SUNNYVALE CA -- (BUSINESS WIRE) May 10, 2006 -- Intraop Medical Corporation (OTCBB: IOPM), manufacturer and developer of the Mobetron®, an innovative device used to deliver intraoperative radiation therapy (IORT) during cancer surgery, today issued its second quarter financial results for the period ended March 31, 2006. Donald A. Goer, Ph.D., President and CEO of Intraop, said: "This quarter continues our transition from a research and development company to a manufacturing company. We are now settled into our new manufacturing facility, and expect to ship the first unit tested from that facility in our third quarter. We are adding sales, service and technical staff to support our production ramp-up. We are putting in place the infrastructure needed to be successful, and feel confident we will achieve the targets we have set for ourselves for this year."

Dr. Goer also noted the following highlights for the quarter:

• Sale of the Company's third Mobetron system in Italy and its fifteenth Mobetron system overall.
• Publication of a pooled-analysis of 1,018 patients by the International Society of IORT-Europe documenting the advantages of IORT in improving the results of early stage breast cancer treatment.
• Publication of a study of 651 advanced colorectal patients by the International Society of IORT-Europe that showed marked improvement in survival and tumor control results for patients treated with IORT.
• The filing of a registration statement for 10,000,000 shares of the Company's common stock.

The Company recorded revenues of $1.1 million, an operating loss of $714 thousand and a net loss of $1.8 million for the quarter. For the first half of the year, the revenues were $2.2 million, with an operating loss of $1.3 million and a net loss of $3.3 million.

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.