ suite of oncology treatment planning, record and
verify and information management products as well as the Theratron™
teletherapy and Gammacell™ blood irradiator product lines," says Ken
Johnson, Senior Vice President, Oncology Software Solutions, MDS Nordion. "We
will be working together with Varian Medical Systems to ensure a smooth
transition for those customers who use GammaMed™ products."

Varian Medical Systems currently supplies its advanced SmartSeed™ system,
incorporating the VariSource™ afterloader and the company's
BrachyVision™ 3D treatment planning software for very precise,
image-guided HDR brachytherapy. The acquisition will add two afterloader
models the three channel GammaMedplus™ 3/24 and the 24-channel
GammaMedplus™ that will be available at low- and mid-range prices
with 2D, applicator-based planning systems.

"We will offer customers a choice of delivery systems and a selection of more
than 100 clinically proven applicators," said William Hyatt, vice president
and general manager of Varian Medical Systems' brachytherapy business unit,
which operates within the company's Ginzton Technology Center. Through the
combined business, Varian Medical Systems will offer brachytherapy delivery
systems, radioactive sources, applicators, treatment planning software, and
service.

Brachytherapy is the delivery of radiation therapy through the placement of
one or more tiny radioactive sources in or around a cancerous tumor. The
technique is designed to deliver a large dose of radiation to the tumor while
sparing surrounding healthy tissue, often as a boost to external beam
radiotherapy treatments or as a primary treatment for other diseases such as
gynecological cancers. Radioactive sources are placed within the tumor through
catheters or rigid applicators that have been inserted into the treatment
site. HDR brachytherapy uses a robotic device, or afterloader, to transport a
wire with a high-energy, radioactive source on it's tip, through a catheter to
the tumor site. The wire with the radioactive source is moved, under computer
control, within the catheter, thereby delivering a specified dose
distribution. The wire is then withdrawn into the afterloader.

HDR brachytherapy is becoming a more important modality for the growing number
of cancer cases throughout the world. It is being used to treat almost all
intracavitary and intraluminal sites, including prostate, gynecological,
cervix, lung, esophagus, rectum, bile duct, nasopharynx, and breast cancers.

Varian Medical Systems is the world's leading supplier of non-invasive systems
for treating cancer with external beam radiation, including SmartBeam™
IMRT (intensity modulated radiation therapy). "By expanding our technology and
product offerings for both external beam radiotherapy and brachytherapy, we
expect to address all clinical needs for radiation therapy," said Levy.
Radiation therapy is used to treat more than half of all cancer patients in
the United States.

Together with Varian Medical Systems' existing business, this acquisition will
result in a $30-35 million annual brachytherapy business for the company. The
company expects the acquisition to be neutral for the remainder of fiscal 2002
and slightly accretive in fiscal 2003. The transaction is expected to be
closed by mid-July and is not subject to any pre-closing regulatory filings.

Varian Medical Systems or MDS Nordion brachytherapy customers who want
additional information regarding this transaction, products and services
should call 888-666-7847.