VARIAN MEDICAL SYSTEMS, INC. — 2013 ANNUAL REPORT business accounted for nearly one third of our Oncology orders for the year. We have expanded our  service offerings and find that more Varian customers with our sophisticated TrueBeam and Edge  platforms are utilizing our services to get the most out of these platforms for their patients. We also  intend to add service capabilities in our Varian Particle Therapy business and in our X-Ray Products  business. Our tubes and panels together with software workstations give Varian the opportunity to  supply and service a complete image processing chain within our customers’ X-ray equipment. With more than 3,300 Eclipse™ treatment planning sites and 3,000 ARIA® oncology information  management sites worldwide and some $575 million in annual revenue from licenses and service  agreements, Varian is a leading supplier of software for oncology. At the ASTRO show in Atlanta we  unveiled RapidPlan™ knowledge-based treatment planning software to optimize the speed, consistency  and quality of radiation oncology treatment planning. We believe RapidPlan can do for treatment  planning what RapidArc® did for treatment delivery. During the year, we established the Oncology  Continuum Solutions team to address a $2.3 billion market opportunity by capitalizing on newly  generated digital data and on the need for greater cancer care analytics. LETTER CONTINUES ON P.11 SERVICE AND SOFTWARE ARE KEY GROWTH DRIVERS FOR ONCOLOGY SYSTEMS. OUR $800 MILLION SERVICE Varian’s SmartConnect solution links the company’s service  engineers with customers at cancer treatment centers in  real time. Recently, a clinician who had a patient awaiting  treatment called when their system wouldn’t allow the  treatment to begin. Varian’s service engineer was able to  remotely connect to the control console and quickly saw an  incorrect setting. It was fixed and the treatment proceeded  as planned. This is one way Varian is a partner for life  with customers. P.08 SERVICE AND SOFTWARE BUSINESS $ 1.1B 15 % 36 % LETTER CONTINUED FROM P.07 Service and Software CAGR IN SERVICE REVENUES SINCE 2008 OF ONCOLOGY REVENUES RECURRING