BURLINGTON, Mass., Aug. 10 /PRNewswire-FirstCall/ -- Palomar Medical
Technologies, Inc. (Nasdaq: PMTI), a leading researcher and developer of
light-based systems for cosmetic treatments, announced that yesterday it filed
a lawsuit in the U.S. District Court for the District of Massachusetts against
Candela Corporation (Nasdaq: CLZR) for patent infringement. In this lawsuit,
Palomar has accused Candela's light-based hair removal systems, including the
GentleLase and GentleYag, of infringing U.S. Patent No. 5,735,844 ("the '844
Patent"). Palomar has an exclusive license to the '844 Patent from the General
Hospital Corporation in Boston, Massachusetts. The patent claims asserted
against Candela in this lawsuit include the same claims that Palomar
successfully asserted against Cutera, Inc. (Nasdaq: CUTR) as well as
additional patent claims.
Palomar is seeking an injunction against further infringement, as well as
monetary damages. If Palomar prevails at trial, Candela may be ordered to pay
tens of millions in damages for past sales and ordered to stop selling
infringing products. Palomar also alleges that Candela's activities constitute
willful infringement of the '844 Patent. If Palomar prevails on such a claim,
Candela could be forced to pay up to triple the amount of the original damages
assessment.
Patricia Davis, Senior Vice President and General Counsel of Palomar,
commented, "For over 7 years, Palomar has sent Candela letters notifying
Candela that its products need a license to the '844 Patent and offering to
grant Candela such a license. We initiated this litigation to protect our
rights only after we determined that further negotiations would not provide
positive results. The '844 Patent has been tested in two prior lawsuits and we
are confident of its strength. In Palomar's lawsuit against Cutera, the
Court's rulings, including the Markman Ruling and the Summary Judgment ruling,
confirmed the breadth and validity of the '844 Patent. We intend to continue
our strategy of vigorously enforcing our patent position against Candela, Alma
Lasers, Inc. and other infringing competitors who refuse to take a license."
Joseph P. Caruso, President and Chief Executive Officer of Palomar,
commented, "Many companies have taken advantage of the high growth of the
light-based cosmetic industry by offering products covered by the '844 Patent
and its parent U.S. Patent No. 5,595,568. Palomar intends to license such
companies or prevent continued infringement. This strategy has and should
continue to provide significant financial benefit to Palomar and its
shareholders."
About Palomar Medical Technologies, Inc.: Palomar is a leading researcher
and developer of light-based systems for cosmetic treatments. Palomar
pioneered the optical hair removal field, when, in 1997, it introduced the
first high-powered laser hair removal system. Since then, many of the major
advances in light-based hair removal have been based on Palomar technology.
There are now millions of light-based cosmetic procedures performed around the
world every year in physician offices, clinics, spas and salons. Palomar is
testing many new and exciting applications to further advance the hair removal
market and other cosmetic applications. Palomar is uniquely focused on
developing proprietary light-based technology for introduction to the mass
markets. Palomar has an agreement with The Gillette Company to develop and
potentially commercialize a patented home-use, light-based hair removal device
for women (please note that in October 2005, Procter & Gamble Company
completed its acquisition of Gillette. Under the Development and License
Agreement, Procter & Gamble, as the acquiring party, assumed all of Gillette's
rights and obligations.) Palomar also has an agreement with Johnson & Johnson
Consumer Companies to develop and potentially commercialize home-use, light-
based devices for reducing or reshaping body fat including cellulite, reducing
the appearance of skin aging, and reducing or preventing acne, and was awarded
a contract by the Department of the Army to develop a light-based self-
treatment device for Pseudofolliculitis Barbae ("PFB").
For more information on Palomar and its products, visit Palomar's website
at http://www.palomarmedical.com. To continue receiving the most up-to-date
information and latest news on Palomar as it happens, sign up to receive
automatic e-mail alerts by going to the Investor Relations' section of the
website.
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements,
including but not limited to statements relating to new markets, development
and introduction of new products, and financial projections that involve risk
and uncertainties that may individually or mutually impact the matters herein,
and cause actual results, events and performance to differ materially from
such forward-looking statements. These risk factors include, but are not
limited to, results of future operations, technological difficulties in
developing or introducing new products, the results of future research, lack
of product demand and market acceptance for current and future products, the
effect of economic conditions, challenges in managing joint ventures and
research with third parties and government contracts, the impact of
competitive products and pricing, governmental regulations with respect to
medical devices, including whether FDA clearance will be obtained for future
products and additional applications, the results of litigation, difficulties
in collecting royalties, potential infringement of third-party intellectual
property rights, and/or other factors, which are detailed from time to time in
the Company's SEC reports, including the report on Form 10-K for the year
ended December 31, 2005 and the Company's quarterly reports on Form 10-Q.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company undertakes no
obligation to release publicly the result of any revisions to these forward-
looking statements that may be made to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
Contacts: Kayla Castle
Investor Relations Manager
Palomar Medical Technologies, Inc.
781-993-2411
ir@palomarmedical.com
SOURCE Palomar Medical Technologies, Inc.
-0- 08/10/2006
/CONTACT: Kayla Castle, Investor Relations Manager of Palomar Medical
Technologies, Inc., +1-781-993-2411, ir@palomarmedical.com/
/Company News On-Call: http://www.prnewswire.com/comp/107555.html/
/Web site: http://www.palmed.com/
(PMTI CLZR CUTR)
CO: Palomar Medical Technologies, Inc.; Candela Corporation; Cutera, Inc.
ST: Massachusetts
IN: BIO HEA MTC
SU: LAW PLW
DL-CP
-- NETH002 --
6825 08/10/2006 09:30 EDT http://www.prnewswire.com
