Candela Closes Boston Spa.

Business Editors/Health/Medical Writers

WAYLAND, Mass.--(BUSINESS WIRE)--Sept. 29, 2003

Candela Corporation (NASDQ: CLZR) announced today it has permanently closed its one remaining skin care center, which was located in Boston.

The Company said that continuing and growing losses associated with the spa business unit dictated its closure. There remain approximately six years in the term of the building lease for the spa. The Company said that it would honor all of its obligations under the lease.

In order to meet its obligations under the remainder of the leasehold term, in the fiscal quarter ended September 27, 2003, the Company will record a $2,278,000 charge for accrual of $3,000,000 of future occupancy costs and $350,000 of severance obligations and other related costs of closure, net of anticipated tax benefits of $1,072,000. In addition, all prior period financial statements will be restated to reflect skin care centers operations as discontinued.

Gerard E. Puorro, Candela's President and CEO commented: "For the fiscal year ended June 28, 2003, the Boston spa lost approximately $1.5 million. This continued drain on our core laser business was unacceptable. Our attempts to find a buyer for the spa business were unsuccessful and, as such, economics dictated this course of action which we believe will save Candela millions of dollars over the remaining term of the lease." Puorro added: "Our core laser business remains vibrant, growing and profitable."

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 60 countries from offices in the United States, Europe, Japan and other Asian locations. Candela established the aesthetic laser market 14 years ago, and currently has an installed base of over 6,500 lasers worldwide. Candela is an Equal Opportunity and Affirmative Action Employer, M/F/H/V. Visit Candela on the Web at http://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. Candela's actual results could differ materially from those anticipated in Candela's forward-looking statements based on various factors, including without limitation: 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, market developments that vary from the current public expectations concerning the growth of the laser industry, increased competitive pressures, or changes in economic conditions. 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 June 28, 2003. 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.