U.S. Government Purchases CyberKnife(R) System for Houston VA Hospital

October 24, 2007 at 8:34 AM EDT

First Government Contract Allows Greater Access to the Benefits of Radiosurgery

SUNNYVALE, Calif., Oct. 24 /PRNewswire-FirstCall/ -- Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today that the U.S. Government has purchased a CyberKnife(R) Robotic Radiosurgery Systems for the Michael E. DeBakey VA Medical Center in Houston, Texas. The system will be focused on the treatment of extracranial tumors, including lung and prostate.

"We are very excited about this milestone contract and the expanded patient access that such an integrated healthcare organization will provide," said Euan S. Thomson, Ph.D., president and CEO of Accuray Incorporated. "The CyberKnife System is quickly becoming a treatment modality of choice amongst leading medical institutions, and we look forward to future government purchases in both the United States and worldwide."

The Department of Veterans Affairs operates the largest direct health care delivery system in the country, providing care at more than 800 locations. About a quarter of the nation's population -- approximately 70 million people -- are potentially eligible for VA benefits and services because they are veterans, family members or survivors of veterans.

At the end of fiscal year 2007, there were 70 CyberKnife Systems installed in U.S. hospitals and medical centers, in addition to the 39 installed worldwide. There are eight CyberKnife Systems currently installed in the state of Texas, but this contract marks the first system for installation in Houston.

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.

Safe Harbor Statement

The foregoing may contain certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with the medical device industry. Except for the historical information contained herein, the matters set forth in this press release regarding procedure growth and market acceptance, 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: market acceptance of products; competing products, the combination of our products with complementary technology; and other risks detailed from time to time under the heading "Risk Factors" in our report on Form 10-K for the fiscal year ended June 30, 2007 and may be updated from time to time by our other filings with the Securities and Exchange Commission. The Company's actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors. 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
10/24/2007
CONTACT: Susan Lehman of Rockpoint Public Relations, +1-510-832-6006,
susan@rockpointpr.com, for Accuray Incorporated; or Stephanie Tomei, Accuray
Public Relations Manager, +1-408-789-4234, stomei@accuray.com
Web site: http://www.accuray.com