IBA Sells Prototype of Next Generation Carbon Therapy System

Leader in Proton Therapy Applies Expertise Towards New Technologies in Cancer Treatment

LOUVAIN-LA-NEUVE, Belgium, September 2, 2010 - IBA (Ion Beam Applications S.A.), developer of equipment and
pharmaceuticals dedicated to cancer diagnosis and treatment, announced today
that it has sold the prototype of its next generation carbon therapy system
to the French company CYCLHAD (un CYCLotron pour l'HADronthérapie, or a
Cyclotron for Hadron Therapy). CYCLHAD is a joint venture between IBA, SAPHYN
(SAnté et PHYsique Nucléaire, or Nuclear Health and Physics, a semi-public
company in Caen, France) and financial partners. Simultaneously, IBA has
signed a research and development agreement with SAPHYN to jointly develop
the potential of carbon beam therapy. These agreements will enable IBA to
continue its commitment towards providing next generation cancer therapy
techniques and personalized patient care.

Under the terms of the sales agreement, IBA will provide
CYCLHAD with the prototype of its next generation carbon therapy system based
on an advanced 400 MeV (millions of electron volts) superconducting
isochronous cyclotron able to accelerate carbon ions used in cancer therapy.
IBA will be responsible for the research, development and validation of all
technical and scientific equipment, and for the installation of the cyclotron
in CYCLHAD's research center in Caen, along with one fixed beam clinical
research room and one fixed beam physics research room. IBA will also provide
CYCLHAD with a 15-year service contract on the system. IBA will receive a
payment of between 60 and 70 million Euros for the equipment and services
from CYCLHAD. The contract signed today is still contingent on CYCLHAD
obtaining the necessary bank financing. As the system is a prototype, this
contract will have a very limited impact on IBA profits.

"Carbon shows enormous potential as a powerful solution for
difficult problems in the radiotherapy of cancer. Its ability to treat tumors
that have had the reputation of being radiation-resistant can be crucial when
treating cancers in areas such as the head and neck," said Yves Jongen,
founder and CRO of IBA. "As a pioneer in proton therapy, IBA is dedicated to
making the most accurate cancer treatments available to radiation oncologists
and patients through new developments that maximize our expertise. This is
also the first IBA system using the technology of superconducting magnets
which is likely to revolutionize cyclotron technology in the coming years.
IBA is pleased to partner with public and semi-public institutions in the
Caen area and share the same mission to develop novel techniques that could
benefit patient health on a global scale."

IBA is a leader in proton therapy, having sold 18 proton
therapy systems worldwide. A form of radiotherapy, proton therapy delivers a
precise dose of protons to a tumor to kill cancer cells while sparing healthy
surrounding tissue. IBA is now entering into new treatment techniques such as
carbon therapy, a more powerful and precise method to treat tumors, in
particular ones which show resistance to radiology treatments. Higher doses
can be delivered to the tumor without increasing the risk of side effects and
long term complications, thereby minimizing the number of treatment sessions
needed and improving treatment results and patient quality of life.

About IBA

IBA develops and markets leading-edge technologies,
pharmaceuticals and tailor-made solutions for healthcare with a focus on
cancer diagnosis and therapy. Leveraging on its scientific expertise, IBA is
also active in the field of industrial sterilization and ionization.

Listed on the pan-European stock exchange EURONEXT, IBA is
included in the BelMid Index.

(IBA: Reuters IBAB.BR and Bloomberg IBAB.BB).

Website: www.iba-worldwide.com

Media contacts: Christina Aplington, Ballou PR for IBA, +33-1-42229365, christina at balloupr.com