PhotoMedex Announces Definitive Merger Agreement with Radiancy

Combined company foresees significant new sales opportunities in global consumer and professional skin-care markets, and has pro forma revenues of $132 million for the 12 months ended March 31, 2011 PhotoMedex shareholders to own approximately 25% of the company on a fully converted basis Radiancy to provide cash for PhotoMedex to repurchase convertible notes and accrued interest at closing - balance of $22.4 million at June 30, 2011 Conference call to be held July 11, 2011 at 4:00 p.m. Eastern time PhotoMedex PHMD today announced the signing of an Agreement and Plan of Merger among PhotoMedex, Radiancy, Inc., a privately held Delaware corporation and PHMD Merger Sub, a wholly owned subsidiary of PhotoMedex. Pursuant to the Agreement, Merger Sub will merge with and into Radiancy, and Radiancy will become a wholly owned subsidiary of PhotoMedex. Radiancy is a rapidly growing global direct-to-consumer and dermatological products company based in Orangeburg, N.Y. This transaction combines the strength of PhotoMedex in the professional dermatology and plastic surgery market with the global reach of Radiancy in the consumer market, and represents considerable opportunity for synergies and sales growth of each company's product portfolio.