Focusing Energy on Saving Lives

Forward-Looking Statements

Except for historical information, this report on Varian Medical Systems’ financial performance contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including growth drivers; the company’s future orders, revenues, backlog, or earnings growth; future financial results; market acceptance of or transition to new products or technology such as RapidArc therapy, image-guided radiation therapy (IGRT), stereotactic radiosurgery, filmless X-rays, proton therapy, and security and inspection, and any statements using the terms “believe,” “could,” or similar statements are forward-looking statements that involve risks and uncertainties that could cause the company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the effect of economic conditions, including the current global recession, currency exchange rates and tax rates; the impact of health care reforms, and/or third-party reimbursement levels and credit availability for capital expenditures for cancer care; demand for the company’s products; the company’s ability to develop and commercialize new products; the company’s ability to complete the planned sale of instruments portion of the company’s ACCEL proton therapy business; the company’s reliance on sole or limited-source suppliers; the impact of reduced or limited demand by sole purchasers of certain X-ray tubes; the company’s ability to maintain or increase operating margins; the impact of competitive products and pricing; the company’s ability to meet Food and Drug Administration and other regulatory requirements for product clearances or to comply with Food and Drug Administration and other regulatory regulations or procedures; the ability to make strategic acquisitions and to successfully integrate the acquired operations into the company’s business; the company’s ability to protect the company’s intellectual property; the potential loss of key distributors or key personnel; and the other risks listed from time to time in the company’s filings with the Securities and Exchange Commission, which by this reference are incorporated herein. The company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

Focusing energy on saving lives

X-Ray Technology for:More effective cancer therapy

Better imaging and medical diagnostics

Safer borders

VMS Profile

Orders: $2.3 B

Sales: $2.1 B

EPS: $2.31

Operating Earnings 20% of sales

Employees: 5,100

NYSE Symbol: VAR

Note:(1) FY08 Operating Earnings includes amounts for total share-based compensation expense and its related tax benefits.(2) FY08 EPS includes $0.21 net earnings per diluted share for share-based compensation expense.(3) The operating results exclude discontinued operations.(4) Orders, sales and EPS for FY08.

Business Segments - OrdersFY08 %

Oncology Systems $1,871M 81%RadiotherapyBrachytherapyRadiosurgery

X-Ray Products $ 337M 15%TubesFlat Panel Imagers

Other $ 94M 4%Ginzton Technology Center Security and Inspection ProductsACCEL Proton Therapy

TOTAL $2,302M 100%

Oncology Market Environment

International maintained momentumJapan, China, Middle East, Eastern Europe, Canada strong

Western Europe stable

U.S. headwind – more uncertaintyNew, smaller capital budgets

Radiotherapy still a priority

Credit available but tighter, interest higher

Reimbursement ?

Competitive Landscape

Varian gaining shareRapidArc

Radiosurgery

Motion management

Broad product offering

Competition pricing aggressively

RapidArc Driving Differentiation

Over 120 RapidArc installations worldwide

Phase II releasedNon-coplanar, multiple arcs available

Adding clinical indicationsAdult Hodgkins lymphoma

Whole abdominal irradiation

Medulloblastoma in adults

Mesothelioma

Paraspinal Lesion

SRT brain mets+ whole brain RT

Schwannoma Glioblastoma SRS multiplemetastases

RapidArc – Clinical Indications I

Hippocampus sparing PCI

Head and neck Bilateral Breast NSCLC

Cervix Uteri

RapidArc – Clinical Indications II

Pancreas Chordoma ProstateAnal Canal

Abdominal MetsMultiple

pelvic nodes

Seminoma Whole Abdominal Irradiation

RapidArc – Clinical Indications III

PaediatricHL

Adult

HL

Adult Craniospinal(medulloblastoma)

Mesothelioma

Radiosurgery Update

60+ Varian surgical installations

Funnel active but moving slower

Growing share

Market hybridizing: radiotherapy/radiosurgery

Varian StrengthsSpeed

Cost per treatment

Flexibility

Lung Cancer…next major target

VARIAN MEDICAL SYSTEMS

Disease site New Cases / yr Deaths / yr Deaths / yr (%)

Prostate 218,890 27,050 12%

Lung 213,380 160,390 75%

Breast 180,510 40,910 23%Head and Neck 45,660 11,210 25%

Brain (primary) 20,500 12,740 62%

Cervix 11,150 3,670 33%

*WHO estimates of 25M lung cancer patients in China in 2025

SBRT Results

PrePre--TreatmentTreatment 22 mo. Post22 mo. Post--TreatmentTreatment

Source: Robert Timmerman MD, UT Southwestern, Dallas

Central Lung Lesion

Before After

12 Gy x 4

Oncology Service GrowthOncology Service Growth

Growth DriversExpanding installed baseRicher product mix .... premium pricingPoint of Sale Service Agreements for ClinacsSoftware Service AgreementsStrategic Accounts focusProfessional Services

Productivity DriversFaster installsSmartConnectContinuous design enhancements

~15%

FY2008 FY2009E

Net Orders

VARIAN MEDICAL SYSTEMS

Marketing Initiatives

X-Ray Product Lines

Medical X-Ray TubesDiagnostic x-rayCT Scanner tubesMammography tubes

Industrial X-Ray TubesFlat Panel Imaging Systems

Dynamic imaging panelsRadiographic imaging panels

0

50

100

150

200

250

300

350

2005 2006 2007 2008 2009

Flat PanelTubes

2009 = half year

mill

ions

Annual Growth Rate - 18% 17% 13% 19%

Tube and Panel Sales Growth by Year

Current Market Environment

Market for “Big Ticket” Imaging Equipment in U.S. is down significantly impacting X-ray Tube sales

Europe and Asia are little changed

Replacement Tube for service not effected

Sale of low/mid tier x-ray tubes remain strong

Digital Imaging panels remain a solid growth opportunity DR has replaced image intensifiers on high tier x-ray equipment

DR is moving into mid tier applications

DR radiography panels are challenging film and CR

Economically sensitive segments (Dental, Veterinarian) are down

World FPD Market – Wholesale Value

Adjusted for economic slowdown ( 2009 – 2010)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

CR RAD Dynamic Dental Mammo

Flat Panel X-Ray Tubes

High Heat Dissipation

Lighter Weight

Smaller Focal Spots – Higher Power

Continuous Heat Dissipation @ 5,000 Watts

Greater Clarity - Less Fog in Picture

Beam Characteristics Optimized for Flat Panel Detectors

Security & Inspection Products

Oncology Strategy Meeting-Financial 3-24

7

Oncology Strategy Meeting-Financial 3-24

9

Cargo Screening

Non-Destructive Testing

Market Update

Security market demand stable in US & EMEA

Some tenders postponed in Eastern Europe/LA

Image quality, speed, automated threat identification, and ease of use requirements increasing

NDT market growing Renewed interest in nuclear power

New CT imaging capabilities

Replacements

Linatrons by region

As of May 2009

FY-09 Highlights

US Customs and Border Protection (CBP) seizes >$2M in cash alongwith narcotics, contraband and weapons using Varian technology

Deployment of the Mi product family, enabling automatic detection of WMD’s, nuclear materials and materials discrimination well underway

Delivery of >20 Linatron and detector sets for ports and borders in the Middle East

Two high-energy inspection systems for use on the NASA Space Shuttle Reusable Solid Rocket Motor program

New ultra compact portable imaging system for field inspection of bridges, munitions and more

New Las Vegas manufacturing facility fully operational

Materials Discrimination –What Does It Tell Us?

Varian Proton Therapy Highlights

Achieved CE certification in Feb. ’09

First patient treated in Munich

Cyclotron at the Paul Scherrer Institute (PSI) in Switzerland exceeding performance expectations

Manufacturing facility in Germany now open

First cyclotron in production

Thank you