Candela Signs Patent Licensing Agreement with Massachusetts General Hospital.

Business Editors/Health/Medical Writers

WAYLAND, Mass.--(BUSINESS WIRE)--May 12, 2003

Candela Corporation (NASDAQ: CLZR) announced today it has entered into agreement with Massachusetts General Hospital for an exclusive, worldwide license to non-ablative laser technology jointly developed by Candela and MGH.

Gerard E. Puorro, Candela's President and Chief Executive Officer, commented: "This agreement is the culmination of a long-term collaborative research relationship between Wellman Laboratories of Photomedicine at MGH and Candela Corporation. With E. Victor Ross, M.D., now of Naval Medical Center San Diego, and R. Rox Anderson, M.D., we began to study how lasers might be used to improve the appearance of wrinkles and photoaged skin in a way that has no down-time for the patient. The research performed at Dr. Anderson's laboratory using Candela's laser technology led to the development of the Smoothbeam(TM) laser, now cleared by FDA for treatment of periorbital wrinkles as well as several other large and promising applications."

Puorro continued: "US Patent Nos. 5,810,801 and 6,120,497 describe inventions that have changed the way dermatologists treat patients with aging skin, and we are pleased that Candela's intellectual property portfolio has been strengthened as a result of this licensing agreement with MGH."

Co-inventor Dr. Anderson, Associate Professor of Dermatology, Harvard Medical School, said: "I have enjoyed working with Candela for many years, on many new ideas, starting with pulsed dye laser therapy for babies with portwine birthmarks almost 20 years ago. Candela's Smoothbeam laser came from ideas and experiments done in collaboration with Candela when Dr. E. Victor Ross was a Research and Clinical Fellow in my laboratory at Wellman Laboratories of Photomedicine, Massachusetts General Hospital. We realized that an "upside-down", mild thermal burn stimulus could potentially tighten and repair the aging dermis, without injury to the rest of skin and without the risks of laser resurfacing. Dr. Ross went on to show that technology such as this is an effective treatment for acne. It is appropriate that Candela should obtain the rights to these patents."

Co-inventor Dr. Ross, San Diego Naval Medical Center, said: "The research we have done has shown that this type of technology is ideally suited to targeting the region of the skin that is affected by sun exposure and aging processes. The 1450 nm diode laser with dynamic cooling device is a precise tool for stimulating new collagen production in the papillary dermis."

Dr. Ross further states: "In ongoing clinical research, we continue to study new indications for this versatile laser system."

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 6,000 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 29, 2002, 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.