Exhibit 99.1


Varian Medical Systems and Mitsubishi Electric Corp. Agree to Form
Joint Venture in Japan

    PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 8, 2003--Varian Medical
Systems (NYSE:VAR) and Mitsubishi Electric Corp. today announced that
they have signed a letter of intent to enter a joint venture that will
provide radiotherapy equipment and service in Japan and other Asian
countries. Mitsubishi Electric Corp.'s radiotherapy service business
will be transferred to the joint venture.
    The joint venture, to be headquartered in Japan, is expected to
start in January of 2004, and will sell Varian Medical Systems' full
line of radiotherapy products and Mitsubishi Electric Corp.'s medical
linear accelerators. It will also service and support those products
including Mitsubishi industrial linear accelerators. The Mitsubishi
medical linear accelerators will be sold through the venture during
the first two years of the arrangement.
    Varian Medical Systems, the majority owner of the venture, will
acquire Mitsubishi Electric Corp.'s share of the venture at the end of
the three-year arrangement. The joint venture is expected to
contribute $10 million to $12 million in additional annual service
revenue to Varian Medical Systems and be neutral to earnings in the
first year and accretive in ensuing years. Financial terms of the
transaction will be disclosed when the transaction is concluded.
    The arrangement covers all Mitsubishi Electric Corp.'s service and
support activities for an installed base of approximately 500 medical
and industrial linear accelerators in Japan and other countries mainly
in Asia. Mitsubishi Electric Corp. and Mitsubishi Electric Systems &
Service Co., Ltd, wholly owned subsidiary of Mitsubishi Electric
Corp., will transfer approximately 60 service, engineering, sales and
management personnel out of its current workforce on secondment to the
joint venture, which will operate within existing Varian facilities
around Japan.
    "We will continue a high level of service and support for all of
this venture's customers," said Soutaro Shinohara who will be managing
director for the joint venture.
    "Customers and employees will benefit from this new venture, which
combines the expertise of both companies to more effectively meet the
needs of radiotherapy markets in Japan and Asia," said Dick Levy,
Chairman and CEO of Varian Medical Systems. "Customers who are
equipped by both Varian Medical Systems and Mitsubishi Electric Corp.
will be able to obtain all the service and products they need from a
single source."
    The companies expect to conclude the transaction in December.

                                # # #

    About Varian Medical Systems

    Varian Medical Systems, (NYSE:VAR) of Palo Alto, California is the
world's leading manufacturer of integrated cancer therapy systems,
which are used to treat thousands of patients per day. The company is
also a premier supplier of X-ray tubes and flat-panel digital
subsystems for imaging in medical, scientific, and industrial
applications. Varian Medical Systems employs approximately 2,900
people who are located at manufacturing sites in North America and
Europe and in its 40 sales and support offices around the world. In
its most recent fiscal year ended September 27, 2002, Varian Medical
Systems reported sales of $873 million. Additional information is
available on the company's investor relations web site at
www.varian.com.

    About Mitsubishi Electric

    With over 80 years of experience in providing reliable,
high-quality products to both corporate clients and general consumers
all over the world, Mitsubishi Electric Corporation (TSE:6503) is a
recognized world leader in the manufacture, marketing and sales of
electrical and electronic equipment used in information processing and
communications, space development and satellite communications,
consumer electronics, industrial technology, energy, transportation
and building equipment. The company has operations in 35 countries and
recorded consolidated group sales of 3,639 billion yen (US$30.3
billion) in the year ended March 31, 2003. For more information, visit
http://global.mitsubishielectric.com.

    Forward Looking Statements

    Except for historical information, this news release contains
"forward-looking" statements within the meaning of U.S. securities
laws. Statements concerning industry outlook, including market
acceptance of or transition to new ventures and any statements using
the terms "will," "expect," or similar statements are forward-looking
statements that involve risks and uncertainties that could cause
actual results to differ materially from those anticipated. Such risks
and uncertainties include failure to complete and establish the joint
venture; acceptance of this joint venture by Japanese customers;
successful integration of both parties' personnel, products and
infrastructures into the joint venture; demand for Varian Medical
Systems' ("Varian") and the joint venture's products and services; the
impact of competitive products and pricing; and the other risks listed
from time to time in Varian's filings with the U.S. Securities and
Exchange Commission. Varian assumes no obligation to update or revise
the forward-looking statements in this release because of new
information, future events, or otherwise.

    CONTACT: Varian Medical Systems
             Spencer Sias, 650-424-5782 (Media)
             spencer.sias@varian.com
             Soutaro Shinohara, 81-3-3639-9700 (Business)
             soutaro.shinohara@jp.varian.com
               or
             Mitsubishi Electric Corp.
             Frank K. Hashimoto, 81-3-3218-2346 (Media)
             Katsuyuki.Hashimoto@hq.melco.co.jp
             Tsunetoshi Tanaka, 81-3-3218-3571 (Business)
             Tsunetoshi.Tanaka@hq.melco.co.jp