US District Court for the Eastern District of Texas Denies Palomar Motion to Transfer Candela Suit - Trial Date Set.

WAYLAND, Mass. -- Candela Corporation (NASDAQ: CLZR), a global leader in the development and commercialization of advanced aesthetic laser and light-based systems, announced today that the United States District Court for the Eastern District of Texas, Lufkin Division, denied the motion of Palomar Medical Technologies, Inc. (NASDAQ: PMTI) to transfer Candela's lawsuit against Palomar from the Lufkin court to the United States District Court for the District of Massachusetts.

On December 19, 2006, Candela filed a patent infringement complaint against Palomar Medical Technologies, Inc. (NASDAQ: PMTI) in the United States District Court for the Eastern District of Texas, Lufkin Division, asserting that Palomar's 1540 Fractional[TM] and Lux Y[TM] handpieces willfully infringe upon one or more of United States patents: 5,810,801, 6,659,999 and 6,120,497.

"We are very happy that the Court in Lufkin has proposed that the case be ready for trial on July 14, 2008", said Gerard Puorro, Candela's President and CEO. He continued, "The Court's decision is an important one for Candela since we believe that it will lead to a speedier trial than if the case had been transferred, and it affords us the opportunity to continue to seek, in the forum we chose, our desired remedies of compensatory and treble damages payable by Palomar due to its willful infringement and, most importantly, an injunction against Palomar's sale of all infringing handpieces.

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 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. 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.