Intraop Medical Corporation Announces Financial Results for Quarter Ended March 31, 2005

[May 23, 2005]  Intraop Medical Corporation, manufacturer of the Mobetron, today filed Form 10-QSB with the Securities and Exchange Commission in which it reported financial results for the three and six months ended March 31, 2005. On March 9, 2005, the Company completed its merger with Intraop Medical, Inc., after which time the sole business of the Company became that of Intraop Medical, Inc.

For the six months ended March 31, 2005 revenue grew to $2.56 million from $0.28 million for the same period in the previous year. Net loss before interest expense for the six months ended March 31, 2005 increased to $2.36 million from $1.46 million for the same period in the previous fiscal year. Nonrecurring expenses associated with the completion of the merger contributed $1.67 million to the loss for the six months ended March 31, 2005. Net loss, including interest expense was $3.14 million for the six months ended March 31, 2005, ($0.19) per basic and diluted share, compared to $1.64 million, ($0.12) per basic and diluted share for the same period in the previous fiscal year.

“With the merger now behind us,” commented Donald Goer, President and Chief Executive Officer of the Company, “we can focus our efforts on Mobetron production and expanding our installed base of Mobetron systems. We expect Mobetron shipments to resume in the third quarter and that sales should be strong for the balance of the year. We are headed to the best performance in our history.”