Palo Alto, CA - June 26, 2003 - Varian Medical Systems, Inc. (NYSE:VAR),the world's leading manufacturer of integrated systems for radiation therapy, today announced it has signed a five-year, renewable principal provider agreement to supply radiotherapy equipment and services to The University of Texas M. D. Anderson Cancer Center. As part of the agreement, M. D. Anderson has placed an initial $16.8 million order for radiation oncology hardware and software. M. D. Anderson's initial equipment acquisition under this agreement includes multiple high energy linear accelerators equipped with the most advanced versions of Varian's multileaf collimators, portal imaging devices, and quality assurance tools used for IMRT and image guided radiotherapy. According to James Cox, M.D., head of the Division of Radiation Oncology at M. D. Anderson, this agreement formalizes what was already an important relationship. "We've been working with Varian for a long time," he said. "In 2001, we were the first institution in the world to acquire an EXaCT Targeting™ installation combining Varian's Clinac® linear accelerator with a CT scanner from GE Medical Systems. And we have long been a Varian SmartBeam™ IMRT site." "This agreement represents a long-term partnership between our organizations," said Mitch Latinkic, administrator of the M. D. Anderson Radiation Oncology Department. "We chose Varian because we wanted more than just a vendor we wanted a partner that can collaborate with us in moving the field of radiation oncology forward." "M. D. Anderson is known internationally for outstanding programs in patient care, research, medical education, clinical trials and cancer prevention," said Tim Guertin, president of Varian's Oncology Systems business. "We're pleased to be providing them with equipment and services for their state-of-the-art facilities. And we look forward to working with them as we develop and test new technologies."