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Thermage Announces Third Quarter Financial Results
Date:11/6/2007

resident and Chief Executive Officer of Thermage. "Treatment tip revenue grew 16% from the third quarter of 2006. A key to our growth was our recently introduced premium ThermaCool STC (smoothing, tightening and contouring) tip that has served to further improve the value proposition for our customers. Tips and related consumables represented 73% of total revenue. During the quarter, we sold 120 generators. We also demonstrated continued good operating expense controls."

"We believe support for Thermage treatments continues to grow among clinicians," continued Mr. Fanning, "and that this support is being driven by a wide range of Thermage applications as a result of our aggressive new product introductions during 2007. The new ThermaCool STC treatment tip introduced last quarter has been selling well, and on October 15th we began shipments of our deep heating 3.0cm2 ThermaTip(TM) DC for use in our recently introduced Body Shape procedure. Finally, we are very excited with the clinical results we are seeing from our cellulite procedure trials and we are targeting product launch late first quarter of 2008."

"The third quarter is traditionally the slowest for the industry," Mr. Fanning continued. "While we have adjusted our top line outlook for the full year, we have also raised the low-end of our guidance on EPS. The gross profit margin should remain strong and we expect continued good control of our operating expenses.

Guidance:

Management currently expects full year 2007 revenue to be approximately $63 million. Net income for full year 2007 on a GAAP basis is expected to be between $0.07 and $0.10 per diluted share. Non-GAAP earnings are expected to be in a range of $0.26 to $0.30 per diluted share. The per share earnings amounts are based on fully diluted weighted average shares of 26 million.

Non-GAAP Presentation:

(1) To supplement the condensed financial information presented on a GAAP

basis, management has provided
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SOURCE Thermage, Inc.
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