Photo Therapeutics Enters Consumer Market with N.V. Perricone MD

Business Wire, Sept 19, 2008

CARLSBAD, Calif. -- Photo Therapeutics (PTL), a leader in the development of proprietary therapeutic LED technology for the physician dermatology market, announced today with PhotoMedex, Inc. (NASDAQ: PHMD) that, thanks to N.V. Perricone MD., Ltd., its Omnilux LED-based technology has made its debut to the consumer market.

N.V. Perricone M.D. launches LIGHT Renewal[TM]

N.V. Perricone M.D. Cosmeceuticals[R] has introduced LIGHT Renewal[TM] treatment to the prestige beauty market. This treatment was developed in conjunction with Photo Therapeutics and combines PTL's Omnilux technology with Dr. Perricone's Nourishing Milky Cleanser and Serum prep to ensure the skin is properly prepared and ready to receive the benefits of this light technology in a dermatological-grade unit that softens fine lines and wrinkles, while improving the appearance of the skin's tone, texture and firmness. Two clinical trials - one lasting 12 weeks, one lasting nine weeks - showed effectiveness in rejuvenating skin and reducing fine lines and peri-orbital wrinkles.

"We are excited to be joining forces with Perricone MD Cosmeceuticals, one of the most reputable and fastest growing skin care lines in the world," said Sue D'Arcy, Chief Executive Officer of Photo Therapeutics. "We believe there is a dynamic synergy between our LED Light Therapy technology and Perricone MD Cosmeceuticals that will deliver exceptional results." Perricone skincare products are sold in many high-end skincare outlets such as Sephora, Nordstrom and Bloomingdale's.

Additionally, Photo Therapeutics is taking final steps to introduce its Omnilux New-U[TM] to the home-use market. This FDA-cleared, hand-held device is being made available in a major retailer's outlets across the country.

Photo Therapeutics has announced its intent to be acquired by PhotoMedex, Inc., leaders in medical laser treatments for psoriasis and other skin diseases and marketers of skincare products to dermatologists. This union is expected to spur further investment in the research, development and marketing of Photo Therapeutics' LED and light-based therapies under PhotoMedex to complement therapies in the medical, beauty and cosmetic fields. Ms. D'Arcy stated: "It makes perfect sense to team up with PhotoMedex. Working together, we can answer the demand in this emerging market."

About the Proposed Photo Therapeutics Acquisition

On August 4, 2008 Photo Therapeutics and PhotoMedex signed a definitive agreement for PhotoMedex to acquire Photo Therapeutics. The proposed acquisition is expected to close in the fourth quarter of 2008 and is expected to be funded through an investment of convertible debt provided by a third-party investment fund. PhotoMedex will seek approval from its stockholders for the investment; the shareholders of Photo Therapeutics have already ratified the definitive agreement and the terms proposed for financing the acquisition.

About Photo Therapeutics

Photo Therapeutics is a developer and provider of non-laser light devices and associated skin care products for the treatment of a range of clinical and aesthetic dermatological conditions. The company operates out of three primary business segments: Professional Devices, Home Use Devices and Skin Care Consumables. The company has a large professional installed base in physician offices, spas and salons. Photo Therapeutics' Omnilux and Lumiere product platforms have generated significant brand equity among professionals and end users given their proven efficacy, ease of use and noninvasive, pain-free regimes. The company's systems treat a wide range of dermatological conditions including acne, photodamage, skin rejuvenation, psoriasis, post-surgery wound healing and non-melanoma skin cancer.

LED technology is based on photo biomodulation and dynamics rather than photo-thermolysis. Photo Therapeutics has recently developed the Omnilux Clear-U and Omnilux New-U, two OTC consumer products addressing the acne and skin rejuvenation markets. The company's home-use products are designed to deliver the same clinical results as their well established professional products. To augment the effects of the Omnilux OTC product line, Photo Therapeutics provides a diverse line of photoceuticals, which generate incremental recurring revenue per end user. Photo Therapeutics' LED technology is protected by 18 patents and 20 applications, which the company believes will restrict other parties from developing similar products.

About PhotoMedex

PhotoMedex offers a wide range of products and services across multiple specialty areas, including dermatology, urology, gynecology, orthopedics and other surgical specialties. PhotoMedex is a leader in the development, manufacturing and marketing of medical laser products and services. PhotoMedex also develops and markets products based on its patented, clinically proven Copper Peptide technology for skin health, hair care and wound care. PhotoMedex sells directly to dermatologists, plastic and cosmetic surgeons, spas and salons and through licenses with strategic partners into the consumer market, including a long-term worldwide license agreement with Neutrogena(R), a Johnson & Johnson company. ProCyte brands include Neova(R), Ti-Silc(R), VitalCopper(R), Simple Solutions(R) and AquaSante(R).