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Thermage Reports Third Quarter Financial Results and Provides Information Regarding Reliant's Results
Date:11/10/2008

HAYWARD, Calif., Nov. 10 /PRNewswire-FirstCall/ -- Thermage, Inc. (Nasdaq: THRM), a leader in non-invasive tissue tightening in the aesthetic industry, today reported financial results for the third quarter ended September 30, 2008. Reliant Technologies, Inc. also reported its financial results for the third quarter.

Thermage revenue for the third quarter of 2008 was $13.0 million, a decline of 6% from $13.9 million for the third quarter of 2007. Domestic revenue decreased 10% and international revenue fell 1% from the third quarter of 2007. Gross margin for the quarter was 75.4% as compared to 77.6% for the same period last year. Third quarter operating expenses declined from the prior year by $0.4 million, or 3%, to $10.6 million. Net loss for the quarter was $1.1 million, or $0.05 per share, compared to net income of $0.4 million, or $0.02 per diluted share, in the third quarter of 2007. The third quarter of 2008 included a $0.9 million loss, or $0.03 per share, associated with the company's investment in a Lehman Brothers bond. Non-GAAP (1) net income for the third quarter of 2008 was $0.7 million, or $0.03 per diluted share, compared to non-GAAP (1) net income of $1.6 million, or $0.07 per diluted share, for the prior year period.

Third quarter 2008 revenue for Reliant totaled $19.9 million, 22% over the $16.3 million in revenue in the third quarter of the prior year. Reliant's operating loss for the third quarter of 2008 was $1.6 million on a GAAP basis and included approximately $1.6 million in stock based compensation charges and approximately $1.1 million in transaction expenses related to the pending merger with Thermage.

On a combined pro forma basis, revenue for the third quarter of 2008 for both companies
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SOURCE Thermage, Inc.
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