BIOLASE can either submit a detailed plan of compliance by April 7, 2009, advising NASDAQ of the action BIOLASE has taken, or plans to take, that will bring it into compliance or apply to transfer to the NASDAQ Capital Market. The NASDAQ Capital Market has minimum stockholders’ equity requirements of $2.5 million. The company believes that, as of March 26, 2009, it is in compliance with all of the requirements for listing with the NASDAQ Capital Markets.

If the company chooses to submit a plan of compliance and NASDAQ does not accept the company’s plan, NASDAQ may then start delisting proceedings from the NASDAQ Global Market, at which time BIOLASE may appeal NASDAQ’s determination to a Listing Qualifications Panel.