January 10, 2006 - TomoTherapy Incorporated has raised $14 million of new equity capital in late December. The capital infusion will be used to fuel the company's accelerating growth and expanding operations as it meets the worldwide demand for its revolutionary cancer treatment system.

"Our shareholders understand our growth story and the need to further invest in expansion," said Dr. Frederick Robertson, CEO of TomoTherapy. "Our growth has been dramatic. Revenue increased almost 70% in 2005, while the number of orders for our system more than doubled between years. To keep up with this product demand we have ramped up our hiring, growing from 171 employees at the end of 2004 to 327 employees at December 31, 2005. The underlying TomoTherapy business is very strong. The additional capital will help solidify the balance sheet while providing more funds for growth, especially in the International markets. This could very well be our last round of private financing."

The Series E financing was completed solely within the current investor group and the company's Board of Directors. Significant investors included: The Endeavors Group, Milwaukee, WI; Open Prairie Ventures, Champaign, IL; State of Wisconsin Investment Board, Madison, WI; Advantage Capital Wisconsin Partners, Madison, WI; and Ascension Health Ventures, St. Louis, MO. The company has now raised a total of $42 million of outside equity capital in five rounds of financing.

The additional capital will also be used to increase the company's manufacturing capacity. In November, TomoTherapy hired the Gialamas Co. to construct a 66,000 square-foot building at 1209 Deming Way, across the street from the company's current headquarters. When it opens in June, this second building will primarily serve as a manufacturing facility and is expected to more than double the production capacity.

About TomoTherapy Incorporated
Based in Madison, Wisconsin, TomoTherapy Incorporated has developed a revolutionary new medical system that combines on-board CT imaging with conformal radiation therapy to provide unprecedented precision in the treatment of cancer patients.The TomoTherapy Hi*Art System© is designed to target radiation treatment to the patient's tumor while helping to limit damage to the surrounding tissues. The TomoTherapy technology was born out of collaboration with the University of Wisconsin.

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