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New Device Increases Survival Rates of Women With Advanced Rectal Cancer By Providing Radiation During Surgery

SUNNYVALE, Calif. February 28th, 2006. Colorectal cancer is widely considered a man's disease, but actually affects an equal number of women and men. Detected early, it is highly curable in both genders, with survival rates approaching 90 percent. But if the cancer is detected at a more advanced stage, the outlook is often dismal.

The good news is that an FDA-approved mobile electron-beam system known as the Mobetron, developed by Intraop Medical Corporation of Sunnyvale, Calif., has proven clinically successful in extending survival rates and reducing tumor recurrence rates in patients with advanced rectal cancer.

The Mobetron delivers radiation directly to the tumor bed as part of colorectal cancer surgery. This is the ideal time to radiologically cleanse the area of any errant cancer cells that might have escaped removal. This technique is known as intraoperative electron radiation therapy, or IOERT. About 130,000 new cases of colorectal cancer are diagnosed annually in the U.S. with more than 56,000 deaths each year, according to American Cancer Society statistics. This makes colorectal cancer the third most common cancer in the U.S.

In the recent European clinical study, 651 women and men with locally advanced rectal cancer received IOERT as part of their treatment. These patients showed substantial improvement in survival rates and tumor recurrences over those who did not.

After standard treatment for advanced rectal cancer, which consists of surgery, chemotherapy and radiation, about 25% of patients are expected to survive five years, and 50% of these patients have tumor recurrences that require additional surgery, treatment and hospitalization. In the recent European study, however, patients treated with IOERT in addition to the standard treatments showed five-year survival rates of 67%, 10-year survival rates of 46%, and five- and 10-year tumor-control rates of 88% and 86%, respectively.

Dr. Harm Rutten, Chief of Surgery at Catharina Zeikenhuis in Eindhoven, Holland, the principal investigator of the study, commented: "These results are truly exceptional. As a surgeon who treats many patients with this advanced disease, it is gratifying to have a tool that can help these patients and save their lives."

This extensive study of patients with locally advanced rectal cancer was conducted by four major European referral centers, all members of the International Society of IOERT-Europe (ISIORT-Europe). It is the largest such study ever reported in medical literature, as well as the largest ever that involved intraoperative radiation therapy.

"With clear evidence of such dramatic tumor control with IOERT, this is a most important study," agrees Dr. Donald A. Goer, President and CEO of Intraop. "These results," he adds, "represent a triple-win: a win for the patients, a win for their doctors, and a major win for cost-effective healthcare. This study strengthens the evidence that IOERT and the Mobetron present a major advance in cancer treatments for both women and men."

About Intraop

IntraOp Medical Corporation provides innovative technology solutions for the treatment and eradication of cancer. Founded in 1993, IntraOp is committed to providing the tools doctors need to administer intraoperative radiation therapy safely and effectively - for all cancer patients. The company's flagship product, Mobetron, is the first fully portable, self-shielding intraoperative electron radiation therapy device designed for use in any operating room. Key Mobetron benefits include: increased survival rates, better local tumor control, shorter treatment cycles, and fewer side effects. Leading hospitals, from university research centers to specialized cancer clinics in North America, Europe and Asia, use Mobetron as a vital part of their comprehensive cancer program.

Forward-looking Statements

This press release may contain "forward-looking statements" within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. Actual results could differ materially, as the result of such factors as competition in the markets for the company's products and services and the ability of the Company to execute its plans. By making these forward-looking statements, the Company can give no assurances that transactions described in this press release will be successfully completed, and undertakes no obligation to update these statements for revisions or changes after the date of this press release.