Laser Industries Ltd. enters hair removal market with strong patent position

Business Wire, Dec 27, 1995

TEL AVIV, Israel--(BUSINESS WIRE)--Dec. 27, 1995--Laser Industries Ltd. (AMEX: LAS), a leading international producer of surgical laser systems and accessories, today announced that it is entering the lucrative field of laser hair removal by forming a new Joint Venture Company with Classy Lady By Mehl of Puerto Rico Inc.

The Joint Venture Company was granted a license from Classy Lady to U.S. Patent 5,095,192, a broad patent, covering laser hair removal technologies, and to additional intellectual property in this field. The patent was exclusively licensed to Classy Lady by the inventor, Dr. Nardo Zaias, a dermatologist based in Miami Beach, Florida.

Under the agreement entered into between Laser Industries and Classy Lady, the new venture will aim to capitalize on the tremendous potential of the application of hair removal by lasers. Classy Lady is permitted to enter into not more than one additional license arrangement with a financial partner. The joint venture will also be entitled to a license for lasers which may be developed by the other licensee.

The Joint Venture will be managed and run by Laser Industries which will appoint the entire board of directors as well as the executive officers. Ownership of the Joint Venture Company will be equally held by Laser Industries and Classy Lady.

The annual U.S. hair removal market is estimated to exceed one billion dollars. Among the companies who plan to participate in this burgeoning market with laser techniques are Thermolase Corporation (AMEX: TLZ, Market Capitalization approximately $900 million) and Palomar Medical Technologies Inc. (NASDAQ: PMTI, Market Capitalization approximately $80 million).

Classy Lady announced on December 18, 1995 that it had entered into a definitive merger agreement with Selvac Corporation (NASDAQ: SLVC) who will succeed to all of Classy Lady's rights upon completion of their merger. Selvac will be renamed Mehl Biophile International Corporation.

Benjamin Givli, Chairman and CEO of Laser Industries commented: "Our entrance into the field of laser hair removal is a natural move for our Company, being a leader in the field of lasers for aesthetic applications. We believe that our Company's ability to introduce state-of-the-art laser products to the market together with the intellectual property and patent protection offered by the Zaias Patent, should give us a very strong edge in this promising area."

CONTACT: Yacha Sutton, President and COO Robert Rinderman

Hadar Solomon, Vice President The Anne McBride Co.

Laser Industries Ltd. Tel. 212-752-0504

Tel. +972-3-645-4545