BURLINGTON, Mass., June 22 /PRNewswire-FirstCall/ -- Palomar Medical
Technologies Inc (Nasdaq: PMTI) and Lumenis Ltd. announced today that they
have reached a settlement resolving their on-going litigation concerning both
patent infringement and contractual matters. Palomar accused the
LightSheer(TM) Diode Laser System, a product initially developed by Palomar
and now marketed by Lumenis, and various Lumenis IPL systems of infringing
claims in two U.S. patents (5,595,568 and 5,735,844). Palomar has an exclusive
license to these patents from the General Hospital Corporation in Boston,
Massachusetts. Pursuant to the settlement, the parties will dismiss with
prejudice both the federal action in the Northern District of California as
well as the state court action in Massachusetts.
Under the terms of the settlement, Lumenis will pay $4.09 million over the
next six quarters for royalties due on sales of the LightSheer made between
July 1, 2002 and December 31, 2003. Beginning on January 1, 2004, Lumenis will
pay Palomar a 5% royalty on sales of the LightSheer and other professional
laser hair removal devices and modules. In addition, Lumenis has granted
Palomar a paid up license to a variety of Lumenis' patents for Palomar's light
based devices. Palomar has also granted Lumenis a paid up license to the '568
and '844 patents for Lumenis' lamp based devices. Importantly, both parties
have agreed to the validity and enforceability of each others patents and not
to challenge such validity and enforceability in the future.
Chief Executive Officer Joseph P. Caruso commented. "The settlement
benefits both parties and eliminates the costs and distractions of continuing
litigation. The strength of Palomar's patent portfolio is validated by this
settlement along with the favorable claims construction rulings Palomar
received in this lawsuit as well as our patent infringement lawsuit against
Cutera Inc." For more details, please see Palomar's press release issued March
1, 2004 available at http://www.palomarmedical.com.
Mr. Caruso continued, "Palomar intends to continue its strategy of
vigorously enforcing its patent portfolio."
About Palomar Medical Technologies Inc: Palomar is a leading researcher
and developer of light-based systems for hair removal and other cosmetic
treatments. Last year, Palomar and The Gillette Company (NYSE: G) entered into
an agreement to complete development and commercialize a patented home-use,
light-based hair removal device for women. New and exciting indications are
being tested to further advance the hair removal market and other cosmetic
applications. Palomar pioneered the optical hair removal field, when, in 1997,
it introduced the first high-powered laser hair removal system. Since then,
many of the major advances in light-based hair removal have been based on
Palomar technology. There are now millions of light-based cosmetic procedures
performed around the world every year in physician offices, clinics, spas and
salons.
For more information on Palomar and its products, visit Palomar's website
at http://www.palomarmedical.com. To continue receiving the most up-to-date
information and latest news on Palomar as it happens, sign up to receive
automatic e-mail alerts by going to the E-mail Alerts page in the Investor
Relations' section of the website.
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements,
including but not limited to statements relating to new markets, development
and introduction of new products, and financial projections that involve risk
and uncertainties that may individually or mutually impact the matters herein,
and cause actual results, events and performance to differ materially from
such forward-looking statements. These risk factors include, but are not
limited to, results of future operations, technological difficulties in
developing or introducing new products, the results of future research, lack
of product demand and market acceptance for current and future products, the
effect of economic conditions, challenges in managing joint ventures and
research with third parties, the impact of competitive products and pricing,
governmental regulations with respect to medical devices, including whether
FDA clearance will be obtained for future products, the results of litigation,
difficulties in collecting royalties, potential infringement of third-party
intellectual property rights, and/or other factors, which are detailed from
time to time in the Company's SEC reports, including the report on Form 10-K
for the year ended December 31, 2003 and the Company's quarterly reports on
Form 10-Q. Readers are cautioned not to place undue reliance on these forward-
looking statements, which speak only as of the date hereof. The Company
undertakes no obligation to release publicly the result of any revisions to
these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Contacts:
Investor Relations
Palomar Medical Technologies Inc
781-993-2411
ir@palmed.com
SOURCE Palomar Medical Technologies Inc
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CONTACT:
Investor Relations of Palomar Medical
Technologies Inc, +1-781- 993-2411, ir@palmed.com
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