Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against TomoTherapy Inc

Business Wire, May 30, 2008

NEW YORK -- Coughlin Stoia Geller Rudman & Robbins LLP ("Coughlin Stoia") (http://www.csgrr.com/cases/tomo/) today announced that a class action has been commenced in the United States District Court for the Western District of Wisconsin on behalf of purchasers of TomoTherapy Inc. ("TomoTherapy" or "the Company") (NASDAQ:TOMO) common stock during the period between February 13, 2008 and April 17, 2008 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/tomo/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges TomoTherapy and certain of its officers and directors with violations of the Securities Exchange Act of 1934. TomoTherapy develops, markets, and sells the Hi-Art system, a radiation therapy system for the treatment of various types of cancers.

The complaint alleges that during the Class Period defendants issued a series of materially false and misleading statements regarding TomoTherapy's revenues and net income. Specifically, the complaint alleges that on February 13, 2008, the Company reported that for fiscal 2008 it "anticipates revenue of $290 million to $310 million and net income per share in the range of $0.34 to $0.39 per diluted share." Moreover, the Company touted a strong second half 2008 due to "strong order flow in the second half of 2007 and the projected timing of customers' construction projects."

Unbeknownst to shareholders, defendants knew, or should have known, that a greater percentage of TomoTherapy's backlogged orders were for multi-unit Hi-Art Systems ordered by for-profit entities who had scheduled delivery of the units sequentially. As a result of this delivery schedule, these units would remain in backlog longer than single-unit orders and delivery would be pushed further back in 2008 and even into 2009. Therefore, TomoTherapy had no reasonable basis for its revenue and net income projections for fiscal 2008 because the Company would not be able to recognize revenue for these multi-unit Hi-Art Systems until late 2008 or 2009.

Then, on April 17, 2008, the Company announced its estimated 2008 first-quarter results and revised its fiscal 2008 outlook. Specifically, the Company estimated that 2008 revenues would be in the range of $255 million to $290 million and 2008 net income would be in the range of $0.14 to $0.33 per diluted share. Moreover, the Company reported that it received fewer new sales orders in Europe and that it had to hire a new Managing Director for European and Middle East operations in April 2008.

Upon this news, on April 17, 2008, the price of TomoTherapy common stock dropped 32%, to close at $9.10 per share, on extraordinary trading volume in excess of eight million shares.

Plaintiff seeks to recover damages on behalf of all purchasers of TomoTherapy common stock during the Class Period (the "Class"). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.