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Thermage Announces First Quarter 2008 Financial Results
Date:5/8/2008

s since the NXT system was introduced in the first quarter of 2007. The growth in upgrades demonstrates the continued commitment by our customers to Thermage procedures."

"Thermage is focused on a strategy that includes organic growth, as well as complementary acquisitions that add value for our customers and shareholders," continued Mr. Fanning. "One of the primary reasons behind our IPO was to raise funds that would allow us to pursue this strategy. During the first quarter, we reached an advanced stage of negotiations with a potential acquisition target and had performed significant due diligence on the project before negotiations were terminated. We incurred approximately $1.0 million in outside advisory fees pursuing this acquisition. We remain committed to our strategy to build our presence in the aesthetics market, both organically and through acquisitions that will allow us to expand our product offerings to our customer base and leverage our operating infrastructure."

"Looking at the remainder of 2008, the recent bifurcation of our domestic salesforce, innovative sales strategies such as our Infinity program, and recently introduced tips and procedures, we believe we are positioned for continued revenue growth. While we anticipate that economic conditions will remain challenging throughout the year, we will continue our focus to drive revenue, expand market share, and build upon our reputation as a leader in safe, effective skin tightening and contouring procedures," concluded Mr. Fanning.

Guidance:

Management currently expects 2008 revenue to be in a range of $67 million to $70 million. With the revised revenue guidance, as well as the business development expenses incurred during the first quarter, the Company expects net income for the full year 2008 on a GAAP basis to be between breakeven and $0.03 per diluted share. Non-GAAP (1) net income for the full year 2008, which excludes estimated stock based compensation charges of a
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SOURCE Thermage, Inc.
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