Cynosure Reports 41% Revenue Increase: 10th Consecutive Quarter of Reve...(treatment of stock-based compensation .....)

these non-GAAP measures should not be relied upon independently as they

ignore the contribution to our operating results that is generated by the

incentive and compensation effects of the underlying stock-based

compensation programs.

Cynosure's management believes that these non-GAAP financial measures

provide meaningful supplemental information regarding our performance by

excluding certain expenses and expenditures that may not be indicative of

our core business operating results. Cynosure believes that both

management and investors benefit from referring to these non-GAAP

financial measures in assessing Cynosure's performance and when planning,

forecasting and analyzing future periods. These non-GAAP financial

measures also facilitate management's internal comparisons to Cynosure's

historical performance and our competitors' operating results. Cynosure

believes that these non-GAAP measures are useful to investors in allowing

for greater transparency with respect to supplemental information used by

management in its financial and operational decision making.

Reconciliation of GAAP Income Statement Measures to Non-GAAP Income

Statement Measures

(In thousands, except per share data)

Three Months Ended March 31,

2008 2007

(unaudited)

Gross profit $24,392 $16,155

Non-GAAP adjustments to gross profit:

Stock-based compensation 129 98

Total Non-GAAP adjustments to gross profit 129 98

Non-GAAP Gross profit $24,521 $16,253

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