For Immediate Release – 12:30PM EST April 2^nd, 2007

Alma Lasers reaches favorable license agreement with Palomar Medical Technologies

Parties settle on-going patent litigation

Buffalo Grove, Illinois, April 2^nd 2007—AlmaLasers announced earlier today that it has resolved an ongoing patentlitigation with Palomar Medical Technologies that involves certain US hair removal patents. Palomar has an exclusive license for these patents, owned by the General Hospital Corporation in Boston, Massachusetts.

Underthe terms of the license agreement, Alma Lasers has been granted anonexclusive license by Palomar and MGH. These terms are comparable tothose agreed to by other licensees of these patents, including medicalaesthetic device companies Cynosure and Cutera. Aftera nine month period at a slightly higher rate, Alma Lasers will pay a7.5% on-going royalty rate to Palomar on dedicated hair removalproducts.

Inaddition, Alma Lasers agreed to certain trade dress concessionsinvolving the Harmony and Aria product lines that will be implementedover the next six months. These changes will affect the look but notthe function or underlying technologies associated with the Harmony andthe Aria platform. Alma Lasers is confident that these trade dressmodifications will have minimal impact to the company businessstrategy. The company will have the freedom to continue to supplyupgrades, introduce new modules, replacement handpieces and otherproducts to the current Harmony and Aria customer base. There will alsobe no impact or interruption to current or future product development.

HowardKelly, Chief Executive Officer of Alma Lasers, stated “This resolutionis a positive one for both our customers and investors. It avoids thecost and uncertainty of a lengthy litigation and removes a significantdistraction from the business. Alma Lasers can now focus on the keytasks at hand, which is to grow a profitable business based on superiorplatform technology, innovation, and outstanding customer service.”

Aleader in the industry, Alma Lasers has pioneered revolutionary newtechnologies for the medical aesthetic market over the past sevenyears. In the spirit of moving the industry forward with free marketinnovation and a focus on customer needs, Alma Lasers had hoped toavoid this litigation. Moving forward, Alma Lasers will continue tofocus on innovation through technology that best serves our customers,physicians and their patients.

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About Alma Lasers, Ltd.

AlmaLasers, Ltd. is a global developer, manufacturer and seller of laser,light-based and radiofrequency devices for aesthetic and medicalapplications. Since 1980, the founders of Alma Lasers have been at theforefront of innovative laser and light-based medical technology. Theirtechnical expertise and in-depth understanding of practitioners' needsled to the development of Alma Lasers'multi-technology/multi-application systems. Alma Lasers' mission is toprovide modular, cost-effective and high performance designs thatenable medical practitioners to confidently offer safe, effective andprofitable aesthetic treatments to their patients. More informationabout Alma Lasers can be found at www.almalasers.com.

Alma Lasers = Wellbeing Through Technology

Contact:

Yariv Matzliach, Executive Vice President, Global Marketing

Tel: 1-866-414-2562

Yarivm@almalasers.com