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Cynosure Reports Record Revenues and Net Income for the Fourth Quarter of 2007

is and offers patients

an enhanced level of safety. SmartSense prevents the laser from firing

once handpiece motion stops, and allows the laser to fire again once

motion resumes. SmartSense is available now.

-- Affirm Er handpiece expands Cynosure's Affirm workstation with a 2940

nm wavelength, Erbium: YAG laser for ablative skin resurfacing

applications such as the treatment of deep lines and wrinkles. Affirm

is designed for the skin rejuvenation market, which is expected to grow

annually by 18 percent to $239 million by 2010, according to the

Millennium Research Group. Shipments of the Affirm Er laser are

expected to begin at the end of the second quarter of 2008.

"We continue to focus on introducing proprietary products that enable our customers to expand their aesthetic practices, and each of the innovations we unveiled at AAD fulfills that mission," Davin said. "Accolade creates new opportunities in the international markets where we continue to expand. SmartSense is our first offering of an intelligent delivery system, further extending our leadership position in laser lipolysis. And the Affirm Er handpiece broadens the applications of our Affirm anti-aging workstation as a complete solution to address a patient's skin rejuvenation needs."

2007 Financial Results

Revenues in 2007 increased approximately 59% to $124.3 million from $78.4 million in 2006. Net income for 2007 was $14.5 million, or $1.15 per diluted share, versus a net loss of $650,000, or $0.06 per share, in 2006.

Non-GAAP net income, which excludes stock-based compensation expense and its related income tax effects and, for 2006, expenses relating to the termination of two agreements associated with Cynosure's legacy relationship with Sona MedSpa International and a royalty settlement and their related income tax effects, was $18.3 million, or $1.44 per diluted share, in 2007 compa

SOURCE Cynosure, Inc.
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