Intraop Medical Corporation Announces Merger Partner Financial Results for Quarter Ended December 31, 2004

[May 3, 2005]  Intraop Medical Corporation (OTCBB: IOPM), manufacturer of the Mobetron®, today filed a Form 8K/A with the Securities and Exchange Commission in which it reported financial results for its merger partner Intraop Medical, Inc.’s first fiscal quarter ended December 31, 2004. The Company completed the merger with Intraop Medical, Inc. on March 9, 2005, after which time the sole business of the Company became that of Intraop Medical, Inc.

For the quarter ended December 31, 2004 Intraop Medical, Inc. reported revenue of $2.4 million ($0.26 per basic share) up from $0.14 million ($0.02 per basic share) for the same period in the previous year. The increase was primarily due to the sale of Mobetron® systems to The Ohio State University Medical Center and to a customer in Novara, Italy, the first sale of a Mobetron® in Italy. Gross profit of $493,179 was also up for the quarter ended December 31, 2004 versus a loss of $25,890 for same quarter in the previous year.

Operating expenses for Intraop Medical, Inc. were down slightly in aggregate at $523,079 and $536,630 for the quarters ended December 31, 2004 and 2003, respectively, while interest expense was up from $120,817 for the quarter ended December 31, 2003 to $366,806 for the quarter ended December 31, 2004. Regardless, Intraop Medical, Inc.’s loss of $396,706 for the quarter ended December 31, 2004 was improved over a loss of $683,337 for the same quarter in the previous year. Net loss per share available to common shareholders was $0.06 per share for the quarter ended December 31, 2004 versus $0.12 per share for the same quarter in the previous year, based on 9,915,948 and 6,689,023 weighted average outstanding shares, respectively.

“The improved sales performance for the quarter ended December 31, 2004 is due to the growing demand for the Mobetron® and IORT,” says Donald Goer, President and Chief Executive Officer of the Company. “We expect this demand to continue to be strong, and are increasing our production to meet it.”