PhotoMedex Announces $11.4 Million Private Placement of Common Stock

Nov 01, 2006, 00:00 ET from PhotoMedex, Inc.

    MONTGOMERYVILLE, Pa., Nov. 1 /PRNewswire-FirstCall/ -- PhotoMedex, Inc.
 (Nasdaq:   PHMD) today announced that it has entered into a definitive
 agreement with institutional investors for the private placement of
 approximately 9.8 million shares of common stock at a price of $1.17 per
 share, together with warrants to purchase approximately 2.4 million shares
 of common stock at an exercise price of $1.60 per share. Gross proceeds
 from the private placement will be approximately $11.4 million. The private
 placement is expected to close on or before November 2, 2006 and is subject
 to certain closing conditions.
     Cowen and Company, LLC, acted as the sole placement agent for this
 offering. PhotoMedex President and CEO Jeff O'Donnell said that the Company
 intends to use the proceeds from the placement for general working capital
 purposes. "We now have the working capital to increase the size of our
 sales force and accelerate our launch of the XTRAC(R) laser system. In
 addition, we plan on expanding our surgical services business to take
 advantage of a national laser services contract."
     Pursuant to an agreement with the investors, the Company is required to
 file a registration statement with the U.S. Securities and Exchange
 Commission covering the resale of the shares of common stock to be issued
 to the investors as well as the shares of common stock issuable upon
 exercise of the warrants, subject to certain terms and conditions.
     The securities offered in the private placement were not registered
 under the Securities Act of 1933, as amended (the "Act") or any state
 securities laws, and may not be offered or sold in the United States absent
 registration, or an applicable exemption from registration, under the Act
 and applicable state securities laws.
     About PhotoMedex:
     PhotoMedex is engaged in the development of proprietary excimer laser
 and fiber optic systems and techniques directed toward dermatological
 applications, with FDA approval to market the XTRAC(R) laser system for the
 treatment of psoriasis, vitiligo, atopic dermatitis and leukoderma. In
 addition, the Company provides contract medical procedures to hospitals,
 surgi-centers and doctors' offices, offering a wide range of products and
 services across multiple specialty areas, including dermatology, urology,
 gynecology, orthopedics, and other surgical specialties. The Company is a
 leader in the development, manufacturing and marketing of medical laser
 products and services. In addition, as a result of the merger with ProCyte,
 PhotoMedex now develops and markets products based on its patented,
 clinically proven Copper Peptide technology for skin health, hair care and
 wound care. PhotoMedex sells directly to dermatologists, plastic and
 cosmetic surgeons, spas and salons and through licenses with strategic
 partners into the consumer market, including a long-term worldwide license
 agreement with Neutrogena(R), a Johnson & Johnson company. ProCyte brands
 include Neova(R), Ti-Silc(R), VitalCopper(R), Simple Solutions(R) and
     Some portions of this release, particularly those describing
 PhotoMedex' strategies contain forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1993, as amended, and
 Section 21E of the Securities Exchange Act of 1934, as amended. While
 PhotoMedex is working to achieve those goals, actual results could differ
 materially from those projected in the forward-looking statements as a
 result of a number of factors, including difficulties in marketing its
 products and services, need for capital, competition from other companies
 and other factors, any of which could have an adverse effect on the
 business plans of PhotoMedex, its reputation in the industry or its
 results. In light of significant uncertainties inherent in forward-looking
 statements included herein, the inclusion of such statements should not be
 regarded as a representation by PhotoMedex or its subsidiaries that the
 forward-looking statements will be achieved.
     Contacts:  Allen & Caron           PhotoMedex, Inc.
     Matt Clawson (investors)           Dennis McGrath, CFO
     949-474-4300                       215-619-3287      

SOURCE PhotoMedex, Inc.