Randomized trial shows that IOERT, when used in combination with a radiation sensitizer, achieved a three-year survival of 23% versus 0% for those not receiving the sensitizer

Sunnyvale, California; November 15, 2006 - Inoperable pancreatic cancer is a devastating disease. More than half of the patients who contract this disease die within the year and nearly all succumb to the disease within three years. Until now, medical technology could offer little to these patients. Now, a randomized clinical trial shows that Intraoperative Electron-Beam Radiation Therapy or IOERT, the application of radiation therapy in the operating room during surgery, when used with a radiation sensitizing drug, may offer hope for this dread disease. This important, but little noticed study, was recently cited in a presentation given by Dr. Felipe Calvo during a refresher course on IOERT presented on November 7, 2006 at the Annual Meeting of the American Society of Therapeutic Radiation Oncology (ASTRO).

Dr. Katsuyuki Karasawa, chief of radiation oncology at the Tokyo Komagome Metropolitan Hospital in Tokyo, Japan, was the lead investigator on this landmark study. In the study, forty-five patients with inoperable pancreatic cancer and who received pancreatic by-pass surgery were randomized to receive either IOERT alone or IOERT with a radiation sensitizer. After surgery, all of the patients received external beam radiation therapy (EBRT). Of the patients that received IOERT plus the sensitizer, 23% were alive after three years, versus none for the group that received IOERT alone.

"These results are extremely encouraging for this very difficult-to-treat group of patients," said Dr. Karasawa. "It is not yet a cure for this disease, but for the first time patients with inoperable pancreatic cancer can be offered hope and a chance to extend their lives."

Dr. Joe Hsu, radiation oncologist at the University of California at San Francisco said, "The idea of combining chemotherapy and intraoperative radiotherapy has been presented at various international meetings, however this is the first clinical trial that proves this concept to be not only feasible but also has survival advantage. Similar combination of intra-operative radiotherapy and chemotherapy should be tested in other sites such as lung, abdomen and pelvis."

Donald A. Goer, president and CEO of IntraOp Medical Corporation which manufacturers Mobetron, the first OR-ready, fully mobile, self-shielding IOERT system, said, "These results are quite exciting, not only because of the survival benefits provided to these very difficult-to-treat patients, but because these results also demonstrate that radiation sensitizers can potentiate IOERT and make IOERT treatments even more effective. Many clinicians have long believed that radiation sensitizers are most effective when used with radiation given in a single dose, such as with IOERT. However, this is the first randomized clinical trial to demonstrate that it indeed works. IntraOp Medical, in addition to manufacturing and distributing Mobetron, also owns the rights to Etanidazole, an FDA approved Phase III radiation sensitizer. These results are encouraging for us as well."

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.