VARIAN MEDICAL SYSTEMS ACQUIRES PAN-PACIFIC ENTERPRISES.

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MEDIA RELEASE PR28739

Varian Medical Systems Acquires Pan-Pacific Enterprises for Marketing, Sales and Distribution of X-Ray Imaging Products in China

PALO ALTO, California, Dec 26 /PRNewswire-AsiaNet/ - Varian Medical Systems, Inc., (NYSE: VAR) today announced it has completed the acquisition of Pan-Pacific Enterprises, Inc., the largest independent distributor of medical X-ray tubes in China, for the purpose of marketing, sales, and distribution of Varian X-ray imaging products in China.

Varian is acquiring the privately held business for approximately $2 million in cash plus an additional amount based on achievement of specified milestones. Pan-Pacific has been an independent distributor of imaging components, including Varian X-ray tubes, in China since 1991.

"This acquisition significantly enhances the Varian sales channel for X-ray tubes and flat panel image detectors in China," said Bob Kluge, President of Varian Medical Systems' X-Ray Products business.

"We intend to grow our X-Ray Products business in China and the experienced Pan-Pacific team will be instrumental in helping us achieve that objective. Our business specializes in delivering cost competitive, high performance components for X-ray imaging and they are well-suited to serve the growing market for high-quality imaging products in China."