Varian Expands Presence in China

The company has established a wholly foreign-owned enterprise (WFOE), which will own and operate the facility where it will manufacture medical linear accelerators that are exclusively designed for the Chinese market and for global export. This new facility adds capacity complementary to Varian's main manufacturing site in Palo Alto and positions the company to meet increasing global demand for its medical linear accelerators.

Construction on the estimated U.S.$12 million facility will be completed in March 2007, and the company expects to begin its first product shipments from the facility in July 2007. The company has also appointed Wang Xiao Yun, former CEO of BMEI, a Chinese manufacturer of linear accelerators, managing director of Varian Medical Systems Beijing Co., Ltd.

"This important project expands Varian's global manufacturing and service capability in the radiation therapy market with the greatest growth potential in the world,” said Tim Guertin, president and CEO of Varian Medical Systems. "We are especially pleased to have Mr. Wang, China's most experienced radiation therapy executive, to lead this important new enterprise.”

The new state-of-the-art 134,000 square foot plant will employ about 100 people and be located in the Beijing Economic-Technological Development Area (BDA), a well-established industrial zone on the southern edge of Beijing. The expansion builds on Varian's existing sales and service operations in China where it has an installed base of more than 250 linear accelerators in leading academic centers, hospitals, and local cancer clinics throughout the country. Varian has operated in China for more than 25 years.

"This is an important new project that will lead to better cancer care in China with leading technology from Varian Medical Systems,” said Mr. Wang. "Varian has earned a reputation for producing the highest quality, most reliable, and most cost-effective cancer treatment machines in the world. This new enterprise brings this life-saving technology closer to Chinese clinicians and their patients.”



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