Syneron Medical Ltd (ELOS)

[midastouch017]

Syneron Invests in New Dental Laser Venture
Tuesday July 5, 8:00 am ET
Investment Complements elos(TM) Platform of Aesthetic Medical Devices

YOKNEAM, ISRAEL--(MARKET WIRE)--Jul 5, 2005 -- Syneron Medical Ltd. (NasdaqNM:ELOS - News) today announced that it has signed an agreement to invest $1.5m in Light Instruments Ltd., an Israeli start-up specializing in the development of advanced dental laser devices.

Syneron's investment, to buy 51% of the new company, will be made in two equal $750,000 tranches. Syneron will fund the second half of the investment only if a prototype of the laser system meets certain technical and clinical specifications. Syneron will also have an option to invest an additional $2m in the company. As part of the investment agreement, Syneron will have exclusive North American marketing and sales rights for 10 years following FDA clearance.

Chairman of Syneron, Dr. Shimon Eckhouse, explained that "dental laser products have many synergies in their technology, manufacture and marketing with Syneron's platform of aesthetic medical devices and the expected margins of the Light Instrument dental system are consistent with the margins of our core products."

Commenting on the market for the dental laser system, Dr. Eckhouse added: "There is a potential market of some 200,000 dentists in North America alone. The dynamics of the dental market have many similarities to the dynamics of the market for aesthetic medical devices in which Syneron is gaining a clear leadership position. Moreover, within the context of private dental clinics and emerging 'dental spas,' dentists are also potential customers for Syneron's core platform of aesthetic medical devices."

http://biz.yahoo.com/iw/050705/090129.html

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