LUMEE Lumenis Ltd. (MM)

Lumenis Announces Agreement to Outsource Operations at Pleasanton Site YOKNEAM, Israel, Jan. 7 /PRNewswire-FirstCall/ -- Lumenis Ltd. announced today that it had reached an agreement with RH Technologies Ltd. to outsource its manufacturing and service operations at its Pleasanton, CA site. Currently Lumenis' landmark Lightsheer System for hair removal with over 2,000 systems installed worldwide, and the Relume and B-Clear Systems for aesthetic and medical-aesthetic applications, are being manufactured in Pleasanton. This agreement is one of the milestones of the Company's Turnaround Plan, whereby Lumenis intends to close sites and reduce costs. The Company expects to save approximately $5 million over the next four years as a result of this agreement. The Research and Development and Marketing activities previously based in Pleasanton will be transferred to the Company's offices in Santa Clara, CA. Avner Raz, President and Chief Executive Officer, commented: "RH has a proven track record in running manufacturing operations for medical devices and other high tech products. This new agreement will allow us to reduce costs while maintaining the expertise and highest standards developed over the years in Pleasanton, and at the same time providing continuation of employment for our employees." RH Technologies Ltd. is a public company traded at TASE (Tel Aviv Stock Exchange), and is considered to be the largest contract manufacturer in Israel. RH will operate at the existing site in Pleasanton, and will supply Lumenis with products and the related parts and service. The agreement is for an initial term of four years and covers approximately 45 employees who will be transferred to RH. RH will also purchase certain inventory from Lumenis. The transaction is expected to close next week. About Lumenis Lumenis develops, manufactures, and markets state-of-the-art proprietary laser and intense pulsed light devices. Its systems are used in a variety of aesthetic, ophthalmic, surgical and dental applications, including skin treatments, hair removal, non-invasive treatment of vascular lesions and pigmented lesions, acne, psoriasis, ENT, gynecology, urinary lithotripsy, benign prostatic hyperplasia, open angle glaucoma, diabetic retinopathy, secondary cataracts, age-related macular degeneration, vision correction, neurosurgery, dentistry and veterinary. For more information about the Company and its products log on to http://www.lumenis.com/ The statements in this press release that are not historical facts are forward-looking statements, which are subject to risks and uncertainties. The Company's actual results could differ materially from those anticipated in the forward looking statements based on a variety of factors, including, among others: uncertainties with respect to market acceptance of the Company's products, obtaining regulatory approvals for new products or for the sale of existing products in new markets and enforcement of intellectual property rights; risks associated with competition and competitive pricing pressures, economic conditions generally, the Company's international operations and the Company's ability to integrate its operations with those of acquired businesses; the outcome of the Securities and Exchange Commission investigation and several securities class action lawsuits to which the Company is subject; uncertainties relating to the Company's continuing liquidity; and other risks detailed from time to time in the reports filed by Lumenis with the SEC, including its annual report on Form 10-K and quarterly reports on Form 10-Q. Contacts: Kevin Morano CFO 212-515-4187 DATASOURCE: Lumenis Ltd. CONTACT: Kevin Morano, CFO of Lumenis Ltd., +1-212-515-4187 Web site: http://www.lumenis.com/

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