Focusing Energy on Saving Lives

Forward-Looking Statements

Except for historical information, this presentation and report on Varian Medical Systems’ financial and business

performance contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of

1995. Statements concerning industry outlook; growth drivers; the company’s future orders, revenues, backlog,

earnings growth or other financial results; market acceptance of or transition to new products or technology such as

our TrueBeam and RapidArc products, image-guided radiation therapy (IGRT), stereotactic radiosurgery, filmless X-

rays, proton therapy, and security and inspection, and any statements using the terms “expect,” “could,” “believe,”

“estimate,” “outlook,” 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 global recession, currency exchange rates and tax rates; the

impact of healthcare reform, third-party reimbursement levels and/or 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 maintain or increase operating margins; the impact of competitive products and pricing; the 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; 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 information contained in this presentation should not be construed or otherwise used as an

indication, predicator or update of our future financial results. The company assumes no obligation to update or revise

the forward-looking statements in this presentation because of new information, future events, or otherwise.

Mission: Focusing Energy on Saving Lives

X-Ray Technology for:

� Faster, easier, more precise cancer therapy

� Better imaging and medical diagnostics

� Safer borders and ports

Oncology Systems - $1.8B

X-Ray Products - $330M

Varian Medical Systems FY’09 Orders

Security and Inspection Products - $83M

Oncology Systems Growth Initiatives

� Innovating, enhancing

� Speed, patient throughput

� Precision

� Versatility

� Ease of use and adoption

� Modernizing, replacing installed base Modernizing, replacing installed base

� Equipping under-served international markets

� Expanding clinical applications

� Building, maintaining customer service

� Lowering cost per treatment

Innovation

New products introduced since 2004

� Clinac® iX, Trilogy®, Novalis Tx, UNIQUE™, TrueBeam™

� RapidArc®, Gated RapidArc

� HD 120 Multi-leaf Collimator

� On-Board Imager®

New motion management capabilities� New motion management capabilities

� Treatment planning software enhancements

� Automated contouring

� Acuros™ advanced dose calculation

� Information management

� Integrated treatment planning, oncology EMRs

� OncQT and OncoView

TrueBeam™

New system design for radiotherapy, radiosurgery

Introduced New York, April 14th 2010

Varian Radiosurgery

� Varian Strengths� Speed� Motion management� Versatility� Low cost per treatment

Surgical Platforms� Surgical Platforms� Trilogy� Novalis Tx� TrueBeam STx

� Orders >500 units*

* Since 2004

Next Targets; New Applications

Source: Global Cancer Facts & Figures 2007, p.3. American Cancer Society

2.25M patients / year 2M deaths / yearCure 4.5% of these patients

SBRT Results

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

Source: Robert Timmerman MD, UT Southwestern, Dallas

Oncology Systems Service

Growth Drivers

� Expanding installed base

� Richer product mix .... premium pricing

� Software Service Agreements

� Strategic Accounts focus

Professional Services

~17%

Revenues

> $500M in annual recurring revenue

� Professional Services

Productivity Drivers

� Faster installs

� Remote diagnostics

� Continuous design enhancements

� Logistics, JIT parts delivery

FY2004 FY2009

5-year average annual growth rate

Global Radiation Oncology Market ~$3.7B

� Varian ~60% share

� 5900+ Varian installations

Elekta

Elekta Siemens Accuray Other Tomotherapy Varian

Varian

Elekta

Tomotherapy

Other

Accuray

Siemens

X-Ray Products

X-ray Tubes

Flat-panel detectors

X-Ray Products Growth Initiatives

� Technology, New Products

� Improving quality, speed, cost efficiency

� Supporting fast, filmless digital imaging

� Reducing x-ray doses

� Offering high power, compact tube designs

� ServiceService

� Technical collaboration

� Worldwide distribution

� Reloading capability in U.S, Europe, Asia

� Manufacturing

� Continuous cost reduction

� Six Sigma process

200

250

300

350

Flat Panel

Tube and Panel Sales Growth by Yearm

illi

on

s

0

50

100

150

200

2005 2006 2007 2008 2009

Flat Panel

Tubes

mil

lio

ns

Annual Growth Rate 18% 17% 13% 19% 9%

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

Varian Particle Therapy Update

• ~200 patients treated at RPTC

• Resubmitted Skandion bid

• Pursuing >10 deals for new centers

• Ramping up production

Varian Particle Therapy Growth Strategy

� Standardized, cost effective solutions

� Capitalize on Varian infrastructure, technology, service

� Integration, planning, imaging, dose delivery, motion management, information management

Pencil-beam scanning� Pencil-beam scanning

� Compact, superconducting cyclotron

Security & Inspection Products Growth Initiatives

Cargo

Increasing throughput

Automating threat identification

Reducing system size, costs

Expanding services

NDTNDT

Automating inspection

Expanding benefits of CT imaging

Replacing installed base

1MeV system for Army (Rapiscan)

Third Quarter 2010 Results

VMS OS XRP Other

Net Orders 629 14% 507 10% 103 26% 20 135%

Revenues 578 13% 456 6% 102 52% 20 37%

Gross Margin 44% 45% 40% 38%

R&D 39

SG&A 85

Op Earnings 131 23% ROS (+ 28%)

Interest Expense (0.9)

EPS $0.74 (125M diluted shares)

Note: (1) Dollars in millions, except per share amounts.(2) The operating results for the Other segment and Total VMS exclude discontinued operations.

Q3 FY10 YTD Results

VMS OS XRP Other

Net Orders(1)

1,780 10% 1,419 7% 307 27% 54 (13%)

Revenues 1,705 8% 1,351 6% 296 24% 58 (6%)

Gross Margin 44% 46% 40% 27%

R&D 116

SG&A 248

Op Earnings 385 23% ROS (+ 19%)

Interest Expense (1.5)

EPS $2.10 (125M diluted shares)

Note: (1) Net Orders for the Other segment and Total VMS excludes the reversal of a $62M proton therapy order.(2) Including the proton order cancellation, net orders were $1,718M , up 6% for Total VMS and ($8M),

down (113%) for the Other segment.(3) Dollars in millions, except per share amounts.(4) The operating results for the Other segment and Total VMS exclude discontinued operations.

Net Orders and Revenues(Quarter ended 07/02/10)

300

400

500

600

700Q3 FY10

0

100

200

300

Q309 Q310

Orders Revenues

Net Orders and Revenues(FY10 YTD ended 07/02/10)

1600

1650

1700

1750

1800Q3 FY10 YTD

1450

1500

1550

1600

Q309 YTD Q310 YTD

Orders Revenues

Operating Margin and Net Earnings(Quarter ended 07/02/10)

60

80

100

120

140Q3 FY10

0

20

40

60

Q309 Q310

Op Earnings Net Earnings

Operating Margin and Net Earnings(FY10 YTD ended 07/02/10)

200

250

300

350

400

450Q3 FY10 YTD

0

50

100

150

Q309 YTD Q310 YTD

Op Earnings Net Earnings

Backlog $2,068M(As of 07/02/10)

1500

2000

2500

0

500

1000

FY 2007 FY 2008 FY 2009 FY 2010

Q1

Q2

Q3

Q4

Q3 FY10 Balance Sheet / Cash Flow

Conservative balance sheet

$588M cash and cash equivalent

$23M total debt

$1,387M stockholder equity

*DSO 80 days*DSO 80 days- down 3 days from year ago quarter- up 4 days from prior quarter

Cash Flow$68M cash flow from operationsSpent $116M to repurchase 2.3M shares in Q310

*Days Sales Outstanding

Fiscal 2010 Outlook(As of end of Third Quarter, Fiscal 2010)

� Revenues growth estimated at ~ 6% to 7% for

FY 2010

� EPS estimated at ~ $2.90 to $2.93 for FY 2010

� Tax Rate estimated at ~ 31% to 32% for FY 2010� Tax Rate estimated at ~ 31% to 32% for FY 2010

� EPS estimated at ~ $0.80 to $0.83 for Q4 FY 2010

� Tax Rate estimated at ~ 31% for Q4 FY 2010

Varian updates its outlook once per quarter when it reports financial results.

The outlook is for Continuing Operations.

Varian Medical Systems (NYSE:VAR)

Investment Summary

Market and technology leadership

Multiple platforms for global growth

Radiotherapy/Radiosurgery

Filmless X-ray imaging

Proton Therapy

Port and border protection

> $500M Annual service business> $500M Annual service business

Management focus on execution, innovation

Strong balance sheet, significant cash flow, stock buybacks

Thank you