Cynosure Announces Successful Settlement in Patent Lawsuit Against CoolTouch, Inc.

WESTFORD, Mass., Feb. 9 /PRNewswire-FirstCall/ -- Cynosure, Inc. (Nasdaq: CYNO), developer of the award-winning Smartlipo™ LaserBodySculpting(SM) procedure for minimally invasive removal of fat, and its largest shareholder, El.En. S.p.A, today announced a settlement of their patent infringement lawsuit against CoolTouch, Inc.  Cynosure and El.En. alleged that CoolTouch's 1320 nm CoolLipo™ laser system infringed on El.En.'s U.S. Patent No. 6,206,873 (the 873 patent) licensed to Cynosure, which covers laser technology to remove subcutaneous fat.  

Under the terms of the settlement, CoolTouch will make payments representing a 9% royalty on sales of CoolLipo made prior to the agreement and a portion of Cynosure's legal expenses.  CoolTouch also has agreed to pay a royalty rate of 10% of future net sales for any licensed product sold strictly for lipolysis, and 7.5% of future net sales for any licensed product sold for lipolysis and at least one other aesthetic procedure.  As part of its agreement with Cynosure, CoolTouch has agreed to a Consent Judgment that it has infringed on the 873 patent and that the patent is valid and enforceable.  CoolTouch also has granted to Cynosure and El.En. a royalty free license to any patents or patent applications owned or controlled by CoolTouch related to the treatment of fat and/or cellulite.  

"This is an important victory for Cynosure," said President and Chief Executive Officer Michael Davin.  "In addition to the financial benefits of the agreement, the successful outcome validates the strength of our patent position in the emerging laser lipolysis industry. From our introduction of Smartlipo in 2006 to the subsequent enhancements we have made to the technology, we have established laser lipolysis as the gold standard for the minimally invasive removal of fat.  Today, Smartlipo is the most recognized body contouring brand among U.S. consumers.  The agreement with CoolTouch further enhances that brand and the technology behind our entire Smartlipo family of products."

"Going forward, we plan to continue our strategy of enforcing our licensed intellectual property position around our laser lipolysis portfolio," Davin concluded.  "For the benefit of Cynosure and its shareholders, we intend to pursue licensing arrangements with additional laser lipolysis competitors that we believe have infringed upon the 873 patent."

The 873 patent is a fundamental component of the Smartlipo LaserBodySculpting Workstation, a groundbreaking system designed as an alternative to traditional liposuction in patients with areas of localized fat. Cynosure received U.S. Food and Drug Administration clearance to market the Smartlipo workstation in late 2006. The product, which was launched in early 2007, uses a laser to deliver energy directly to subcutaneous fat cells, causing them to rupture. The emitted fat-melting energy also coagulates tissue, thus inducing collagen retraction and tissue tightening.

Under Cynosure's license agreement with El.En., once Cynosure has recouped all of its legal costs incurred in the CoolTouch case, Cynosure will receive 60% of the future royalty payments from CoolTouch and El.En. will receive 40%.  

About Cynosure, Inc.

Cynosure, Inc. develops and markets aesthetic treatment systems that are used by physicians and other practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and pigmented lesions, rejuvenate the skin, liquefy and remove unwanted fat through laser lipolysis and temporarily reduce the appearance of cellulite.  Cynosure's products include a broad range of laser and other light-based energy sources, including Alexandrite, pulse dye, Nd:YAG and diode lasers, as well as intense pulsed light. Cynosure was founded in 1991.  For corporate or product information, contact Cynosure at 800-886-2966, or visit www.cynosure.com.

Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for Cynosure, Inc., including statements about the company's plans to pursue additional licensing arrangements, as well as other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995.  Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the global economic recession and its effects on the aesthetic laser industry, Cynosure's history of operating losses, its reliance on sole source suppliers, the inability to accurately predict the timing or outcome of regulatory decisions, changes in consumer preferences, competition in the aesthetic laser industry, economic, market, technological and other factors discussed in Cynosure's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are filed with the Securities and Exchange Commission.  In addition, the forward-looking statements included in this press release represent Cynosure's views as of the date of this press release.  Cynosure anticipates that subsequent events and developments will cause its views to change.  However, while Cynosure may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so.  These forward-looking statements should not be relied upon as representing Cynosure's views as of any date subsequent to the date of this press release.

SOURCE Cynosure, Inc.