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Thermage Announces Second Quarter 2008 Financial Results
Date:8/11/2008

of 2008 was $1.7 million, or $0.07 per diluted share, compared to a non-GAAP (1) net income of $3.9 million, or $0.15 per diluted share, for the prior year period. Included in the operating results for the six months ended June 30, 2008 were approximately $1.0 million of expenses for business development activities that were terminated during March 2008.

"Our treatment tip sales remained strong in the quarter, despite the slowdown in the aesthetics market, a strong testament to the efficacy and popularity of Thermage procedures," said Stephen J. Fanning, Chairman, President and Chief Executive Officer. "While overall revenue from systems sales declined, we sold the second highest number of system upgrades in the recent second quarter since the introduction of the NXT in first quarter of 2007. We were also pleased with the continued growth in the number of customers subscribing to our Infinity Partner Plans, which offer existing customers flexibility through volume and pricing options."

"We are extremely excited about our pending acquisition of Reliant," Mr. Fanning continued. "The transaction will bring together two of the market leaders in skin tightening and skin resurfacing, complementary technologies that can address a wide range of skin conditions and help us expand our presence domestically and overseas. Reliant generated $22.6 million in revenue in the second quarter, an increase of 19% from the second quarter of 2007. Revenue from treatment tips and other consumables represented approximately 23% of Reliant's total revenue in the recent second quarter. With the $14 million that we have identified in potential cost savings, we expect this transaction to be accretive in 2009. We have filed a registration statement on Form S-4 with the SEC and will be working on additional regulatory filings over the next several weeks.

"The environment remains challenging. We continue to benefit from end user demand due to our broad range of tips and proc
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SOURCE Thermage, Inc.
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