Varian announces joint venture with Mitsubishi Electric in Japan

Varian Medical Systems Inc. will pilot a joint venture with Mitsubishi Electronic Corp. of Tokyo, which is expected to contribute $10 million to $12 million in additional annual service revenue to the Palo Alto, Calif.-based company.

 Varian will sell its line of radiotherapy products and Mitsubishi's medical linear accelerators and provide service and support. Mitsubishi linear accelerators will be sold through the venture during the first two years of the agreement.

 The arrangement covers all Mitsubishi's service and support activities for an installed base of approximately 500 medical and industrial linear accelerators in Japan and other Asian countries. The company will transfer 60 service, engineering, sales and management personnel to the joint venture.

 The agreement will commence in January 2004.

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