Candela Announces Exclusive Distribution Agreement With McKesson; Leading Distributor to Sell Candela Laser and Light-Based Products to Family Practice Market.

WAYLAND, Mass. -- Candela Corporation (NASDAQ: CLZR) today announced that it has signed an exclusive three-year agreement with McKesson Medical-Surgical Inc. ("McKesson") for distribution of the Company's full aesthetic laser and light-based line of products. McKesson is a leading distributor and service provider to the family and general practice market in the United States. The agreement will become effective beginning November 1, 2005.

"We are very excited and pleased to have McKesson Medical-Surgical represent Candela's full line of aesthetic products in the emerging family and general practice market," said Gerard E. Puorro, Candela's President and Chief Executive Officer. "We believe that McKesson's experience, relationships and outstanding reputation in the U.S. medical device marketplace will enhance our success in reaching this new specialty and we are looking forward to working with the McKesson team to meet our respective goals."

Puorro went on to say: "We will continue to grow our direct sales force in all of our other markets to further expand our position as the market share leader."

Today, an increasing number of family practitioners are incorporating aesthetic medicine into their practices as an effective way to diversify and generate additional revenue. In addition to plastic surgeons, dermatologists and cosmetic surgeons, over 60,000 family practitioners in the U.S. are now providing cosmetic services to their patients.

Within the agreement, McKesson will be distributing the GentleLASE(R) and the GentleYAG(R), both of which provide hair removal treatments and skin rejuvenation; the Smoothbeam(R), used for the treatment of acne, acne scars and wrinkles; the Vbeam(R), which provides treatment of all vascular lesions and skin rejuvenation; the ALEXLAZR(TM), used for the removal of tattoo pigments; and the Ellipse I2PL(TM) which provides skin rejuvenation and treatment for facial redness.

About Candela:

Candela Corporation, an ISO-9001 certified company, 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 64 countries from offices and distributors in the United States, Europe, Japan, China and other Asian locations. Candela established the aesthetic laser market 16 years ago, and currently has an installed base of 8,500 lasers worldwide. Candela is an Equal Opportunity and Affirmative Action Employer (Male/Female/Handicapped/Veteran). Visit Candela on the Web at www.candelalaser.com.

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, 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 3, 2004, 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.