Syneron Medical Cuts Range Of Loss Contingency Associated With Palomar Litigation To $0-$21M

Syneron Medical Ltd. ELOS announced today that it has adjusted its estimate of the range of loss contingency associated with litigation between Palomar Medical Technologies, Inc. PMTI and Syneron's subsidiary, Candela Corporation, from $0 to $50 million as set forth in the notes to its consolidated financial statements as of December 31, 2010, to a range of $0 to $21 million. Syneron's determination that contingent losses related to the Palomar proceedings are only reasonably possible remains unchanged, therefore it continues not to record any accrual for the loss contingency. The adjusted estimate is based on the April 26, 2011 summary judgment decision of the District Court in Massachusetts and a recent submission by Palomar regarding its damage claim, which indicated that because the remaining patent claim at issue is a method claim, the royalty base for Candela's accused products is limited to sales of those products in the United States. Shimon Eckhouse, Chairman of Board of Syneron, stated, "Palomar's amended damage report provides affirmation that the recent summary judgment from the District Court was a major victory for Candela. It confirms that Palomar does not have legal grounds to seek royalty damages for international sales, significantly reducing Candela's potential financial exposure in the litigation. Furthermore, we remain confident that the single remaining Palomar claim, method claim 32 of the '844 patent, will be defeated at trial once the facts are presented in Court."