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Palomar and Gillette Extend Launch Decision on Home-Use Light Based Hair Removal Device and Agree to Negotiate New Terms
Date:12/21/2007

BURLINGTON, Mass., Dec. 21 /PRNewswire/ -- Palomar Medical Technologies, Inc. (Nasdaq: PMTI), a leading researcher and developer of light-based systems for cosmetic treatments, today announced an agreement with The Gillette Company (a wholly owned subsidiary of The Procter and Gamble Company (NYSE: PG)) to extend the Launch Decision of a home-use, light-based hair removal device for women until no later than February 29, 2008. Under the existing Development and License Agreement entered into by Palomar and Gillette on February 14, 2003 and as Amended and Restated on February 14, 2007, Gillette had until January 7, 2008 to make the Launch Decision. During this extension period, Palomar and Gillette have agreed to enter into negotiations for a new agreement to replace the existing one. The goal of a new agreement would be to enable the parties to continue to work together to fully capitalize on the market potential. Although no assurances can be given as to the outcome of these negotiations, it is anticipated that a new agreement would include the release of Palomar from exclusivity and the retention by Gillette of non-exclusive rights to Palomar's technology and intellectual property. In return for a release from exclusivity, Palomar anticipates that there would be a reduction in the percentage of net sales that Gillette pays to Palomar and a change from annual payments under the existing agreement to reduced calendar quarterly payments for a certain period. There can be no assurances that Palomar and Gillette will reach
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SOURCE Palomar Medical Technologies Inc
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