Healthcare Industry News:  Palomar Medical Technologies 

Devices Litigation

 News Release - December 19, 2006

Candela Corporation Files Patent Infringement Action against Palomar Medical Technologies, Inc. in Lufkin, Texas

WAYLAND, Mass.--(HSMN NewsFeed)--Candela Corporation (NASDAQ: CLZR ), a global leader in the development and commercialization of advanced aesthetic laser and light based systems, announced today that it has filed a patent infringement complaint against Palomar Medical Technologies, Inc. (NASDAQ: PMTI ) in the United States District Court for the Eastern District of Texas, Lufkin Division.

The complaint asserts that numerous Palomar products, including but not limited to, the Palomar 1540 Fractional(TM) handpiece and the Palomar Lux Y(TM) handpiece, willfully infringe upon one or more of United States Patent Nos. 5,810,801, 6,659,999 and 6,120,497.

"While Candela is not litigious, we simply cannot allow Palomar's willful infringement of so many of our patents with so many of their handpieces", said Gerard Puorro, Candela's President and CEO. Mr. Puorro continued, "We are seeking monetary damages to compensate us for Palomar's past infringing activity, but more importantly, we are seeking a speedy trial whereby we obtain an injunction against any further infringing activity." The District Court for the Eastern District of Texas has been reported to bring similar matters to trial within 16 months of a complaint being filed.

As previously announced in August, Candela is also pursuing a separate lawsuit against Palomar in the District Court for the District of Massachusetts alleging that Palomar's Lux V(TM) handpiece and its Q-YAG 5 Q-Switched laser system, willfully infringes upon United States Patent Nos. 6,743,222 and 5,312,395 respectively.

About CANDELA: Candela Corporation manufactures, and distributes innovative clinical solutions that enable physicians, surgeons, and personal care practitioners to treat selected cosmetic and medical conditions using lasers, aesthetic laser systems, and other advanced technologies. Founded near Boston in 1970, the company markets and services its products in over 70 countries from offices and distributors in the United States, Europe, Japan, China and other Asian locations. Candela established the aesthetic laser market 18 years ago, and currently has an installed base of 10,000 lasers worldwide. Candela is an Equal Opportunity and Affirmative Action Employer (Male/Female/Handicapped/Veteran). Visit Candela on the Web at

Safe Harbor Statement: Except for the historical information contained herein, this news release contains forward-looking statements that constitute Candela's current intentions, hopes, beliefs, expectations or predictions of the future, which are therefore inherently subject to risks and uncertainties. Such statements may relate to, among other things, our future revenue, gross margin, expense levels and earnings, our growth prospects, market acceptance of our products, the strength of our distribution channels, our ability to add new products, our ability to expand regulatory approvals and the liquidity of our common stock. The risks and uncertainties that may affect forward-looking statements include, among others: the cancellation or deferral of customer orders, the risk of an adverse judgment in the patent litigation with Palomar Medical Technologies, Inc., (PMTI), dependence on a small number of strategic distribution relationships, difficulties in the timely development and market acceptance of new products, unanticipated increases in expenses, market developments that vary from the current public expectations concerning the growth of the laser industry, increased competitive pressures, changes in economic conditions, or difficulties in obtaining timely regulatory approvals. Further information on factors that could affect Candela's performance is included in Candela's periodic reports filed with the SEC, including but not limited to, Candela's Annual Report on Form 10-K for the year ended July 1, 2006, and subsequent Quarterly Reports on Form 10-Q. Candela cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Candela expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Candela's expectations or any change in events, conditions or circumstances on which any such statement is based.

Source: Candela

Issuer of this News Release is solely responsible for its content.
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