Highlights of the 2009 first quarter include:

XTRAC recognized procedures up 30% over the prior year and down 14% sequentially

XTRAC domestic equipment sales up 17% over the prior year and down 49% sequentially

International Dermatology Equipment sales down 14% from the prior year and up 22% sequentially

Skin care revenues down 33% from the prior year and down 12% sequentially

Surgical Products revenues down 51% from the prior year and down 17% sequentially

Initiated planned cost reductions expected to result in approximately $4.5 million of savings annually

Completion of the acquisition of Photo Therapeutics business.

“Consumer spending, the economy and customer credit issues all adversely affected our consumer-based skincare business and the capital equipment sales of the Photo Therapeutics segment. Yet XTRAC procedures continue to grow year over year in this tough economy as dermatologists across the U.S. are looking for alternative reimbursed treatments to offset the drastic decline in elective aesthetic procedures over the past six months. During the first quarter, we placed 58 XTRACs, sold 14 XTRACs including 13 to existing customers, and removed 35 systems from underperforming practices,” said Jeff O’Donnell, president and chief executive officer of PhotoMedex. “The PhotoMedex management team has taken decisive steps to calibrate our company to the existing economic environment, and to ensure that it is healthy and ready to excel when the economy rebounds.”

Reported Financial Results

Revenues for the Q1 2009 include $746,048 from the Photo Therapeutics segment, which was acquired on February 27, 2009. The Surgical Services business segment was sold in August of 2008. Consequently, revenues of $1,899,739 previously recorded in the Q1 2008 are not included above and are now classified as discontinued operations.

The 2009 first quarter net loss included non-cash charges of $1,287,894, including stock-based compensation expense of $292,674 and depreciation and amortization of $995,220. Further, the first quarter loss included a non-cash charge of $432,352 for additional acquisition costs in connection with the Photo Therapeutics acquisition as required by SFAS 141(R). The 2008 first quarter net loss included non-cash charges of $1,657,654, including stock-based compensation expense of $426,543 and depreciation and amortization of $1,214,612. There were no acquisition expenses incurred in the Q1 2008.

As on March 31, 2009, the company had cash and cash equivalents of $4.2 million, including restricted cash of $78,000, comparedwith cash and cash equivalents of $3.7 million as of December 31, 2008, including restricted cash of $78,000.