- 21 February 2006 -

Diomed hits record on medical laser sales

Diomed Holdings Inc, the developer and marketer of minimally invasive medical technologies, including laser treatments announced results for the fourth quarter and year ended December 31, 2005.

Amongst its accomplishments during 2005 and the fourth quarter were record fourth quarter total revenue of $5.6 m, up 40% over the fourth quarter of 2004 and improved fourth quarter 2005 gross margins, to 50% of revenues. For the full year, the company reported record full year revenues of $19 m, up 42% over 2004. However, net loss for the year was $12.9 m compared to $10.1 m for the year 2004.

"Diomed posted a strong performance in the fourth quarter with sequential revenue growth of 21% over the third quarter," said James Wylie, President & CEO of Diomed Holdings, Inc. "Impressively, our quarterly North American EVLT® revenues increased 27% quarter-over- quarter, representing an increase of 74% over the full year 2004, with North America EVLT disposable revenue increasing 87% over 2004. North America is our largest and fastest growing market for EVLT, and we anticipate continued gains as adoption rates accelerate and patient awareness continues to increase.

"Our installed laser base now exceeds 850 units -- more than all the other laser suppliers serving this market segment combined. We anticipate that our new DELTA laser system and our extensive product offering and physician practice development program will continue to differentiate Diomed from its competition. We expect that during 2006 the total number of laser treatments for the treatment of varicose veins will surpass the total number of radio frequency treatments for the same indication."

Web: http://www.diomedinc.com