CANDELA REPORTS NET INCOME OF $1.1 MILLION FOR 4TH QTR.

Candela Corporation (NASDAQ:CLZR), Wayland, Mass., has reported results for the fiscal year-end and the quarter ending June 30, 2001.

The company reported that revenues for the quarter were $18.2 million. Net income, not including special non-cash charges, was $1.1 million. For the same period a year earlier, the company reported revenues of $22.4 million, and net income of $4.9 million.

During the quarter, the company took special non-cash charges of $1,113,000 for continuing lease liabilities arising from its discontinued Scottsdale spa operations, and $640,000 for asset impairments in its Boston spa. Income after special charges was a $43,000 loss for the quarter, and income of $2.5 million for the year, or $0.00 EPS for the quarter and $0.22 for the fiscal year.

For the full year, the company reported sales of $64.8 million and net income, not including special non-cash charges, of $3.7 million ($0.32 EPS). A year earlier, the company had revenues of $75.4 million and net income of $14.6 million ($1.19 EPS).

Commenting on the quarter, Gerard E. Puorro, Candela's president and CEO said: "We started the year with a sluggish $28 million first half, but grew the second half to $37 million. Our goal is to return to a sustainable growth path." Puorro added: "We are confident we will, but believe it may be 2 or 3 quarters before we can achieve our goal."

About Candela

Candela Corporation develops, 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 50 countries from offices in the United States, Europe, Japan and Asia. Candela established the aesthetic laser market 12 years ago, and currently has an installed base of over 4,000 lasers worldwide. Candela is an Equal Opportunity and Affirmative Action Employer, M/F/H/V.

For more information, visit http://www.clzr.com or call 508-358-7400 x435.