BIOLASE Reports 26% Year-Over-Year Sales Increase and Breakeven Net Income for the First Quarter of 2008

BIOLASE Technology, Inc. (NASDAQ: BLTI), the world's leading dental laser company, today reported operating results for its first quarter ended March 31, 2008.

Net revenue for this year's first quarter was $19.0 million, up approximately 26 percent from $15.1 million in last year's first quarter. Gross profit for the first quarter of 2008 increased $1.4 million, however, gross margin as a percentage of sales decreased to 50 percent of net revenue as compared with 54 percent of net revenue in the same period of 2007. Operating expenses in this year's first quarter were $10.1 million compared to operating expenses of $10.0 million in the first quarter of 2007. Net income for the first quarter of 2008 was $26,000, or $0.00 per diluted share, compared with a net loss of $1.7 million, or $0.07 per diluted share, in the same period of 2007.

The improvement in gross profit dollars of $1.4 million was driven by a $2.1 million volume increase offset by $360,000 discounts on demonstration equipment sales, an increase in symposium costs of $295,000 and other components netting to approximately $45,000. Operating expenses remained relatively constant in the first quarter of 2008 compared to the first quarter of 2007 and declined from $12.4 million in the fourth quarter of 2007, which included $802,000 of restructuring expense. Other income increased $461,000 including a gain on foreign currency of $616,000 in the first quarter of 2008 compared to a gain of $53,000 in the same quarter of 2007.

BIOLASE Chief Executive Officer Jake St. Philip said that the first quarter showed solid progress as top and bottom line improvements were substantial as compared to last year's corresponding period. "This is the first time we have reported a quarterly profit in the past four quarters, and while nominal, we believe it is a sign of the operational progress we are making," St. Philip said. "We view this quarter as a solid foundation for the year. We are pleased with the operational improvements we are making as well as domestic sales performance. We will continue to focus on international performance and strengthening our global organization for stable growth and performance in the future."

As of March 31, 2008, the balance sheet showed cash and cash equivalents of $13.9 million, total assets of $41.7 million and total stockholders' equity of $17.3 million.

Conference Call

As previously announced, the Company will host a conference call today at 4:30 p.m. Eastern Time to discuss its operating results for the first quarter ended March 31, 2008 and to answer questions. Slides will be used during this call. Directions for accessing the slides can be found below.

Phone Participation

To listen to the conference call live via telephone, please dial 1-800-762-8908 from the U.S. or, for international callers, please dial +1-480-248-5085, approximately 10 minutes before the start time. In order to access the slides that will be used on the call, click on the link provided on the Investors section of the BIOLASE website at www.biolase.com to listen to the event, register and select the "No Audio, Slides Only" option.

Webcast Participation

To listen to the conference call live and view the slide presentation via the Internet, visit the Investors section of the BIOLASE website at www.biolase.com . Please go to the website 15 minutes prior to the call to register, download and install the necessary software.

Replay

A telephone replay will be available for two days by dialing 1-800-406-7325 from the U.S., or +1-303-590-3030 for international callers, and entering passcode number 3870691. In addition, a replay will be available on BIOLASE's website.

About BIOLASE Technology, Inc.

BIOLASE Technology, Inc. ( http://www.biolase.com ), the world's leading dental laser company, is a medical technology company that develops, manufactures and markets lasers and related products focused on technologies that advance the practice of dentistry and medicine. The Company's products incorporate patented and patent pending technologies designed to provide clinically superior performance with less pain and faster recovery times. BIOLASE's principal products are dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. Other products under development address ophthalmology and other medical and consumer markets.

This press release may contain forward-looking statements within the meaning of safe harbor provided by the Securities Reform Act of 1995 that are based on the current expectations and estimates by our management. These forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," and variations of these words or similar expressions. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks, uncertainties and other factors which may cause the Company's actual results to differ materially from the statements contained herein, and are described in the Company's reports it files with the Securities and Exchange Commission, including its annual and quarterly reports. No undue reliance should be placed on forward-looking statements. Such information is subject to change, and we undertake no obligation to update such statements.