Candela Secures Exclusive Rights to Develop Tattoo Removal Device for Freedom-2 Tattoos.

- Candela Invests in Freedom-2 to Develop First Removable Tattoo Ink -

WAYLAND, Mass. -- Nearly one quarter of adults age 18 to 50 in the United States currently have a tattoo, and almost 20 percent of those have considered removing it or covering it up. This is according to a study published in the June 2006 issue of the Journal of the American Academy of Dermatology. Following this trend, Candela Corporation (NASDAQ: CLZR) has reached an exclusive agreement with Freedom-2 to develop a new proprietary light-based device specifically designed to remove Freedom-2 ink tattoos. Freedom-2 (F2) ink technology is the first and only patented tattoo ink designed specifically for safe and easy future removal. Candela, the leading manufacturer of laser technology in the world, has also made a financial investment in Freedom-2 to further develop safe, removable inks and fund the marketing activities for Freedom-2's initial product launch.

"As the worldwide leader in the aesthetic device market for the past 37 years, Candela has the expertise required to develop the next generation of tattoo removal devices," said Gerard E. Puorro, Candela's President and Chief Executive Officer. "As procedures for tattoo removal become one of the fastest growing areas in the aesthetic industry, Candela is in a unique position to partner with Freedom-2 and its prestigious research team in the development of safe and effective tattoo removal options for both patients and practitioners."

Freedom-2 tattoo ink will offer a safer alternative for those seeking to get a tattoo. While conventional tattoo inks may contain toxic substances and are not regulated by the Food and Drug Administration, Freedom-2 ink is made with safe, biodegradable dyes. Furthermore, Freedom-2 allows individuals to change their minds with one pass of a specially designed Candela laser.

Candela currently manufactures the AlexLAZR[R] which is world renowned for effectively removing black, blue and green tattoo pigments. The NEW AlexTriVantage[TM] laser, to be introduced at the American Academy of Dermatology Conference, February 3-5, 2007, removes an even wider range of tattoo colors. Currently, there are few options for people who want to get rid of their tattoos. Other techniques such as dermabrasion, cryosurgery and excision are extremely invasive and usually result in scarring. By contrast, laser tattoo removal represents a more effective method of tattoo removal because of its effectiveness and low risk of scarring. Candela's AlexTriVantage[TM] currently removes tattoos by penetrating the skin with light and fragmenting the tattoo pigment. Once the tattoo ink is broken up, the tiny particles of tattoo ink are removed from the skin by the body's normal processes. Freedom-2 inks will be specifically designed to react to the Candela removal device, dramatically improving the responsiveness of the ink, and resulting in Freedom-2 ink tattoo removal in a single treatment.

To learn more, visit www.candelalaser.com or call 1-800-821-2013.

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 70 countries from offices and distributors in the United States, Europe, Japan, China and other Asian locations. Candela established the aesthetic laser market 18 years ago, and currently has an installed base of 10,000 lasers worldwide. Candela is an Equal Opportunity and Affirmative Action Employer (Male/Female/Handicapped/Veteran). Visit Candela on the Web http://www.candelalaser.com.

About Freedom-2, LLC: Founded in 1999, Freedom-2, LLC (F2) is a pioneer in the development of safe, quality inks for the purpose of permanent but removable tattoos and permanent cosmetics. The Freedom-2 ink technology, co-discovered by R. Rox Anderson, M.D., Wellman Center for Photomedicine at the Massachusetts General Hospital, Craig A. Drill, Susanna Mlynarczyk-Evans, Ph.D., UC-San Francisco, Bruce Klitzman, Ph.D. and Kim Edward Koger, M.D., F.A.C.S., of Duke University, is the first and only patented ink designed specifically for safe and easy, future removal. Freedom-2, LLC is a privately held, pre-commercial company with initial funding from private investors. For more general information about the company log onto www.freedom2ink.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, the risk of an adverse judgment in the patent litigation with Palomar Medical Technologies, Inc., (PMTI), 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 1, 2006, 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.