Q-Med AB and Palomar enter into international distribution agreement, Q-MED AB to distribute Palomar products outside North America

Q-Med AB and Palomar enter into international distribution agreement, Q-MED AB
to distribute Palomar products outside North America

The Swedish company Q-Med AB today announced the execution of an international
distribution agreement with Palomar Medical Technologies, Inc. (Nasdaq:PMTI), a
leading researcher and developer of light-based systems for cosmetic treatments.
Q-Med AB will eventually be responsible for the marketing, advertising,
promotion, sale and distribution of Palomar's professional products for esthetic
treatments outside North America. Q-Med AB is the producer of Restylane®, one of
the most popular and widely distributed dermal filler in the world, with over 9
million treatments provided so far. Q-Med sells Restylane® globally through a
network of wholly owned sales companies, distributors and partners.

The single source availability of Q-Med and Palomar products will provide
physicians with a wide variety of treatment modalities to better meet the needs
of their customers for a superior esthetic treatment. Palomar and Q-Med also
recognize that the potential synergistic effects which may be achieved using the
current products of both companies may provide improved treatment options to
customers. In addition, Q-Med and Palomar will collaborate on marketing
campaigns, as well as arranging clinical symposiums, consensus meetings and
advisory boards. 

The companies intend that Q-Med will be an exclusive distributor in a major
portion of Europe by the end of 2008 and a large portion of the rest of the
world (excluding North America) by the end of 2009. The transition from
Palomar's existing distributors to Q-Med shall be on a country-by-country basis
as the companies agree on the terms of each transition. Q-Med and Palomar plan
to work with each of Palomar's current distributors to determine how each
distributor might successfully work together with Q-Med during and after each
country is transitioned.

Bengt Ågerup, Q-Med AB CEO said, “This agreement represents a major opportunity
to provide our customers with leading light-based anti-aging and hair-removal
products. Strong R&D commitment and belief in evidence based esthetic solutions
are a shared value of both our companies. We see this as a great opportunity to
bring new treatment modalities to our customers and help them further develop
their practice meeting the consumer demand in an ever expanding global market.
Palomar shares same company values with us and just like us provides the global
esthetic medical professional market with R&D and evidence based products, that
very well match Restylane® range of products and other present and future
products Q-Med brings to medical professionals around the world.  We are excited
to be participating in what is the first time that two companies from very
different esthetic industry segments have entered into such a collaboration”

Joseph P. Caruso, Palomar CEO  said, "There is great potential in combining the
effects of Palomar's light-based systems with Q-Med's leading range of dermal
fillers and injectable implants. Both companies are focused on developing new
technologies for products that provide superior results. The combination of our
individual strengths should yield interesting and important new approaches to
satisfying consumer needs. Of the many companies Palomar considered working with
to better expand Palomar's distribution in international markets, Q-Med is the
best choice. We are excited to work with such a dynamic company and believe
Q-Med will leverage their existing international presence, large customer base
and brand name recognition to greatly expand the international sales of
Palomar's light-based esthetic devices. In addition, the products of both
companies have the potential for synergistic treatments.  This collaboration
should propel our presence in international markets ahead of where we would be
able to grow on our own and provide an improved conduit for new products.”

Queries should be addressed to: 
Bengt Ågerup, CEO
Tel: +46 (0)70 974 9025
Anders Blom, Senior Director Corporate Development and Strategy
Tel: +46 (0)70 974 9060
Boris Vujovic, Senior Director Corporate Development and Strategy
Tel: + 44 780 325 0924




About Palomar Medical Technologies Inc: Palomar is a leading researcher and
developer of light-based systems for cosmetic treatments. Palomar pioneered the
optical hair removal field, when, in 1997, it introduced the first high-powered
laser hair removal system. Since then, many of the major advances in light-based
hair removal have been based on Palomar technology. In December 2006, Palomar
became the first company to receive a 510(k) over-the-counter (OTC) clearance
from the United States Food and Drug Administration (FDA) for a new, patented,
home use, light-based hair removal device. OTC clearance allows the product to
be marketed and sold directly to consumers without a prescription. There are now
millions of light-based cosmetic procedures performed around the world every
year in physician offices, clinics, spas and salons.  Palomar is testing many
new and exciting applications to further advance the hair removal market and
other cosmetic applications. Palomar is focused on developing proprietary
light-based technology for introduction to the mass markets. Palomar has an
agreement with Johnson & Johnson Consumer Companies to develop and potentially
commercialize home-use, light-based devices for reducing or reshaping body fat
including cellulite, reducing the appearance of skin aging, and reducing or
preventing acne.
For more information on Palomar and its products, visit Palomar's website at
www.palomarmedical.com. To continue receiving the most up-to-date information
and latest news on Palomar as it happens, sign up to receive automatic e-mail
alerts by going to the Investor Relations' section of the website.

Q-Med AB is a rapidly growing and profitable biotechnology/medical device
company. The company develops, manufactures, markets, and sells primarily
medical implants. The majority of the products are based on the company's
patented technology, NASHA™, for the production of stabilized non-animal
hyaluronic acid. The product portfolio today contains: Restylane® for filling
lines and folds, contouring and creating volume in the face, Macrolane™ for body
contouring, Durolane™ for the treatment of osteoarthritis of the hip and knee
joints, Deflux™ for the treatment of vesicoureteral reflux, VUR, (a malformation
of the urinary bladder) in children, Zuidex™ for the treatment of stress urinary
incontinence in women, and Solesta™ for the treatment of fecal incontinence.
Sales are made through the company's own subsidiaries or distributors in over 70
countries. Q Med today has just over 700 coworkers, with close to 500 at the
company's head office and production facility in Uppsala, Sweden. Q-Med AB is
listed in the Mid Cap segment of the OMX Nordic Exchange in Stockholm.


Q-Med AB (publ), Seminariegatan 21, SE-752 28 Uppsala, Sweden. Corporate
identity number 556258-6882.
Tel: +46(0)18-474 90 00. Fax: +46(0)18-474 90 01. E-mail: info@q-med.com. Web:
www.q-med.com.

In USA, Q-Med AB's affiliate is the wholly-owned subsidiary Q-Med Scandinavia,
Inc.