Candela Enters Exclusive Agreement with Ideal Image; Candela's GentleLASE and GentleYAG lasers to debut in leading laser hair removal franchise.

WAYLAND, Mass. -- Candela Corporation (NASDAQ: CLZR) today announced that it has signed an exclusive long-term agreement with Ideal Image to supply the laser hair removal franchise with its GentleLASE(R) and GentleYAG(R) lasers. Specializing in laser hair removal, Ideal Image has over 30 franchises throughout the United States and Australia. The agreement calls for the placement of 300 lasers in new clinics over the next two years. Last year, over 1.4 million Americans received a laser hair removal treatment and, as an increasing number of Americans are turning to lasers to remove unwanted hair, Ideal Image seeks to open even more franchises featuring Candela's premier lasers for hair removal.

"We are proud that after an extensive vendor evaluation process, the GentleLASE and GentleYAG have become the lasers of choice for the hair removal specialists at Ideal Image," said Gerard E. Puorro, Candela's President and Chief Executive Officer. "We believe that Ideal Image's experience and reputation for excellence in the laser hair removal industry is a perfect match for Candela's leading products."

"Ideal Image is a rapidly expanding world class organization specializing in bringing hair removal solutions to our guests nationwide," said Dean Akers, Chief Executive Officer at Ideal Image. "Our business is highly dependent upon patient satisfaction. Ideal Image performed multiple vendor technology comparisons, and chose the Candela GentleLASE as the preferred technology for comfortable, fast and efficacious hair removal. We are happy to have formed this partnership with Candela, another world class organization and look forward to a mutually beneficial, long-term relationship."

The GentleLASE and GentleYAG work by transforming laser energy into heat, which destroys the hair follicle leaving the surrounding skin unaffected. Depending on the size of the treatment area, a session could last from 10 minutes to an hour. Prices for the treatment will vary, but laser therapy is expected to be less costly since it may require fewer treatments compared to drug and topical skin creams, which a patient can be expected to use for years.

In addition to manufacturing the industry's leading lasers for hair removal, Candela also provides the highest quality technical and service support for practitioners. Whether it's marketing, technical, clinical or financial support that practitioners require, Candela has a team ready to meet those needs.

"One of the key factors we considered when deciding which lasers to use in our centers was customer support," said John B. Okkerse, Jr., Ph.D., Chief Operating Officer at Ideal Image. "As Ideal Image continues to grow, we feel confident that the quality products, service and support that Candela provides will help us achieve our long-term goals."

About GentleLASE:

The GentleLASE Laser effectively removes unwanted body hair without damaging the surrounding area. This laser emits a gentle beam of light that passes through the skin to the hair follicle where it impacts hair growth. The GentleLASE results in permanent hair reduction - a long-term stable reduction in the number of hairs re-growing after a treatment regime. This laser offers faster treatment times and enhanced patient comfort over previous laser machines. The GentleLASE is also less painful than waxing or electrolysis. The integrated dynamic cooling device (DCD(TM)) emits a cooling spray milliseconds before each laser pulse for increased comfort and skin preservation.

About GentleYAG:

The GentleYAG Laser is the fastest and most powerful laser on the market today for hair removal. The GentleYAG targets the hair follicle to remove unwanted body hair without damaging the surrounding area. The GentleYAG has minimal scattering of laser energy making it ideal for reducing or eliminating veins in all skin types, especially dark or tanned skin. This member of the GentleLASE Laser family facilitates treatment year round and also uses the DCD(TM).

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 64 countries from offices and distributors in the United States, Europe, Japan, China and other Asian locations. Candela established the aesthetic laser market 17 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 http://www.candelalaser.com.

About IDEAL IMAGE:

Ideal Image, the nation's fastest growing leader in laser hair removal, opened a flagship center in Tampa, Florida in 2001 and has performed more than 100,000 laser hair removal treatments. Since franchising in 2004, they have opened 30+ locations throughout Florida, in Atlanta, Las Vegas, Dallas, Knoxville, TN, Charlotte, NC, Kansas City, MO, Boise, ID and Sydney, Australia with plans to add an additional 100 locations in 2006. In addition to laser hair removal, Ideal Image also provides services for removal of spider veins, brown spots, acne and wrinkles. Ideal Image is an Equal Opportunity Employer (Male/Female/Handicapped/Veteran). Visit Ideal Image on the Web site at http://www.idealimage.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 2, 2005. 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.