Palo Alto, CA, 24 January 2007:  Varian, Inc. (NasdaqGS: VARI) today reported that revenues for the first quarter of fiscal year 2007 increased 11.3% from the first quarter of fiscal year 2006, with double-digit sales growth for both industrial and life science applications. Demand was particularly strong within Europe and Asia Pacific, which more than offset softness in North America. Revenues were $217.9 million in the first quarter of fiscal year 2007, compared to $195.7 million in the first quarter of fiscal year 2006.

Non-GAAP (adjusted) net earnings for the first quarter of fiscal year 2007 increased 34.3% to $18.9 million, or $0.61 diluted earnings per share, compared to $14.1 million, or $0.44 diluted earnings per share, in the first quarter of fiscal year 2006. On a GAAP basis, net earnings in the first quarter of fiscal year 2007 were $15.4 million, or $0.49 diluted earnings per share, compared to $9.7 million, or $0.30 diluted earnings per share, in the first quarter of fiscal year 2006.

Adjusted operating earnings increased 34.5% to $28.4 million in the first quarter of fiscal year 2007, compared to $21.1 million in the first quarter last year. Adjusted operating profit margin was 13.0% in the first quarter of fiscal year 2007, compared to 10.8% in the prior-year quarter. The improvements in adjusted operating earnings and adjusted operating profit margin were primarily the result of a mix shift toward higher-margin products, the transition to internally sourced magnets for magnetic resonance products and sales volume leverage. On a GAAP basis, operating earnings were $22.9 million and operating profit margin was 10.5% in the first quarter of fiscal year 2007, compared to $14.7 million and 7.5%, respectively, in the same quarter a year ago.

"Our strategy continues to work and resulted in another quarter of strong growth in revenues and profitability," commented Garry W. Rogerson, President and CEO. "Demand in most markets continues to be robust and our newer products are gaining traction. The strength and breadth of our product lines and of our sales and support organization position us to deliver another record year."

For a complete reconciliation of non-GAAP (adjusted) financial information used in this press release to the most directly comparable GAAP financial information, please refer to the attached Reconciliations of GAAP to Adjusted Results, Actual.

Results by Segment

Scientific Instruments revenues for the first quarter of fiscal year 2007 were $176.9 million, representing an increase of 9.7% over revenues of $161.3 million in the first quarter of the prior fiscal year. Adjusted operating profit margin was 12.7% in the first quarter of fiscal year 2007, compared to 11.2% in the prior-year quarter. On a GAAP basis, operating profit margin was 10.7% in the first quarter of fiscal year 2007, compared to 7.8% in the same quarter a year ago.

Vacuum Technologies revenues increased 19.2% to $41.1 million in the first quarter of fiscal year 2007, compared to $34.4 million in the first quarter of fiscal year 2006. Adjusted operating profit margin was 22.2% in the first quarter of fiscal year 2007, compared to 18.5% in the first quarter of the prior fiscal year. On a GAAP basis, operating profit margin was 20.4% in the first quarter of fiscal year 2007, compared to 17.7% in the prior-year quarter.

For the combined segments, adjusted operating profit margin before unallocated corporate costs was 14.5% in the first quarter of fiscal year 2007, compared to 12.5% in the prior-year quarter. On a GAAP basis, operating profit margin before unallocated corporate costs was 12.5% in the first quarter of fiscal year 2007, compared to 9.6% in the first quarter of fiscal year 2006.

Conference Call

Varian, Inc. will be holding a conference call later today, January 24, 2007, at 2:00 p.m. Pacific time. The call may be heard via the Internet by going to www.varianinc.com, clicking on the Investors link at the bottom of the right side of the page, and then clicking on the Live Webcast link.

Non-GAAP (Adjusted) Financial Measures

This press release includes non-GAAP (adjusted) financial measures for cost of sales, selling, general and administrative expenses, research and development expenses, purchased in-process research and development, operating earnings, operating profit margins, income tax expense, net earnings and diluted earnings per share. These non-GAAP financial measures exclude share- based compensation expense, acquisition-related intangible and inventory write-up amortization and in-process research and development charges and restructuring and other related costs. Reconciliations of each of these non- GAAP financial measures to the most directly comparable financial measures are detailed in the Reconciliations of GAAP to Adjusted Results attached to this press release. We believe that presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations.

We believe that excluding acquisition-related intangible and inventory write-up amortization and in-process research and development charges provides supplemental information and an alternative presentation useful to investors' understanding of the company's core operating results and trends. In addition, investors have indicated to us that they analyze the benefits of acquisitions based on the cash return on the investment made, and thus consider financial measures excluding acquisition-related intangible and inventory write-up amortization and in-process research and development charges as important, useful information.

We similarly believe that excluding share-based compensation expense and restructuring and other related costs (principally related to facility closures and employee terminations to improve operational efficiency) provides supplemental information and an alternative presentation useful to investors' understanding of the company's core operating results and trends, especially when comparing those results on a consistent basis to results for previous periods and anticipated results for future periods. Investors have indicated that they consider financial measures of our results of operations excluding share-based compensation expense and restructuring and other related costs as important supplemental information useful to their understanding of our historical results and estimating of our future results.

We also believe that, in excluding share-based compensation expense, acquisition-related intangible and inventory write-up amortization and in- process research and development charges and restructuring and other related costs, our non-GAAP financial measures provide investors with transparency into what is used by management to measure and forecast our results of operations, to compare on a consistent basis our results of operations for the current period to that of prior periods, to compare our results of operations on a more consistent basis against that of other companies, in making financial and operating decisions and to establish certain management compensation.

Although we believe, for the foregoing reasons, that our presentation of non-GAAP financial measures provides useful supplemental information to investors regarding our results of operations, our non-GAAP financial measures should only be considered in addition to, and not as a substitute for or superior to, our financial measures prepared in accordance with GAAP.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on management's current expectations, are not guarantees of future performance, and involve certain risks and uncertainties that could cause the company's actual results to differ materially from management's current expectations and the forward-looking statements made in this press release. Those risks and uncertainties include, but are not limited to, the following: whether we will succeed in new product development, commercialization, performance and acceptance; whether we can achieve continued growth in sales for both life science and industrial applications; risks arising from the timing of shipments, installations and the recognition of revenues on fourier- transform mass spectrometers (FTMS) and certain magnetic resonance (MR) products, including nuclear magnetic resonance (NMR) and MR imaging systems and superconducting magnets; the impact of shifting product mix on profit margins; competitive products and pricing; economic conditions in the company's product and geographic markets; whether we will see continued and timely delivery of key raw materials and components by suppliers; foreign currency fluctuations that could adversely impact revenue growth and earnings; whether we will see sustained or improved market investment in capital equipment; whether we will see reduced demand from customers that operate in cyclical industries; the impact of any delay or reduction in government funding for research; our ability to successfully evaluate, negotiate and integrate acquisitions; the actual costs, timing and benefits of restructuring and other efficiency improvement activities; the timing and amount of discreet tax events; the timing and amount of share-based compensation; and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. We disclaim any intent or obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise.

About Varian, Inc.

Varian, Inc. is a leading worldwide supplier of scientific instruments and vacuum technologies for life science and industrial applications. The company provides complete solutions, including instruments, vacuum components, laboratory consumable supplies, software, training and support through its global distribution and support systems. Varian, Inc. employs approximately 3,700 people and operates manufacturing facilities in 13 locations in North America, Europe and Asia Pacific. Varian, Inc. had fiscal year 2006 sales of $835 million, and its common stock is traded on the NASDAQ Global Select Market under the symbol, "VARI." Further information is available on the company's Web site: www.varianinc.com.