Exhibit 99.1

For Information Contact:

Investor Relations

Varian, Inc.

650.424.5471

ir@varianinc.com

VARIAN, INC. REPORTS THIRD QUARTER 2008 RESULTS

• Sales Up 8%

• Non-GAAP Operating Earnings Down 6%, GAAP Operating Earnings Down 16%

• Non-GAAP Diluted EPS Down 2%, GAAP Diluted EPS Down 19%

PALO ALTO, Calif. — Varian, Inc. (NasdaqGS: VARI) today reported third fiscal quarter 2008 revenues of $244.4 million, representing an increase of 7.6% over revenues of $227.1 million in the third quarter of fiscal year 2007. Sales grew for both industrial (which includes environmental, food and energy) and life science applications. The company continued to experience solid sales growth in Europe, Asia Pacific and Latin America, while sales in North America remained essentially flat.

Non-GAAP (adjusted) net earnings for the third quarter of fiscal year 2008 decreased 6.7% to $17.7 million, or $0.60 diluted earnings per share, compared to $19.0 million, or $0.61 diluted earnings per share, in the third quarter of fiscal year 2007. On a GAAP basis, net earnings in the third quarter of fiscal year 2008 were $11.4 million, or $0.38 diluted earnings per share, compared to $14.6 million, or $0.47 diluted earnings per share, in the third quarter of fiscal year 2007.

Adjusted operating earnings decreased 6.0% to $25.9 million in the third quarter of fiscal year 2008, compared to $27.5 million in the third quarter last year. Adjusted operating profit margin was 10.6% in the third quarter of fiscal year 2008, compared to 12.1% in the prior-year quarter. On a GAAP basis, operating earnings were $17.4 million and operating profit margin was 7.1% in the third quarter of fiscal year 2008, compared to $20.7 million and 9.1% in the same quarter a year ago.

Although the company started the quarter with a strong backlog and then experienced solid orders, revenues were $11 million to $13 million lower than the company expected, which significantly impacted earnings and operating margins. The revenue shortfall was primarily due to delayed deliveries and installations of a few large systems and delayed shipments resulting from transitioning manufacturing locations for certain products. Were it not for these delays, the company would have achieved its revenue objective for the quarter.

The revenue shortfall was the most significant factor contributing to the company’s lower than expected earnings and operating margins. Margins were also negatively impacted in the quarter by higher transition costs related to relocating the manufacturing activities described above, the continued weakening of the U.S. dollar, which was favorable to revenue but unfavorable to operating margins, and to a lesser extent the transition effect of acquisitions completed in the quarter.

“During the third quarter, the company experienced an unusual confluence of events which impacted revenues, and as a result our profitability. Most significantly, we experienced delivery and installation delays on several large systems,” said Garry W. Rogerson, President and Chief Executive Officer. “We made progress in our efforts to consolidate factories and to transition manufacturing to lower cost locations or outsourcing partners. Although these initiatives are having a short-term negative impact on revenues and margins, we continue to believe they are critical to achieving our long-term strategic goals.”

“The company generated almost $30 million in cash flow from operations in the quarter,” said Rogerson. “Our ability to generate substantial cash flow demonstrates the continued fundamental strength of our business.”

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 and Projected.

Results by Segment

Scientific Instruments revenues for the third quarter of fiscal year 2008 were $200.7 million, representing an increase of 7.3% over revenues of $187.0 million in the third quarter of the prior fiscal year. Adjusted operating profit margin was 9.6% in the third quarter of fiscal year 2008 compared to 12.2% in the third quarter of the prior fiscal year. On a GAAP basis, operating profit margin was 6.1% in the third quarter of fiscal year 2008, compared to 9.3% in the same quarter a year ago. The decrease in operating profit margins was primarily the result of the factors described above.

Vacuum Technologies revenues increased 9.0% to $43.7 million in the third quarter of fiscal year 2008, compared to $40.1 million in the third quarter of fiscal year 2007. Adjusted operating profit margin was 18.3% in the third quarter of fiscal year 2008, compared to 19.8% in the third quarter of the prior fiscal year. On a GAAP basis, operating profit margin was 17.7% in the third quarter of fiscal year 2008, compared to 19.5% in the prior-year quarter. The decrease in operating profit margins was primarily the result of the continued weakening of the U.S. dollar.

Outlook

“We remain pleased with the continuing customer demand for our products. We’re also making progress toward our long-term goals with respect to our manufacturing strategy, although we expect the initiatives underway in this area to have some residual negative impact on revenue and profitability in the fourth quarter,” said Rogerson. “As we look to fiscal 2009, we remain encouraged by the momentum of our new products in our focused applications of environmental, energy and pharmaceutical, and the expected benefits of our manufacturing strategy.”

Varian, Inc. revised its guidance for fiscal year 2008. Adjusted diluted earnings per share are now expected to be $2.74 plus or minus $0.05 for fiscal year 2008, compared to prior guidance of $2.84 to $2.98. On a GAAP basis, diluted earnings per share are expected to be $2.05 plus or minus $0.09 for fiscal year 2008, compared to prior guidance of $2.23 to $2.41.

The company’s GAAP diluted earnings per share for the full fiscal year 2008 are expected to include the following items:

— Share-based compensation expense of approximately $0.23,

— An acquisition-related in-process research and development charge of $0.05,

— Acquisition-related intangible amortization of approximately $0.18 to $0.20,

— Acquisition-related inventory write-up amortization of approximately $0.03 to $0.05 related to the acquisitions of IonSpec, the Analogix business and Oxford Diffraction,

— Impairment of a private company equity investment of $0.06, and

— Restructuring and other related costs of approximately $0.10 to $0.14.

Webcast Conference Call

Varian, Inc. will be providing a live webcast (in listen-only mode) of its investor conference call to review its third quarter results later today, July 23, 2008, at 2:00 p.m. Pacific time. The call may be heard via the Internet by going to http://www.varianinc.com and clicking on the Live Webcast link at the top of the right side of the page.

Non-GAAP (Adjusted) Financial Measures

This press release includes non-GAAP (which we refer to as “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, impairment of private company equity investments, income tax expense, net earnings and diluted earnings per share. These non-GAAP financial measures exclude share-based compensation expense, impairment of private company equity investments, 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 GAAP 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, restructuring and other related costs (principally related to facility closures and employee terminations to improve operational efficiency), and impairment of private company equity investments 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, restructuring and other related costs, and impairment of private company equity investments 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, restructuring and other related costs, and impairment of private company equity investments, 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 industrial and/or life science applications; whether we can achieve continued sales growth in Europe and Asia Pacific and/or stronger growth in sales in the U.S.; risks arising from the timing of shipments, installations and the recognition of revenue on certain research products, including nuclear magnetic resonance (NMR), magnetic resonance (MR) imaging and fourier-transform mass spectrometer (FTMS) 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 continued investment in capital equipment, in particular given global liquidity and credit concerns; 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 activities (such as our Northern California facility consolidation) and other efficiency improvement activities (such as our global procurement and outsourcing initiatives); the timing and amount of discrete 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 undertake no special obligation to update 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 products, laboratory consumable supplies, software, training and support through its global distribution and support systems. Varian, Inc. employs approximately 4,000 people worldwide and operates manufacturing facilities in North America, Europe and Asia Pacific. Varian, Inc. had fiscal year 2007 sales of $921 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: http://www.varianinc.com.

VARIAN, INC. AND SUBSIDIARY COMPANIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

(In thousands, except per share amounts)

Third Quarter FY 2008 and Third Quarter FY 2007

	Fiscal Quarter Ended
	June 27, 2008			June 29, 2007
Sales	$	244,449		$	227,095
Cost of sales		138,266	(1)		125,176	(8)
Gross profit		106,183			101,919
Operating expenses
Selling, general and administrative		68,797	(2)		64,366	(9)
Research and development		18,519	(3)		16,879	(10)
Purchased in-process research and development		1,488	(4)		—
Total operating expenses		88,804			81,245
Operating earnings		17,379	(5)		20,674	(11)
Interest income		1,200			1,622
Interest expense		(390	)		(454	)
Earnings before income taxes		18,189			21,842
Income tax expense		6,823	(6)		7,291	(12)
Net earnings	$	11,366	(7)	$	14,551	(13)
Net earnings per diluted share	$	0.38	(7)	$	0.47	(13)
Diluted shares outstanding		29,728			30,983

NON-GAAP (ADJUSTED) FINANCIAL MEASURES (see also attached reconciliations of GAAP to Adjusted results for each of these measures):

(1) $135,025 on an adjusted basis excluding $1,978 in acquisition-related intangible amortization, $646 in acquisition-related inventory write-up amortization, $525 in restructuring and other related costs and $92 in share-based compensation expense.

(2) $65,378 on an adjusted basis excluding $399 in acquisition-related intangible amortization, $904 in restructuring and other related costs and $2,116 in share-based compensation expense.

(3) $18,165 on an adjusted basis excluding $258 in restructuring and other related costs and $96 in share-based compensation expense.

(4) $0 on an adjusted basis excluding $1,488 related to an acquisition-related in-process research and development charge.

(5) $25,881 on an adjusted basis excluding the adjustments described in items (1) – (4) above.

(6) $8,987 on an adjusted basis excluding the tax impact of the adjustments described in items (1) – (3) above.

(7) $17,704 and $0.60 per diluted share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (1) – (4) above.

(8) $123,075 on an adjusted basis excluding $1,306 in acquisition-related intangible amortization, $700 in restructuring and other related costs and $95 in share-based compensation expense.

(9) $60,033 on an adjusted basis excluding $506 in acquisition-related intangible amortization, $1,919 in restructuring and other related costs and $1,908 in share-based compensation expense.

(10) $16,466 on an adjusted basis excluding $287 in restructuring and other related costs and $126 in share-based compensation expense.

(11) $27,521 on an adjusted basis excluding the adjustments described in items (8) – (10) above.

(12) $9,721 on an adjusted basis excluding the tax impact of the adjustments described in items (8) – (10) above.

(13) $18,968 and $0.61 per diluted share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (8) – (10) above.

VARIAN, INC. AND SUBSIDIARY COMPANIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

(In thousands, except per share amounts)

First Nine Months FY 2008 and First Nine Months FY 2007

	Nine Months Ended
	June 27, 2008			June 29, 2007
Sales	$	730,045		$	674,963
Cost of sales		403,684	(1)		367,850	(9)
Gross profit		326,361			307,113
Operating expenses
Selling, general and administrative		202,380	(2)		190,822	(10)
Research and development		53,889	(3)		48,592	(11)
Purchased in-process research and development		1,488	(4)		—
Total operating expenses		257,757			239,414
Operating earnings		68,604	(5)		67,699	(12)
Impairment of private company equity investment		(3,018	)(6)		—
Interest income		4,888			4,259
Interest expense		(1,274	)		(1,444	)
Earnings before income taxes		69,200			70,514
Income tax expense		24,463	(7)		24,326	(13)
Net earnings	$	44,737	(8)	$	46,188	(14)
Net earnings per diluted share	$	1.48	(8)	$	1.49	(14)
Diluted shares outstanding		30,309			31,028

NON-GAAP (ADJUSTED) FINANCIAL MEASURES (see also attached reconciliations of GAAP to Adjusted results for each of these measures):

(1) $396,096 on an adjusted basis excluding $4,884 in acquisition-related intangible amortization, $1,236 in acquisition-related inventory write-up amortization, $1,175 in restructuring and other related costs and $293 in share-based compensation expense.

(2) $192,472 on an adjusted basis excluding $1,239 in acquisition-related intangible amortization, $2,308 in restructuring and other related costs and $6,361 in share-based compensation expense.

(3) $52,826 on an adjusted basis excluding $753 in restructuring and other related costs and $310 in share-based compensation expense.

(4) $0 on an adjusted basis excluding $1,488 related to an acquisition-related in-process research and development charge.

(5) $88,651 on an adjusted basis excluding the adjustments described in items (1) – (4) above.

(6) $0 on an adjusted basis excluding $3,018 related to the impairment of a private company equity investment.

(7) $31,512 on an adjusted basis excluding the tax impact of the adjustments described in items (1) – (3) and (6) above.

(8) $60,753 and $2.01 per share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (1) – (4) and (6) above.

(9) $362,450 on an adjusted basis excluding $3,931 in acquisition-related intangible amortization, $455 in acquisition-related inventory write-up amortization, $700 in restructuring and other related costs and $314 in share-based compensation expense.

(10) $179,493 on an adjusted basis excluding $2,082 in acquisition-related intangible amortization, $2,098 in restructuring and other related costs and $7,149 in share-based compensation expense.

(11) $47,925 on an adjusted basis excluding $287 in restructuring and other related costs and $380 in share-based compensation expense.

(12) $85,095 on an adjusted basis excluding the adjustments described in items (9) – (11) above.

(13) $30,506 on an adjusted basis excluding the tax impact of the adjustments described in items (9) – (11) above.

(14) $57,404 and $1.85 per share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (9) – (11) above.

VARIAN, INC. AND SUBSIDIARY COMPANIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands, except par value amounts)

	June 27, 2008		September 28, 2007
ASSETS
Current assets
Cash and cash equivalents	$	128,215	$	196,396
Accounts receivable, net		189,192		187,429
Inventories		184,790		140,533
Deferred taxes		38,175		38,068
Prepaid expenses and other current assets		19,277		17,332
Total current assets		559,649		579,758
Property, plant and equipment, net		114,975		110,792
Goodwill and intangible assets, net		273,094		225,332
Other assets		20,376		20,951
Total assets	$	968,094	$	936,833
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current portion of long-term debt	$	—	$	6,250
Accounts payable		78,603		72,588
Deferred profit		10,531		13,641
Accrued liabilities		173,007		159,109
Total current liabilities		262,141		251,588
Long-term debt		18,750		18,750
Deferred taxes		7,302		4,050
Other liabilities		44,206		44,358
Total liabilities		332,399		318,746
Stockholders’ equity
Preferred stock—par value $0.01, authorized—1,000 shares; issued—none		—		—
Common stock—par value $0.01, authorized—99,000 shares; issued and outstanding— 29,350 shares at June 27, 2008 and 30,345 shares at September 28, 2007		360,067		351,330
Retained earnings		182,981		199,471
Accumulated other comprehensive income		92,647		67,286
Total stockholders’ equity		635,695		618,087
Total liabilities and stockholders’ equity	$	968,094	$	936,833

VARIAN, INC. AND SUBSIDIARY COMPANIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands)

	Fiscal Quarter Ended						Nine Months Ended
	June 27, 2008			June 29, 2007			June 27, 2008			June 29, 2007
Cash flows from operating activities
Net earnings	$	11,366		$	14,551		$	44,737		$	46,188
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		7,938			7,091			21,217			21,163
(Gain) loss on disposition of property, plant and equipment		(154	)		11			(452	)		(196	)
Impairment of private company equity investment		—			—			3,018			—
Purchased in-process research and development		1,488			—			1,488			—
Share-based compensation expense		2,385			2,176			7,207			7,890
Deferred taxes		1,116			(656	)		(540	)		(1,802	)
Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net		12,467			915			10,735			2,245
Inventories		(7,328	)		(2,699	)		(31,046	)		(9,703	)
Prepaid expenses and other current assets		1,482			(436	)		490			(436	)
Other assets		(691	)		(137	)		(726	)		(212	)
Accounts payable		(2,065	)		(2,725	)		1,222			(6,488	)
Deferred profit		508			(2,814	)		(3,966	)		(3,269	)
Accrued liabilities		(613	)		8,273			3,200			272
Other liabilities		1,994			1,348			3,041			3,613
Net cash provided by operating activities		29,893			24,898			59,625			59,265
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		478			39			1,265			3,193
Purchase of property, plant and equipment		(7,466	)		(4,909	)		(16,674	)		(10,879	)
Purchase of businesses, net of cash acquired		(37,689	)		(285	)		(52,898	)		(5,066	)
Private company equity investments		—			—			(18	)		—
Net cash used in investing activities		(44,677	)		(5,155	)		(68,325	)		(12,752	)
Cash flows from financing activities
Repayments of debt		(6,250	)		(1,250	)		(6,250	)		(2,500	)
Repurchase of common stock		(10,369	)		(17,627	)		(81,892	)		(69,582	)
Issuance of common stock		2,528			6,539			15,761			26,748
Excess tax benefit from share-based plans		188			1,323			3,151			7,070
Transfers to Varian Medical Systems, Inc.		(178	)		(33	)		(600	)		(381	)
Net cash used in financing activities		(14,081	)		(11,048	)		(69,830	)		(38,645	)
Effects of exchange rate changes on cash and cash equivalents		(343	)		2,343			10,349			9,317
Net (decrease) increase in cash and cash equivalents		(29,208	)		11,038			(68,181	)		17,185
Cash and cash equivalents at beginning of period		157,423			160,302			196,396			154,155
Cash and cash equivalents at end of period	$	128,215		$	171,340		$	128,215		$	171,340

VARIAN, INC. AND SUBSIDIARY COMPANIES

RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL

UNAUDITED RESULTS OF OPERATIONS

(In thousands)

Third Quarter FY 2008 and Third Quarter FY 2007

and

First Nine Months FY 2008 and First Nine Months FY 2007

	Fiscal Quarter Ended						Nine Months Ended
	June 27, 2008			June 29, 2007			June 27, 2008			June 29, 2007
TOTAL COMPANY
Cost of Sales
U.S. GAAP as reported	$	138,266		$	125,176		$	403,684		$	367,850
Adjustments:
Share-based compensation expense		(92	)		(95	)		(293	)		(314	)
Acquisition-related intangible amortization		(1,978	)		(1,306	)		(4,884	)		(3,931	)
Acquisition-related inventory write-up amortization		(646	)		—			(1,236	)		(455	)
Restructuring and other related costs		(525	)		(700	)		(1,175	)		(700	)
As adjusted	$	135,025		$	123,075		$	396,096		$	362,450
Selling, General and Administrative
U.S. GAAP as reported	$	68,797		$	64,366		$	202,380		$	190,822
Adjustments:
Share-based compensation expense		(2,116	)		(1,908	)		(6,361	)		(7,149	)
Acquisition-related intangible amortization		(399	)		(506	)		(1,239	)		(2,082	)
Restructuring and other related costs		(904	)		(1,919	)		(2,308	)		(2,098	)
As adjusted	$	65,378		$	60,033		$	192,472		$	179,493
Research and Development
U.S. GAAP as reported	$	18,519		$	16,879		$	53,889		$	48,592
Adjustments:
Share-based compensation expense		(96	)		(126	)		(310	)		(380	)
Restructuring and other related costs		(258	)		(287	)		(753	)		(287	)
As adjusted	$	18,165		$	16,466		$	52,826		$	47,925
Purchased In-Process Research and Development
U.S. GAAP as reported	$	1,488		$	—		$	1,488		$	—
Adjustments:
Acquisition-related in-process research and development charge		(1,488	)		—			(1,488	)		—
As adjusted	$	—		$	—		$	—		$	—

VARIAN, INC. AND SUBSIDIARY COMPANIES

RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL

UNAUDITED RESULTS OF OPERATIONS

(In thousands, except margin data)

Third Quarter FY 2008 and Third Quarter FY 2007

and

First Nine Months FY 2008 and First Nine Months FY 2007

	Fiscal Quarter Ended						Nine Months Ended
	June 27, 2008			June 29, 2007			June 27, 2008			June 29, 2007
TOTAL COMPANY (Continued)
Operating Earnings
U.S. GAAP as reported	$	17,379		$	20,674		$	68,604		$	67,699
Adjustments:
Share-based compensation expense		2,304			2,129			6,964			7,843
Acquisition-related in-process research and development charge		1,488			—			1,488			—
Acquisition-related intangible amortization		2,377			1,812			6,123			6,013
Acquisition-related inventory write-up amortization		646			—			1,236			455
Restructuring and other related costs		1,687			2,906			4,236			3,085
As adjusted	$	25,881		$	27,521		$	88,651		$	85,095
Operating Margins
U.S. GAAP as reported		7.1	%		9.1	%		9.4	%		10.0	%
Adjustments:
Share-based compensation expense		0.9			0.9			1.0			1.2
Acquisition-related in-process research and development charge		0.6			—			0.2			—
Acquisition-related intangible amortization		1.0			0.8			0.7			0.8
Acquisition-related inventory write-up amortization		0.3			—			0.2			0.1
Restructuring and other related costs		0.7			1.3			0.6			0.5
As adjusted		10.6	%		12.1	%		12.1	%		12.6	%
Impairment of Private Company Equity Investment
U.S. GAAP as reported	$	—		$	—		$	3,018		$	—
Adjustments:
Impairment of private company equity investment		—			—			(3,018	)		—
As adjusted	$	—		$	—		$	—		$	—

VARIAN, INC. AND SUBSIDIARY COMPANIES

RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL

UNAUDITED RESULTS OF OPERATIONS

(In thousands, except per share data)

Third Quarter FY 2008 and Third Quarter FY 2007

and

First Nine Months FY 2008 and First Nine Months FY 2007

	Fiscal Quarter Ended				Nine Months Ended
	June 27, 2008		June 29, 2007		June 27, 2008		June 29, 2007
TOTAL COMPANY (Continued)
Income Tax Expense
U.S. GAAP as reported	$	6,823	$	7,291	$	24,463	$	24,326
Adjustments:
Tax impact of adjustments:
Share-based compensation expense		659		777		1,922		2,863
Acquisition-related intangible amortization		747		635		2,025		2,088
Acquisition-related inventory write-up amortization		161		—		410		158
Impairment of private company equity investment		—		—		1,154		—
Restructuring and other related costs		597		1,018		1,538		1,071
As adjusted	$	8,987	$	9,721	$	31,512	$	30,506
Net Earnings
U.S. GAAP as reported	$	11,366	$	14,551	$	44,737	$	46,188
Adjustments:
Share-based compensation expense		1,645		1,352		5,042		4,980
Acquisition-related in-process research and development charge		1,488		—		1,488		—
Acquisition-related intangible amortization		1,630		1,177		4,098		3,925
Acquisition-related inventory write-up amortization		485		—		826		297
Impairment of private company equity investment		—		—		1,864		—
Restructuring and other related costs		1,090		1,888		2,698		2,014
As adjusted	$	17,704	$	18,968	$	60,753	$	57,404
Diluted Earnings Per Share
U.S. GAAP as reported	$	0.38	$	0.47	$	1.48	$	1.49
Adjustments:
Share-based compensation expense		0.06		0.04		0.17		0.16
Acquisition-related in-process research and development charge		0.05		—		0.05		—
Acquisition-related intangible amortization		0.05		0.04		0.13		0.13
Acquisition-related inventory write-up amortization		0.02		—		0.03		0.01
Impairment of private company equity investment		—		—		0.06		—
Restructuring and other related costs		0.04		0.06		0.09		0.06
As adjusted	$	0.60	$	0.61	$	2.01	$	1.85

VARIAN, INC. AND SUBSIDIARY COMPANIES

RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL

UNAUDITED RESULTS OF OPERATIONS

(In thousands, except margin data)

Third Quarter FY 2008 and Third Quarter FY 2007

and

First Nine Months FY 2008 and First Nine Months FY 2007

	Fiscal Quarter Ended						Nine Months Ended
	June 27, 2008			June 29, 2007			June 27, 2008			June 29, 2007
SCIENTIFIC INSTRUMENTS SEGMENT
Operating Earnings
U.S. GAAP as reported	$	12,199		$	17,406		$	54,509		$	58,062
Adjustments:
Share-based compensation expense		849			692			2,586			2,562
Acquisition-related in-process research and development charge		1,488			—			1,488			—
Acquisition-related intangible amortization		2,377			1,812			6,123			6,013
Acquisition-related inventory write-up amortization		646			—			1,236			455
Restructuring and other related costs		1,687			2,906			4,236			3,085
As adjusted	$	19,246		$	22,816		$	70,178		$	70,177
Operating Margins
U.S. GAAP as reported		6.1	%		9.3	%		9.1	%		10.5	%
Adjustments:
Share-based compensation expense		0.4			0.4			0.4			0.5
Acquisition-related in-process research and development charge		0.7			—			0.2			—
Acquisition-related intangible amortization		1.3			0.9			1.1			1.0
Acquisition-related inventory write-up amortization		0.3			—			0.2			0.1
Restructuring and other related costs		0.8			1.6			0.7			0.6
As adjusted		9.6	%		12.2	%		11.7	%		12.7	%
VACUUM TECHNOLOGIES SEGMENT
Operating Earnings
U.S. GAAP as reported	$	7,757		$	7,838		$	24,261		$	23,853
Adjustments:
Share-based compensation expense		247			115			645			977
As adjusted	$	8,004		$	7,953		$	24,906		$	24,830
Operating Margins
U.S. GAAP as reported		17.7	%		19.5	%		19.0	%		19.7	%
Adjustments:
Share-based compensation expense		0.6			0.3			0.5			0.9
As adjusted		18.3	%		19.8	%		19.5	%		20.6	%
GENERAL (UNALLOCATED) CORPORATE
Operating Earnings
U.S. GAAP as reported	$	(2,577	)	$	(4,570	)	$	(10,166	)	$	(14,216	)
Adjustments:
Share-based compensation expense		1,208			1,322			3,733			4,304
As adjusted	$	(1,369	)	$	(3,248	)	$	(6,433	)	$	(9,912	)

VARIAN, INC. AND SUBSIDIARY COMPANIES

RECONCILIATION OF GAAP TO ADJUSTED RESULTS - PROJECTED

RESULTS OF OPERATIONS

Fiscal Year Ending October 3, 2008

	Range of Projected Results
TOTAL COMPANY
Projected Diluted Earnings Per Share
Projected U.S. GAAP	$1.96 - $2.14
Adjustments:
Projected share-based compensation expense	$0.23
Projected acquisition-related in-process research and development charge	$0.05
Projected acquisition-related intangible amortization	$0.18 - $0.20
Projected acquisition-related inventory write-up amortization	$0.03 - $0.05
Projected impairment of private company equity investment	$0.06
Projected restructuring and other related costs	$0.10 - $0.14
Projected as adjusted	$2.69 - $2.79