Accuray Board Approves Stock Repurchase Plan

SUNNYVALE, Calif., Aug. 30 /PRNewswire-FirstCall/ -- Accuray Incorporated (Nasdaq: ARAY), today announced that its Board of Directors has approved a plan that authorizes the Company to repurchase shares of its common stock. Under the plan, the Company will have the ability to acquire up to $25 million of common shares in the open market over a period of one year. Accuray currently has 53.8 million shares outstanding.

"Accuray is proud of the successes achieved in fiscal year 2007 and believes that the Company's common stock is currently undervalued, representing a strategic and sound investment at its current trading prices," said Euan S. Thomson, Ph.D., president and chief executive officer of Accuray Incorporated. "As a result of our positive momentum as demonstrated by record revenue, fourth quarter profitability and record backlog, we are confident in the future of Accuray and believe the use of cash in this repurchase program to be in the best interest of the Company and its shareholders."

Accuray is experiencing substantial growth as demonstrated by a number of significant milestones in fiscal year 2007 including:

-- Fiscal year revenue at record high with a growth of 166 percent over total revenue in fiscal year 2006
-- Quarterly revenue at record high of $44 million
-- Profitability achieved in fourth quarter fiscal year 2007 marking first profitable quarter as a public company
-- Extracranial treatments with the CyberKnife System increasing 75 percent worldwide during fiscal year 2007, with U.S. lung and prostate treatments doubling and quadrupling respectively since the end of fiscal year 2006

These repurchases would be made in compliance with the Securities and Exchange Commission's Rule 10b-18, subject to market conditions, applicable legal requirements and other factors. This plan does not obligate Accuray to acquire any particular amount of common stock and the plan may be suspended at any time at the Company's discretion.

About the CyberKnife(R) Robotic Radiosurgery System

The CyberKnife Robotic Radiosurgery System is the world's only robotic radiosurgery system cleared by the FDA to treat tumors anywhere in the body non-invasively and with sub-millimeter accuracy. Using continual image guidance technology and computer controlled robotic mobility, the CyberKnife System automatically tracks, detects and corrects for tumor and patient movement in real-time throughout the treatment. This enables the CyberKnife System to deliver precise, high-dose radiation, minimizing damage to surrounding healthy tissue and eliminating the need for invasive head or body stabilization frames.

About Accuray

Accuray Incorporated (Nasdaq: ARAY), based in Sunnyvale, Calif., is a global leader in the field of radiosurgery dedicated to providing an improved quality of life and a non-surgical treatment option for those diagnosed with cancer. Accuray develops and markets the CyberKnife Robotic Radiosurgery System, which extends the benefits of radiosurgery to include extracranial tumors, including those in the spine, lung, prostate, liver and pancreas. To date, the CyberKnife System has been used to treat more than 35,000 patients worldwide and currently more than 100 systems have been installed in leading hospitals in the Americas, Europe and Asia. For more information, please visit http://www.accuray.com.

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including statements as to realization of backlog, procedure growth and market acceptance, product development, clinical studies, regulatory review and approval, and commercialization of products, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. You should not put undue reliance on any forward-looking statements. Important factors that could cause actual performance and results to differ materially from the forward-looking statements we make include: fluctuations in results of operations; reimbursement for the CyberKnife procedure; market acceptance of our products; government approvals of our products; intellectual property protection for our products; competing products; funding requirements; and other risks detailed from time to time under the heading "Risk Factors" in our report on Form 10-Q for the quarterly period ended March 30, 2007 as may be updated from time to time by our other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, our actual performance or results may vary materially from any future performance or results expressed or implied by these forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws.

SOURCE Accuray Incorporated
08/30/2007
CONTACT: investor contact, Tom Rathjen, Vice President, Investor
Relations, +1-408-789-4458, trathjen@accuray.com, or media contact,
Stephanie Tomei, Public Relations Manager, +1-408-789-4234,
stomei@accuray.com, both of Accuray
Web site: http://www.accuray.com