PMTI Palomar Medical Technologies, Inc. (MM)

Palomar Receives $2.5 Million Contract From US Army Medical Department Palomar to develop a light-based self-treatment device for a dermatological problem currently compromising the effectiveness of a significant portion of military personnel BURLINGTON, Mass., Feb. 18 /PRNewswire-FirstCall/ -- Palomar Medical Technologies Inc today announced that it has been awarded a $2.5 million research contract by the Department of the Army to develop a light-based self-treatment device for Pseudofolliculitis Barbae ("PFB"). The project begins on February 23, 2004 and is scheduled to last for nineteen months, through September 22, 2005. PFB, commonly known as "razor bumps", has been called "the most significant dermatologic disease in the US Army"; affecting combat readiness, unit cohesion, and individual morale of over 50% of African American and Hispanic military personnel. The importance of a solution to the PFB problem is increasing along with the changing demographics of the military; the percentageof African-Americans and Hispanics in the services is currently twice that in the civilian population and growing. This contract is awarded by the Department of Defense Peer Reviewed Medical Research Program (PRMRP) of the Office of the CongressionallyDirected Medical Research Programs (CDMRP) to private and public organizations having demonstrated capability in solving "Military Relevant" medical problems. In commenting on the impact of the PFB award, Dr. Michael Smotrich, Palomar's Chief Technical Officer said, "Over the past six years, Palomar has invested in the development of technology necessary for the realization of a compact, safe, cost effective, self-treatment light-based system having applications in dermatology. The PFB program is anideal extension of this technology to address a military problem. We are honored to have been selected to assist our armed forces through this award." This work is supported by the U.S. Army Medical Research and Material Command under Contract No. W81XWH-04-C-0069. The views, opinions and/or findings contained in this report are those of Palomar and should not be construed as an official Department of the Army position policy or decision unless so designated by other documentation. About Palomar Medical Technologies Inc: Palomar is a leading researcher and developer of light-based systems for hair removal and other cosmetic treatments. Last year, Palomar and The Gillette Company (NYSE:G) entered into an agreement to complete development and commercialize a patented home-use, light-based hair removal device for women. New and exciting indications are being tested to further advance the hair removal market and other cosmetic applications. Palomar pioneered the optical hair removal field, when, in 1997, it introduced the first high-powered laser hair removal system. Since then, many of the major advances in light-based hair removal have been based on Palomar technology. There are now millions of light-based cosmetic procedures performed around the world every year in physician offices, clinics, spas and salons. For more information on Palomar and its products, visit Palomar's website at http://www.palomarmedical.com/. To continue receiving the most up-to-date information and latest news on Palomar as it happens, sign up to receive automatic e-mail alerts by going to the E-mail Alerts page in the Investor Relations' section of the website. With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements, including but not limited to statements relating to new markets, development and introduction of new products, and financial projections that involve risk and uncertainties that may individually or mutually impactthe matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements. These risk factors include, but are not limited to, results of future operations, technological difficulties in developing or introducing new products, the results of future research, lack of product demand and market acceptance for current and future products, the effect of economic conditions, challenges in managing joint ventures and research with third parties, the impact of competitive products and pricing, governmental regulations with respect to medical devices, including whether FDA clearance will be obtained for future products, the results of litigation, difficulties in collecting royalties, potential infringement of third-party intellectual property rights, and/or other factors, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2002 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Contacts: Paul S. Weiner Chief Financial Officer Palomar Medical Technologies Inc 781-993-2411 DATASOURCE: Palomar Medical Technologies Inc CONTACT: Paul S. Weiner, Chief Financial Officer of Palomar Medical Technologies Inc, +1-781-993-2411, Web site: http://www.palomarmedical.com/ Company News On-Call: http://www.prnewswire.com/comp/107555.html

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