Focusing Energy on Saving Lives

Forward-Looking Statements

Except for historical information, this report on Varian Medical Systems’ financial performance contains forward-lookingstatements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including growth drivers; the company’s 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 “estimate,” “believe,” “expect,” “can,” “grow,” “could,” “should,” “continue,” “sets the stage” 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 demand for the company’s products; the company’s ability to develop and commercialize new products; the company’s ability to meet demand for manufacturing capacity; 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 effect of economic conditions, increase operating margins; the impact of competitive products and pricing; the effect of economic conditions, currency exchange rates, and tax rates; the effect of changes in accounting principles; 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 possibility that material product liability claims could harm future revenues or require the company to pay uninsured claims; the effect of environmental claims and expenses; the company’s ability to protect the company’s intellectual property; the impact of managed care initiatives, other health care reforms, and/or third-party reimbursement levels and credit availability for capital expenditures for cancer care; the potential loss of key distributors or key personnel; consolidation in the X-ray tubes market; the risk of operations interruptions due to terrorism, disease or other events beyond the company’s control; 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 report 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 - $2.1B

X-Ray Products - $419M

Varian Medical Systems FY’10 Orders

Security and Inspection Products - ~$60M

Oncology Systems Growth Initiatives

� Innovating, enhancing

� Speed, patient throughput

� Precision

� Versatility

� Ease of use and adoption

� Lowering cost per treatment

� Modernizing, replacing installed base

� Equipping under-served international markets

� Expanding clinical applications - radiosurgery

� Building, maintaining customer service

The Varian Difference: Value

� Speed

� Automation

� Streamlined workflow

� Versatility

� Image quality

� Enabling clinical innovation

� Reliability and uptime

� Service

Innovation

New products introduced since 2004

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

� RapidArc®, Gated RapidArc

� HD 120 Multi-leaf Collimator

� On-Board Imager®

Treatment planning software enhancements - Eclipse� Treatment planning software enhancements - Eclipse

� Automated contouring

� Acuros™ advanced dose calculation

� Information management - Aria

� Integrated treatment planning, oncology EMRs

� OncQT and OncoView

TrueBeam Story

� >228 orders since April 2010 launch

� > 60 installs complete or underway

Global Radiation Oncology Market

� Annual Market - ~$4B

� Varian Q4 Market Share – ~55%

Elekta

Varian

Elekta

Tomotherapy

Other

Accuray

Siemens

Oncology Systems Service

15%

Revenues

~$600M in annual recurring revenue

Growth Drivers

� Expanding installed base

� Premium product mix

� Software Service Agreements

� Strategic Accounts focus

� Professional Services

FY2004 FY2010

5-year average annual growth rate

� Professional Services

Productivity Drivers

� Faster installs

� Remote diagnostics

� Continuous design enhancements

� Logistics, JIT parts delivery

X-Ray Products

X-Ray Tubes

Flat Panel Digital X-Ray Detectors

4343R

New X-ray Tube Opportunities to Support Digital Radiography

4336R Portable Enclosure

4336R

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

Tube and Panel Sales Growth by Yearm

illi

on

sm

illi

on

s

Annual Growth Rate 17% 13% 19% 9% 22%

World FPD Market – Wholesale Value

1,500,000

2,000,000

2,500,000

3,000,000

0

500,000

1,000,000

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

Proton Therapy

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

Market Potential: 4-5 new center launches/year

Source: PTCOG

Active Varian Projects

• APT/SPTC San Diego • Delivery Fall ‘11, 1st patient Mid ‘13• Space for VPT in facility• 2 projects to follow (UTSW,

University of MD)

• Holland PTC • Varian selected as preferred bidder• Gov’t reimbursement requested

• Skandion Kliniken • Currently in litigation

• RPTC Munich• Commissioning in process• Three rooms operational

• ULSS, Mestre• JDA signed• RFP Summer 2010, Decision

early 2011

• APT/Univ. of MD• Same project development

team as San Diego• Target opening 2014

20+ additional sites developing projects

• Kettering/ASHS• Two-room facility• Target opening 2013

• PSI, Zurich• Cyclotron clinical since

2/07

Security & Inspection Products

� Market leading provider of high-energy security imaging

� Components: Linear accelerators, detectors, software, service

� Systems: IntellX

� Customers include all major systems integrators

� Components: Rapiscan, Smiths, AS&E, several regional players

Systems: US Customs & Border Protection, Rapiscan� Systems: US Customs & Border Protection, Rapiscan

� End-users include customs and defense departments

� ~$80M annual business

� 15% annual growth opportunity

� Market drivers: Terrorism, Global instability

� 80% of VAR’s security business is ex-US

Varian Security and Inspection Strengths

� Fast, automated materials discrimination

� Material discrimination using dual energy– ability to identify material classes within containers quickly and reliably – organic, inorganic, metals, and high-density materials

� Recent expansion into mobile platforms

� Lower priced, compact, lighter sources to enable low cost, high performance, mobile platforms

� Varian’s R&D and infrastructure investments

� IP: more than 50 active imaging and security patents

� Global support and distribution network

Second Quarter 2011 Results

VMS OS XRP Other

Net Orders 682 15% 520 9% 124 18% 38 207%

Revenues 648 11% 508 9% 118 15% 23 20%

Gross Margin 45% 46% 40% 45%

R&D 44

SG&A 94

Op Earnings 151 23% ROS (+ 12%)

Interest Income -

EPS $0.86 (120M diluted shares)

Note: Dollars in millions, except per share amounts.

Q2 FY11 YTD Results

VMS OS XRP Other

Net Orders(1)

1,274 11% 979 7% 236 16% 59 74%

Revenues 1,228 9% 960 7% 229 19% 39 1%

Gross Margin 45% 46% 41% 41%

R&D 82

SG&A 185

Op Earnings 288 23% ROS (+ 13%)

Interest Income 0.1

EPS $1.66 (120M diluted shares)

Note:(1) Q2 FY10 YTD net orders for Total VMS and the Other segment excludes $62M for the cancellation of a proton therapy order.(2) Including the proton order cancellation in the year ago period,Q2 FY11 YTD net orders would be up 17% for Total VMS and

up 316% for the Other segment.(3) Dollars in millions, except per share amounts.

Net Orders and Revenues(Quarter ended 04/01/11)

600

620

640

660

680

700Q2 FY11

520

540

560

580

600

Q210 Q211

Orders Revenues

Net Orders and Revenues(FY11YTD ended 04/01/11)

1150

1200

1250

1300Q2 FY11 YTD

(1)

1050

1100

1150

Q210 YTD Q211 YTD

Orders Revenues

Operating Margin and Net Earnings(Quarter ended 04/01/11)

60

80

100

120

140

160Q2 FY11

0

20

40

60

Q210 Q211

Op Earnings Net Earnings

Operating Margin and Net Earnings(FY11YTD ended 04/01/11)

150

200

250

300

350Q2 FY11 YTD

0

50

100

150

Q210 YTD Q211 YTD

Op Earnings Net Earnings

Backlog $2,239M(As of 04/01/11)

1500

2000

2500

0

500

1000

FY 2008 FY 2009 FY 2010 FY 2011

Q1

Q2

Q3

Q4

Q2 FY11 Balance Sheet / Cash Flow

Conservative balance sheet

$584M cash and cash equivalents

$143M total debt

$1,316M stockholders’ equity

*DSO 79 days- up 3 days from year ago quarter- up 3 days from year ago quarter- up 1 day from prior quarter

Cash Flow$68M cash flow from operations$120M in net borrowings, primarily for the accelerated

share repurchase in Q211Spent $238M to repurchase 3.5M shares in Q211

*Days Sales Outstanding

Fiscal 2011 Outlook(As of end of Second Quarter, Fiscal 2011)

� Revenues growth estimated at ~ 10% to 11% for FY 2011

� EPS estimated at ~ $3.39 to $3.45 for FY 2011

� Tax Rate estimated at ~ 31% to 32% for FY 2011

� Revenues growth estimated at ~ 11% to 12% for Q3 FY 2011� Revenues growth estimated at ~ 11% to 12% for Q3 FY 2011

� EPS estimated at ~ $0.80 to $0.83 for Q3 FY 2011

� Tax Rate estimated at ~ 30% to 31% for Q3 FY 2011

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

The outlook is for Continuing Operations.