ESC Launches Robotic Laser Microsurgery Device At American Academy of Otolaryngology.

Business & Medical Editors

YOKNEAM, Israel--(BUSINESS WIRE)--Sept 27, 2000

ESC Medical Systems (NASDAQ: ESCM) today announced the introduction of the AcuBlade laser system, a revolutionary laser providing robotic capabilities for microsurgery. This new generation in laser systems combines a computerized laser scanning system with an operating microscope to enable physicians to provide highly uniform incisions with reduced operating time and significant precision and safety enhancements. For example, use of the AcuBlade system for vocal cord surgery accelerates healing time and diminishes the occurrence of complications.

Professor Marc Remacle, a leading larynx specialist and Professor of Medicine at Mont Godinne Hospital in Yvoir, Belgium, presented the results of clinical studies conducted with AcuBlade at the American Academy of OtoLaryngology (AAO) in Washington, D.C. He said: "AcuBlade represents a leap forward in the treatment of vocal cord diseases, including nodules, polyps and cysts.

"The precise linear incision capabilities and shaped cutting introduced with AcuBlade enable us to successfully treat these ailments without injuring the vocal ligaments, which cause major changes in a person's voice. Our clinical work shows close to a 50% reduction of operating time with dramatic simplification of the procedure," he concluded.

"We are very excited about the entry of ESC Medical into robotics laser surgery," commented Yacha Sutton, President and CEO of ESC Medical. "AcuBlade is yet another example of our innovative spirit and ability to bring to market technologies which complement market needs and our own resources. The ENT market is our most important surgical specialty, and we are committed to continuing our long tradition of leadership and innovation in this area. We are also proud to have been able to design the product as an upgrade to the many thousands of Sharplan CO2 lasers installed in hospitals worldwide, continuing our policy of providing customer growth paths. Based on the enthusiastic reception AcuBlade is receiving at the AAO, we expect this to become the treatment modality of choice around the world. We also expect to be able to apply robotic microsurgery technology to other applications, including aesthetic surgery. Upgrades of this kind to our surgical installed base, represent a potential high margin revenue growth area in this traditionally stable market."

ESC Medical Systems develops, manufactures and markets medical devices utilizing state-of-the-art proprietary intense pulsed light source and laser technology. Its systems are used in a variety of aesthetic, surgical and medical applications, including the non-invasive treatment of veins and other benign vascular lesions, pigmented lesions, hair removal and skin rejuvenation, as well as ENT, OB/GYN and neurosurgery. For more information about the Company, and its products log on to www.escmed.com.

The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties as well as other risks detailed from time to time in the reports filed by ESC Medical with the SEC, including annual reports on Form 10-K for the year ended December 31, 1999 and reports on Form 10-Q.