Palomar is First Laser Company to
Receive FDA Clearance for 'Permanent Hair Reduction'

LEXINGTON, Mass., July 22, 1998 - Palomar Medical Technologies, Inc. (NASDAQ: PMTI), the technology leader in laser hair removal, today announced that it is the first laser company to receive clearance from the United States Food and Drug Administration (FDA) to market a hair removal laser for "permanent hair reduction." The FDA clearance is granted specifically for the company's EpiLaser® system.

"The achievement of 'permanent hair reduction' sets us apart from all other competitive laser technologies currently on the market," said Louis P. (Dan) Valente, chairman and chief executive officer of Palomar. "We believe this FDA clearance will dramatically increase consumer interest in Palomar's laser technology, and propel us to an even greater market share in this growing multi-billion dollar worldwide market."

Valente added, "As the trailblazer in innovative laser hair removal, Palomar reinforces its position as the research and development leader in the cosmetic laser industry. This clearance adds to the list of distinctions in our field that include receiving the first FDA Clearance for a high-powered ruby laser (EpiLaser) and also obtaining the first FDA clearance for a high-powered pulse diode laser. Most importantly, these technology accomplishments are now beginning to positively impact top-and bottom-line financial results."

The clearance allows Palomar to claim "permanent hair reduction" of treated hairs. To support its hair reduction claim, the company submitted results from clinical studies conducted at Massachusetts General Hospital (MGH) during the past five years. Palomar is the exclusive worldwide licensee of MGH's laser hair removal technology. Palomar's laser hair removal products are distributed exclusively by Coherent, Inc. (NASDAQ:COHR).