1. Copyright © 2010 Xoft, Inc. MC107 R9 03/2010

2. Copyright © 2010 Xoft, Inc. - 2 - CONFIDENTIAL MC107 R9 03/2010 The global leader in Electronic Brachytherapy (eBx™) Products based on proprietary miniaturized X-ray source technology Key company milestones: –FDA Clearance, Axxent System, Breast Only: Dec 2005 –Ramping up Production/Manufacturing: 2006 –Breast APBI Clinical Trial: 2007 –Soft Launch: Dec 2007 –FDA Clearance, Rest of Body (Controller/Source) : Feb 2008 –FDA Clearance Endometrial cancer: May 2008 –Breast IORT, first treatment: September 2008 –Skin cancer: July 2009 -- Pergentium Ltd distribution Nov 2009 Xoft’s Mission – Expanding access to highly conformal radiation therapy through our system of care to improve the treatment of a broad array of cancers Xoft, Inc. – Basic Facts

3. Copyright © 2010 Xoft, Inc. - 3 - CONFIDENTIAL MC107 R9 03/2010 The Xoft System Evolution  BREAST  REST OF BODY

4. Copyright © 2010 Xoft, Inc. - 4 - CONFIDENTIAL MC107 R9 03/2010 The Axxent System is being used at many marquee medical centers including 5 hospitals ranked in the top 20 hospitals in the U.S. 5 of the Top 20 US Hospitals have eBx ™ * Indicates ranking US News and World Report top 20 hospitals. ** indicates ranking top cancer hospitals. (1) Rankings per US News and World Report.

5. Copyright © 2010 Xoft, Inc. - 5 - CONFIDENTIAL MC107 R9 03/2010 Install Base There are currently 53 Axxent systems installed in the U.S. (1) Represents site with an Axxent system installed (1) One system has been installed internationally in Seoul, South Korea.

6. Copyright © 2010 Xoft, Inc. - 6 - CONFIDENTIAL MC107 R9 03/2010 Traditional RT Treatment Options & Limitations Xoft’s eBx system addresses many of the shortcomings of traditional RT systems

7. Copyright © 2010 Xoft, Inc. - 7 - CONFIDENTIAL MC107 R9 03/2010 Xoft eBx ™ Technology Multi-application platform –Clinical ■The Axxent eBx eliminates the need for radioactive isotopes ■Offers physicians a safer and more easily managed radiotherapy platform ■Delivers radiation directly to the tumor site sparing healthy tissue and organs ■Offers an easy entry into IORT –Operational ■No radioisotope, No NRC licensing, No handling, No safety issues; allows the facility to operate in an isotope-free environment outside of the traditional bunker –Financial ■~£1.0 million bunker expense eliminated as well as a barrier to offer radiation therapy

8. Copyright © 2010 Xoft, Inc. - 8 - CONFIDENTIAL MC107 R9 03/2010 Radium Capsules Isotope Needle and Seed Implants Isotope Based HDR Afterloader Cesium-137 Cobalt-60 Digital Linear Accelerator Internal RT External RT Combines the Benefits of Brachytherapy with Modern Electronic Therapy Technologies Orthovoltage X-rays eBx has the potential to do to isotope therapy what linear accelerators did to cobalt therapies—a generation ago Electronic Brachytherapy (eBx) A Next Step in the Evolution of Radiation Therapy Axxent

9. Copyright © 2010 Xoft, Inc. - 9 - CONFIDENTIAL MC107 R9 03/2010 Why eBx ™ ? No shielded vault required Platform technology – large existing market opportunity Non-radioisotope source Enables IORT Minimizes dose to healthy tissue Medical staff can remain in the room with the patient, as determined by the facility Radiation Safety Officer Portability increases market opportunity Xoft’s miniaturized eBx technology offers significant advantages over traditional brachytherapy

10. Copyright © 2010 Xoft, Inc. - 10 - CONFIDENTIAL MC107 R9 03/2010 Equivalent Treatment at a Fraction of the Cost LINAC SystemBunkerCost HDR ReloaderBunker Axxent + + = = = £3.5mm £1.8mm £0.3mm Xoft delivers equivalent treatment at 1/6 th – 1/10 th the cost of alternative systems

11. Copyright © 2010 Xoft, Inc. - 11 - CONFIDENTIAL MC107 R9 03/2010 Non-Radioisotope Source –Increasing regulatory control over use of radioactive isotopes in medicine –Medical Isotopes under Nuclear Regulatory Commission (NRC) control which is now governed by the Department of Homeland Security –Issuing directives backed by The National Academy of Sciences (NAS) to explore economic and clinically viable alternatives to isotopes which pose potential security threat –Environmental and patient concern over use of isotopes –Nuclear Regulatory Commission (“NRC”) requires physicians to “stand by equipment” during treatment in case of radioactive accident during brachytherapy Among numerous other advantages, public safety and environmental concerns will also drive eBx adoption eBx Source Traditional Source

12. Copyright © 2010 Xoft, Inc. - 12 - CONFIDENTIAL MC107 R9 03/2010 eBx Enabling Technology for IORT Low energy – High dose non-isotopic disposable source is unique to Xoft and allows for safe placement of source into surgical site without the need of a shielded bunker A single dose of intraoperative radiation may have as much effect on the tumor as 8-10 daily radiation treatments KOL’s and soon to be released clinical data will accelerate IORT adoption

13. Copyright © 2010 Xoft, Inc. - 13 - CONFIDENTIAL MC107 R9 03/2010 eBx’s Superior Dose Profile Spares Healthy Tissue Unlike radioactive isotopes, eBx delivers less radiation to surrounding healthy organs and tissue (1) Dose profile significantly reduces treatment course –For example, in breast cancer patients, treatment is typically reduced from 6-7 weeks for external beam to 5 days Decrease normal tissue toxicity Significant patient comfort and compliance benefits Dose Distribution eBx vs. Mammosite eBx vs. HDR for Endometrial Cancer (1) Dickler, et al. "A Dosimetric comparison of MammoSite high dose rate brachytherapy and Xoft Axxent electronic brachytherapy," Brachytherapy (6) 2007, 164-168. "A Dosimetric comparison of Xoft Axxent Electronic Brachytherapy and Ir-192 HDR brachytherapy in the treatment of endometrial cancer," Brachytherapy (7) 2008, 154.

14. Copyright © 2010 Xoft, Inc. - 14 - CONFIDENTIAL MC107 R9 03/2010 eBx Safer for Medical Personnel and Improving Patient Care Low energy source spares medical personnel coincidental exposure to high-energy ionizing radiation –Source non-radioactive when switched “off” Medical staff can remain in the room with the patient, as determined by the facility Radiation Safety Officer The ability to comfort patients during treatment is viewed as a significant quality of care improvement that only eBx offers

15. Copyright © 2010 Xoft, Inc. - 15 - CONFIDENTIAL MC107 R9 03/2010 Portability Increases Potential Strong correlation exists between distance to treatment center and percentage of patients receiving radiation therapy Axxent’s portability significantly increases Xoft’s addressable market opportunity (1) Journal of National Cancer Institute, February 2, 2000 New Mexico Statistics following Breast Conserving Surgery. (2) Impact of Patient Distance to Radiation Therapy on Mastectomy Use in Early Stage Breast Cancer Patients, A. Schroen et al., Journal of Clinical Oncology, October 1, 2005 Radiation Following BCS vs. Distance from RT Facility (1) Choice of Mastectomy (2)

16. Copyright © 2010 Xoft, Inc. Xoft System Overview

17. Copyright © 2010 Xoft, Inc. - 17 - CONFIDENTIAL MC107 R9 03/2010 The Xoft System Evolution  BREAST  REST OF BODY

18. Copyright © 2010 Xoft, Inc. - 18 - CONFIDENTIAL MC107 R9 03/2010 Xoft System Overview

19. Copyright © 2010 Xoft, Inc. - 19 - CONFIDENTIAL MC107 R9 03/2010 Controller Xoft Controller The Axxent controller: –Controls dose delivery –User friendly interface FDA clearance breast: –December 2005 Cleared for general radiation therapy: –February 2008 Weight 200lbs User Interface

20. Copyright © 2010 Xoft, Inc. - 20 - CONFIDENTIAL MC107 R9 03/2010 Miniaturized X-ray Source Xoft: Miniaturized X-ray Source Overview High vacuum X-ray tube technology –40 - 50 kV operating potential –Output: ~1 Gy/min. 1cm into tissue Treatment times are comparable to "Fresh" Ir-192 sources Fully disposable device FDA clearance breast: –December 2005 Cleared for general radiation therapy: –February 2008 Xoft’s miniaturized eBx technology

21. Copyright © 2010 Xoft, Inc. - 21 - CONFIDENTIAL MC107 R9 03/2010 Axxent Source and Dose Rate ComparisonDose Rate vs. Energy Profile The unique, proprietary non-radioisotope high dose – low energy source Miniature X-ray Source Dose – Energy Characteristics High dose rate – low energy source Dose deposited locally, but sufficient to penetrate target tissue Advantages Outpatient treatment times same as fresh (7 Ci) Ir 192 source Source doesn’t decay over time therefore maintains constant dose profile Minimal stray radiation to normal tissue, organs, and medical personnel Minimal shielding required –i.e. no bunker  Portable Medical staff can remain in the room with the patient, as determined by the facility Radiation Safety Officer Enables IORT Energy Dose Rate Low High Low High Radioactive Seeds Xoft Radioactive Sources or External Beams

22. Copyright © 2010 Xoft, Inc. - 22 - CONFIDENTIAL MC107 R9 03/2010 Xoft s miniaturized X-ray source delivers equivalent dose as Ir at the prescription point but lower dose to critical structures Source Depth-Dose Characteristics (Balloon Applicator) Same dose as Iridium-192 at the prescription point Higher dose inside applicator (absorbed by saline) Lower dose far away (less shielding needed) Lower dose to critical structures (heart, lung, contralateral breast)

23. Copyright © 2010 Xoft, Inc. - 23 - CONFIDENTIAL MC107 R9 03/2010 Use Stepping to Reduce Effect of Source Anisotropy Single source position 2.5 cm from distal tip (position 22.5) Stepped source 9 positions, 5 mm spacing, active range 24.5 – 20.5 cm Note reduced anisotropy

24. Copyright © 2010 Xoft, Inc. - 24 - CONFIDENTIAL MC107 R9 03/2010 Xoft Controller Components Applicator hub attachment Source connected to source nest Source high voltage cable attachment

25. Copyright © 2010 Xoft, Inc. - 25 - CONFIDENTIAL MC107 R9 03/2010 Xoft Controller Well Chamber and Electrometer Components Source in well chamber for calibration Well chamber connected internally to electrometer

26. Copyright © 2010 Xoft, Inc. - 26 - CONFIDENTIAL MC107 R9 03/2010 Transportable

27. Copyright © 2010 Xoft, Inc. - 27 - CONFIDENTIAL MC107 R9 03/2010 Endometrial Applicator Skin Applicator Balloon Applicator Axxent: Applicators Future development will expand eBx indications Sterile Sheath - DaVinci HAM App. Beth Israel Spine App. Sloan Kettering

28. Copyright © 2010 Xoft, Inc. Current Indications Treated

29. Copyright © 2010 Xoft, Inc. - 29 - CONFIDENTIAL MC107 R9 03/2010 Breast Cancer Overview Incidence: –There were approximately 254,650 cases in 2009 Breast cancer is the most common cancer among women, except for skin cancers; the chance of developing invasive breast cancer at some time in a woman's life is approximately 1 in 8 (12%) Current treatment options included: –External beam RT therapy - a 30 day treatment plan –Mastectomy - a conservative, but disfiguring option –Traditional brachytherapy - which delivers more radiation to heart and lung than eBx Source: American Cancer Society; Cancer Facts and Figures 2008-9, SEER Incidence Data, 1999-2003. National Comprehensive Cancer Network (NCCN). Xoft’s portability offers a unique advantage and opportunity to expand the current useage for APBI

30. Copyright © 2010 Xoft, Inc. - 30 - CONFIDENTIAL MC107 R9 03/2010 Treating Breast Cancer with eBx Patient Driven: –5 days versus 6 to 7 weeks of therapy –Increased convenience for the frail / elderly patient –Working woman or rural patient –Increased access for patients –Medical personnel can stay in the treatment room as determined by the facility Radiation Safety Officer Physician Driven: –Increased utilization of BCT –Decrease normal tissue toxicity –Economics Source: American Cancer Society; Cancer Facts and Figures 2008-9, SEER Incidence Data, 1999-2003. National Comprehensive Cancer Network (NCCN). U.S. breast market: 254,650 Cases in 2009 U.S. lumpectomy market:162,575 Eligible patients eBx market:70,000 Eligible patients eBx’s high-dose, low-energy source delivers less radiation to critical structures such as the heart and lung

31. Copyright © 2010 Xoft, Inc. - 31 - CONFIDENTIAL MC107 R9 03/2010 Endometrial Cancer Market Overview Incidence: –40,895 endometrial cases in 2009 Endometrial cancer is the fourth most common cancer in women and the most common female reproductive cancer, according to the American Cancer Society (ACS) With eBx the patient receives less dose to rectum and bladder potentially reducing long term effects of radiation Brachytherapy is a preferred treatment for Endometrial Cancer according to the PORTEC study (1) –Patients who received external beam therapy reported significantly higher levels of bowel symptoms and a decrease in social functioning; Brachytherapy should be the preferred treatment Source: American Cancer Society; Cancer Facts and Figures 2008-9, SEER Incidence Data, 1999-2003. National Comprehensive Cancer Network (NCCN). (1) J Clin Oncol 27:3547-3556. © 2009 by American Society of Clinical Oncology.

32. Copyright © 2010 Xoft, Inc. - 32 - CONFIDENTIAL MC107 R9 03/2010 Treating Endometrial Cancer with eBx Patient Driven: –Increased access for the patient –Medical personnel can stay in the treatment room as determined by the facility Radiation Safety Officer Physician Driven: –Improved Dosimetry, Axxent source does not show anisotropy like Iridium –Doses outside PTV lower for Axxent HDR Source due to steeper dose fall- off; spares healthy tissue of the rectum and bladder –Applicator insertion and treatment set- up similar –No isotope handling –Minimal shielding required Endomentrial market :40,895 Cases in 2009 eBx market: 27,619 Eligible patients Source: American Cancer Society; Cancer Facts and Figures 2008-9, SEER Incidence Data, 1999-2003. National Comprehensive Cancer Network (NCCN). Axxent has significant competitive advantages due to its more optimal dose targeting that dramatically reduces dose to the bladder and rectum

33. Copyright © 2010 Xoft, Inc. - 33 - CONFIDENTIAL MC107 R9 03/2010 Skin Cancer Market Overview Incidence: –1 million non-melanoma skin cancer ■750,000 basal and 250,000 squamous Radiation therapy cases: –26,000 Current standard of care: –Surgery, Mohs surgery & traditional RT –Surgery can be disfiguring especially for areas around the face and where there is cartilage Referring Physician: –Dermatologist Source: American Cancer Society; Cancer Facts and Figures 2007-8, SEER Incidence Data, 1999-2003. National Comprehensive Cancer Network (NCCN). Xoft’s customers now say patients request a non surgical approach to treatment.

34. Copyright © 2010 Xoft, Inc. - 34 - CONFIDENTIAL MC107 R9 03/2010 Treating Skin Cancer with eBx Patient Driven –More convenient dose schedule compared to external beam –An option for those who can not undergo surgery –Medical personnel can stay in the treatment room as determined by the facility Radiation Safety Officer Physician Driven –Xoft Electronic Brachytherapy using surface applicator offers comparable technique to Ir-192 HDR brachytherapy with several advantages ■Isotope free ■Dosimetric advantages compared to electron beam ■Superior dosimetry that allows for reduced margin ►1 million cases (1) (1)American Cancer Society; Cancer Facts and Figures 2007-8. (2)SEER Incidence Data, 1999-2003 National Comprehensive Cancer Network (NCCN). Basal and Squamous Cell Cancer Patients Basal and Squamous Cell Cancer Patients Receiving Radiation Therapy ► 26,000 cases per year (2) Xoft's unique dosimetric capabilities provided significant competitive advantages in treating skin cancer Image courtesy of James S. Welsh MS, MD, FACRO

35. Copyright © 2010 Xoft, Inc. - 35 - CONFIDENTIAL MC107 R9 03/2010 Case Study - Ajay Bhatnagar MD, MBA 74 yr old gentleman with 2.5 cm squamous cell carcinoma lesion Self referral with chief complaint: “Tired of being cut by my dermatologist” Xoft Electronic Brachytherapy treatment course: –Received 40.0 Gy in 8 Fractions using 35 mm surface applicator, prescribed to 0.5 cm depth –Delivered twice weekly Pre-treatment Post-treatment* Squamous cell carcinoma lesion Axxent enables significant improvement in cosmesis * 30 days post treatment Images courtesy of Ajay Bhatnagar,MD

36. Copyright © 2010 Xoft, Inc. - 36 - CONFIDENTIAL MC107 R9 03/2010 Ajay Bhatnagar, M.D. Cancer Treatment Services Arizona “The Axxent eBx System allows surface brachytherapy in a minimally shielded environment without the use of radioactive isotopes or a megavoltage linear accelerator. Access as well as the radiation process is simplified.” “Patients are quite excited about this new technology for several reasons, including the reduced shielding compared to external radiation therapy. They also prefer this treatment over surgery for their skin cancer. They often tell me that they wish they had this treatment rather than surgery for their previous skin cancers and will not do surgery again for any future skin cancers.” "Given the small penumbra of the Axxent eBx System, smaller field sizes can be used than with electron beam therapy, therefore providing a better cosmetic outcome. eBx can effectively treat amorphous areas such as the nose, which can be difficult to treat given the dosimetric properties of electron beam therapy. The lightweight contact applicator is easy to use, especially to treat surface lesions on the nose. In addition, treatment set-up and planning is much simpler compared to electron beam therapy." Dr. Bhatnagar - Radiation Oncologist

37. Copyright © 2010 Xoft, Inc. - 37 - CONFIDENTIAL MC107 R9 03/2010 September 3 rd, 2008 AM 7:45---Patient enters hospital 8:45--- Patient set up in OR 9:00---Sentinal node biopsy removed and sent to pathology 9:20---Lumpectomy performed 9:50---Balloon placed and radiation commences 10:15 Radiation complete and oncoplastic work commences 10:45 Surgery completed 11:45 Patients leaves hospital Therapy complete---only follow up monitoring September 7 th —Cancer Free Patient at wedding IORT - A New Frontier in Radiation Therapy Delivering RT and lumpectomy (with reconstruction) all in a 1 day therapy regimen

38. Copyright © 2010 Xoft, Inc. - 38 - CONFIDENTIAL MC107 R9 03/2010 Patient Discharged The patient was in at 7:45 AM and out at 11:45 AM

39. Copyright © 2010 Xoft, Inc. - 39 - CONFIDENTIAL MC107 R9 03/2010 Potential Areas for Research Include IORT – When Combined with IMRT is Gaining Support Delivers targeted dose at time of surgery 1 procedure as opposed to a series of treatments The dosimetric advantage provided by IORT to surgically available tumor beds will allow additional dose to secondary sites that would otherwise exceed typical tolerance limits The biologic effectiveness of a single large radiation dose is higher than for the same dose given in a fractionated regimen The dose of radiation is precisely delivered to the area at greatest risk of tumor recurrence (or persistence) Customized internal shielding allows the physician to protect dose-limiting normal tissues Can be used as a monotherapy or boost Lung Brain Spine Head Neck Colon Liver

40. Copyright © 2010 Xoft, Inc. - 40 - CONFIDENTIAL MC107 R9 03/2010 “I believe that giving a single fraction of radiation at the time of surgery will be advantageous because it will allow all the radiation to be delivered before any remaining tumor cells have a chance to grow. In addition, due to the dose distribution of the electronic brachytherapy source, it will intensify the dose to the part of the breast at highest risk for recurrence... The mobile nature of the Xoft Axxent controller, the low energy/shielding requirements associated with the Xoft source, and the rapid fall of kV radiation all make it ideal for IORT.” Adam Dickler, M.D. - Radiation Oncologist “A number of potential problems associated with the delivery of postoperative APBI can be negated with IORT, and specific surgical techniques can be employed at the operating table. I think this is very advantageous for IORT and because of this I think IORT could increase the number of APBI cases.” Olga Ivanov, M.D. - Surgeon “The fact that my treatment was done before I even woke up is beyond words...I came in with cancer, went to sleep, and when I woke up, I was completely done with my breast cancer.” Marianne H. - Patient IORT – Physician and Patient Perspectives

41. Copyright © 2010 Xoft, Inc. - 41 - CONFIDENTIAL MC107 R9 03/2010 IORT – Growing Clinical and KOL Support Continue to focus on new markets with academia –Veronesi’s European data to be published in the U.S. ■1,246 patients with 7-year correlation to 1,213 patients treated with electrons –Zeiss TARGIT Trial data to be completed and published in Q1 (2,200 cases) ■This will give us more data on IORT than we have for APBI –Dickler multi-center protocol: 15 cases ■USF – Dr. Charles Cox ■Dallas Methodist – Dr. Arve Gillette ■Univ. of Mississippi – Dr. Michael Baird ■Reed City –Hoag’s: Mel Silverstein protocol ■Dr. West @ RadNet ■Dr. Giuliani @ St. John’s IORT will become a significant growth driver and an important focus of sales and marketing efforts

42. Copyright © 2010 Xoft, Inc. - 42 - CONFIDENTIAL MC107 R9 03/2010 Xoft eBx Competitive Matrix Xoft enjoys numerous advantages over competitive Brachytherapy systems

43. Copyright © 2010 Xoft, Inc. Customer Service & Support

44. Copyright © 2010 Xoft, Inc. - 44 - CONFIDENTIAL MC107 R9 03/2010 Service Support and Customer Service Instrument installations Customer training / orientation Instrument telephone support assistance 24/7 48 hr On-site response Scheduled maintenance Instrument updates / upgrades Service support programs and pricing Factory / depot instrument & parts repair Service support metrics What Service Support Provides

45. Copyright © 2010 Xoft, Inc. - 45 - CONFIDENTIAL MC107 R9 03/2010 Customer Survey Results - "Would You Recommend Xoft?" “Most importantly, the approach taken with the treatment planning system by having a trained individual to help with the first few plans is critical.” “Easy to use, no shielding required (unlike HDR unit), physicist does not have to be present at time of tx, not a radioactive source (more strict guidelines w/ HDR)” “I believe in the technology. Your company is presenting this technology in the right direction.” “Excellent product with very good sales and training support” “Quite impressed by the sales and training group. Always available to help with the smallest issues.” 100% of 2009 survey respondents will recommend Xoft to their colleagues Note: Statements are actual responses from Xoft customers.

46. Copyright © 2010 Xoft, Inc. Clinical Publications

47. Copyright © 2010 Xoft, Inc. - 47 - CONFIDENTIAL MC107 R9 03/2010 Current Publications Over 75 abstracts on Xoft technology accepted for publication or poster and/or oral presentations at national and international meetings since May 2004

48. Copyright © 2010 Xoft, Inc. - 48 - CONFIDENTIAL MC107 R9 03/2010 Current Publications (Cont’d)

49. Copyright © 2010 Xoft, Inc. - 49 - CONFIDENTIAL MC107 R9 03/2010 Clinical Publication Strategy Xoft currently executing 10 studies which will yield 17 papers to be published over the next two years

50. Copyright © 2010 Xoft, Inc. - 50 - CONFIDENTIAL MC107 R9 03/2010 Recent Publication in Medical Physics Xoft gives dramatically less dose to healthy tissue, particularly heart and lung, when compared to HDR Ir 192 during 5 day breast treatment Comparison of organ doses for patients undergoing balloon brachytherapy of the breast with HDR Ir 192 or electronic sources using Monte Carlo simulations in a heterogeneous human phantom Matthew M. Mille and X. George Xub Nuclear Engineering and Engineering Physics Program, Rensselaer Polytechnic Institute, Troy, New York 12180 Mark J. Rivard Department of Radiation Oncology, Tufts University School of Medicine, Boston, Massachusetts 02111 "As some studies have suggested, there may be a link between low doses to the heart and lungs during radiotherapy to heart disease and lung cancer, dose-reductions to these organs afforded by eBx could prove clinically relevant. Regardless, the ALARA or “as low as reasonably achievable” precautionary principle of radiation protection suggests that eBx optimizes dose to nearby healthy soft tissue, even though this principle does not technically apply to patients whose irradiation is medically justified. Issues associated with irradiation of healthy organs by scattered radiation outside the treatment volume for external beam and image-guided procedures (e.g., cone-beam CT) have become a topic of discussion." "The significantly lower doses to many nearby healthy organs delivered by eBx, as reported here, suggest that eBx may be superior in terms of normal tissue sparing for some patients."