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CANDELA, MCKESSON ANNOUNCE EXCLUSIVE AGREEMENT

August 9, 2005

Candela has signed an exclusive three-year agreement with McKesson Medical-Surgical for distribution of Candela's full aesthetic laser and light-based line of products.

Under the agreement, McKesson will be distributing the GentleLASE and the GentleYAG, both of which provide hair removal treatments and skin rejuvenation; the Smoothbeam, used for the treatment of acne, acne scars and wrinkles; the Vbeam, which provides treatment of all vascular lesions and skin rejuvenation; the ALEXLAZR, used for the removal of tattoo pigments; and the Ellipse I2PL which provides skin rejuvenation and treatment for facial redness.

The distribution agreement will become effective beginning Nov. 1.