Candela Files Requests for Re-Examination of Palomar Hair Patents.

WAYLAND, Mass. -- Candela Corporation (NASDAQ: CLZR) announced today that it has filed two requests for re-examination with the United States Patent & Trademark Office ("PTO"). One is for U.S. Patent Number 5,595,568 (the " '568 patent") and the second is for U.S. Patent Number 5,735,844 (the " '844 patent"). Palomar Medical Technologies, Inc. ("Palomar") is the exclusive licensee of the patents, which are the subject of Palomar's patent infringement lawsuit brought against Candela on August 9, 2006 in the United States District Court for the District of Massachusetts. As Candela previously announced on November 18, 2008, the lawsuit is currently stayed.

The Company has specifically sought re-examination of claims 1-3, 6-8, 12-14, 17, 19, 20, 27, 28, 30, and 32 of the '844 patent, and claims 1, 3-10, 13, 14, 18-21 of the '568 patent. These claims include all of the claims Palomar has alleged that Candela infringes. The '568 and '844 patents are already being re-examined by the PTO based on requests filed by a third party.

"We remain resolute in our belief that the patents are invalid, and are hopeful that the PTO will find the claims unpatentable and cancel them", stated Gerard E. Puorro, President and Chief Executive Officer. He continued, "Now that the re-examination has been filed, and due to the stay in the lawsuit, we expect a precipitous drop in our legal expenses while we work to restore profitability to the Company."

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, Candela markets and services its products in 86 countries from offices and distributors in the United States, Europe, Japan, China and other Asian locations. Candela established the aesthetic laser market 20 years ago, and currently has an installed base of over 13,500 systems worldwide. 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 Corporation's current intentions, hopes, beliefs, expectations or predictions of the future, which are therefore inherently subject to risks and uncertainties. These statements include declarations regarding our or our management's beliefs and current expectations. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms or other comparable terminology. These forward-looking statements are subject to inherent risks and uncertainties in predicting future results and conditions that could cause the actual results to differ materially from those projected in these forward-looking statements. The risks and uncertainties that may affect forward-looking statements include, among others: the availability of, and our ability to successfully implement strategic and operational alternatives, the pendency of re-examinations of the '844 Patent and the '568 Patent before the PTO, our alleged infringement of the '844 Patent and the '568 Patent, the validity of the '844 Patent and the '568 Patent, our expected legal expenses, our exploration of strategic and operational alternatives, the expected recovery of our industry, 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 cancellation or deferral of customer orders, the risk of a material adverse judgment or increased litigation-related expenses in pending litigation matters, 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. 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.