Cutera(R) Reports Third Quarter 2008 Results.

* $2.9 Million Cash Generated From Operations

* Launched New Fractionated Product

BRISBANE, Calif. -- Cutera, Inc. (NASDAQ: CUTR), a leading provider of laser and other light-based aesthetic systems for practitioners worldwide, today reported financial results for the third quarter ended September 30, 2008.

Third quarter 2008 revenue was $19.1 million, compared to $28.1 million in the same period last year. Net loss for the third quarter of 2008 was $2.8 million, or $0.22 per diluted share, compared to net income of $3.1 million, or $0.22 per diluted share, in the third quarter of 2007. The third quarter of 2008 included a $2.4 million, or $0.19 per diluted share, impairment charge associated with the company's investment in auction rate securities. Also during the third quarter of 2008, Cutera generated $2.9 million of cash from operations. As of September 30, 2008, the company had $109.4 million in cash, cash equivalents, marketable and long term investments - with no debt.

"We have made significant progress toward our goal of reducing our operating expenses to bring them in line with current revenue levels. We took decisive action in the third quarter and reduced our operating expenses by $2.9 million, when compared to the second quarter of 2008," stated Kevin Connors, President and CEO of Cutera. "However, our revenue contraction in the third quarter was greater than expected and more than offset the expense reductions. We have the flexibility in our business model that enabled us to lower expenses quickly to respond to the lower current revenue level. We remain committed to increasing our revenue and profits and generating cash.

"International revenue for the third quarter of 2008 was down 8%, when compared to the third quarter of 2007. When measured on a nine month year-to-date comparison, our international revenue grew 18%, when compared to the same period in 2007. We made significant investments in building our strategic global infrastructure, and even with the current economic uncertainty affecting certain regions, we expect to continue our path of long-term overall international growth.

"U.S. revenue for the third quarter of 2008 was down 46%, when compared to the third quarter of 2007. We believe this decline was primarily the result of physicians delaying their purchase decisions during this challenging economic period. Also, we started shipping our new Pearl Fractional product at the end of the quarter. In contrast, the third quarter of 2007 had significantly higher upgrade revenue for our Pearl product which started shipping earlier in that year."

He continued, "We are excited about the recent introduction of our new Pearl Fractional product, and are optimistic about the long-term contributions it will make as we educate the market on its features and benefits. This new application, designed to improve pronounced wrinkles by targeting the deep dermal layer, enables us to compete in the expanding fractional ablative market. The clinical results for this application are continuing to exceed our expectations."

Mr. Connors concluded, "While the near-term prospects for our industry are difficult to predict due to economic uncertainty, we believe that our diverse global infrastructure, solid cash position, strong portfolio of products, and various development projects underway offer continuing, long-term opportunities for our company."

Conference Call:

The conference call to discuss these results is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET) on November 3, 2008. The call will be broadcast live over the Internet hosted at the Investor Relations section of Cutera's website at www.cutera.com, and will be archived online within one hour of its completion and continue through 8:59 p.m. PT (11:59 p.m. ET) on November 17, 2008. In addition, you may call 1-800-762-8908 to listen to the live broadcast. Participating in the call will be Kevin Connors, President and Chief Executive Officer, and Ron Santilli, Chief Financial Officer.

About Cutera, Inc.

Brisbane, California-based Cutera is a leading provider of laser and other light-based aesthetic systems for practitioners worldwide. Since 1998, Cutera has been developing innovative, easy-to-use products that enable physicians and other qualified practitioners to offer safe and effective aesthetic treatments to their patients. For more information, call 1-888-4CUTERA or visit www.cutera.com.

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning Cutera's ability to grow its business, increase revenue, manage expenses, generate additional cash, return to profitability, develop and commercialize existing and new products and applications, and improve the performance of its worldwide sales and distribution network and outlook regarding long-term prospects are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Cutera's actual results to differ materially from the statements contained herein. Potential risks and uncertainties that could affect Cutera's business and cause its financial results to differ materially from those contained in the forward-looking statements include the global economic crisis, which may reduce consumer demand for its products, cause potential customers to delay their purchase decisions and make it more difficult for some potential customers to obtain credit financing; its ability to increase revenue, manage expenses and improve sales productivity and performance worldwide; its ability to successfully develop and acquire new products and applications and market them to both its installed based and new customers; the length of the sales cycle process; unforeseen events and circumstances relating to its operations; government regulatory actions; and those other factors described in the section entitled, "Risk Factors," in its most recent Form 10-Q as filed with the Securities and Exchange Commission on November 3, 2008. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Cutera undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events. Cutera's third quarter September 30, 2008 financial performance, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

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