PMTI Palomar Medical Technologies, Inc. (MM)

Palomar Receives Positive Ruling in Markman Hearing in Patent Infringement Action Against Cutera BURLINGTON, Mass., March 1 /PRNewswire-FirstCall/ -- Palomar Medical Technologies Inc today announced that the United States District Court for the District of Massachusetts issued a "Markman" ruling Friday, February 27, 2004 in the ongoing patent infringement action between Palomar and Cutera, Inc. (formerly Altus Medical Inc.). The ruling represents a major step in Palomar's efforts to enforce its patent portfolio and will have considerable impact on the case as it proceeds toward trial. If Palomar prevails at trial, Cutera may be ordered to pay millions in damages for past sales and may also be ordered to stop selling any products that perform hair removal. In the ruling, the District Court largely embraced Palomar's position, finding for Palomar on critical issues dealing with U.S. patent 5,735,844. The ruling arises from a Markman Hearing, where both sides presented their arguments to the Court on the interpretation of the patent claims at issue. The Markman ruling establishes the scope of the patent claims and how the patent terms should be constructed or defined. A copy of the Court's Markman Order is available at: http://pacer.mad.uscourts.gov/recentopinions.html. The legal precedent from a Markman Hearing can be determinative of the outcome at trial on issues of validity and infringement of patents. For example, the District Court ruled in favor of Palomar over Cutera that one of the patent claims at issue does not require contact between the hair removal device and the skin. Chief Executive Officer Joseph P. Caruso commented, "We are very pleased with the Court's interpretation of the scope of the claims we are asserting against Cutera. We believe the Judge's claim construction ruling is a clear win for Palomar." General Counsel Patricia A. Davis, a registered patent attorney, commented, "The Court's ruling validates our belief not only in the strength of this patent but also in the corresponding family of patents. The family of patents associated with U.S. Patent 5,735,844 includes another U.S. patent 5,595,568, a European patent EP 0 806 913 B1 and additional corresponding foreign patent applications. Palomar has also beennotified that a second European Patent will be granted and, like the patent at issue, includes claims that cover Cutera's products." Palomar currently sub-licenses two competitors to this patent family for a 7.5% royalty on their products. In addition, Palomar has filed a claim against Lumenis, Inc. for patent infringement of both U.S. patents 5,595,568 and 5,735,844 in the United States District Court for the Northern District of California. 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 impact the 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, Palomar Medical Technologies Inc, +1-781-993-2411, Web site: http:/// http://www.palomarmedical.com/ Company News On-Call: http://www.prnewswire.com/comp/107555.html

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