Theralase Technologies Inc.
TSX VENTURE : TLT

Theralase Technologies Inc.

May 29, 2009 09:00 ET

Theralase Posts 42% Q1 Increase in Revenue

TORONTO, ONTARIO--(Marketwire - May 29, 2009) - Theralase Technologies Inc. (TSX VENTURE:TLT) today announced financial results for the three months ended March 31, 2009.

Financial Review Highlights

- 1Q 2009 revenue increased by 42% to $461,378, compared to $324,026 in 1Q 2008

- Canadian product sales in 2009 increased 67% year-over-year to $403,052

- US product sales in 2008 decreased by 39% year-over-year to $50,776

- 1Q 2009 gross margin was $290,029, compared to $219,125 in 1Q 2008

- 1Q 2009 net loss was $217,250 compared to $339,948 in 1Q 2008, a decrease of 36%.

Key Corporate Development Highlights

TLC-2000: Biofeedback Laser Technology

During 2009, Theralase made progress on commercializing its next generation therapeutic laser - the patented TLC-2000. The TLC-2000 biofeedback technology targets tissue at depth with higher precision than its competitors enabling exact doses of energy to be delivered to injured tissue at depth for enhanced efficacy and acceleration of healing. The TLC-2000 is also a learning device that remembers the most optimized protocols based on individual patient's optical tissue profiles.

Theralase expects to starts selling the TLC-2000 in the first quarter of 2010.

TLC-3000: Cancer Therapy and Wound Healing

Theralase designed, manufactured and delivered the alpha prototype of the TLC-3000 light source to University Health Network in September 2008. The TLC-3000 alpha prototype is custom designed by Theralase for the activation of Theralase's patented Photo Dynamic Compounds (PDCs) in the destruction of cancer cell lines.

In-Vitro experiments recently conducted at the Ontario Cancer Institute at Princess Margaret Hospital have demonstrated complete destruction of brain tumour cells (9L) following application of the Company's patented PDCs and subsequent activation with the Company's TLC-3000 light source.

Lothar Lilge Ph.D., lead researcher on the project stated, "I am excited about the possibilities and opportunities that these PDCs present in the destruction of cancer cells. An oxygen independent reaction is unique for this type of cancer therapy, where low oxygen conditions pose a major problem. The ability to completely destroy cancer cells in the absence of oxygen presents the unique opportunity of treating solid tumours of the breast, prostate, lung and brain, to name a few."

Further investigation is currently underway with the Theralase PDC platform with a variety of cancer cell lines in order to identify the lead candidate PDC and cancer cell line to evaluate in a small animal cancer model, slated to commence in 2009.

Breakthrough Scientific Research

Independent research conducted at University Health Network, demonstrated the superiority of the Company's proprietary laser technology over competitive laser and light based systems. The Company's technology was proven to dramatically influence a cellular process that is key to the efficacy of laser technology. The Company's proprietary technology is able to increase the production of nitric oxide in cells by 700% over baseline versus little to no effect by all other competitive wavelengths evaluated. Nitric oxide production is key to tissue healing since it increases the blood supply and reduces inflammation in injured tissue. Theralase technology has been scientifically proven to activate both known cellular pathways: the ATP pathway, which increases the energy to cells, and the Nitric Oxide pathway, which increases the blood flow to cells, while also reducing inflammation. By activating both known cellular pathways, the Theralase® proprietary 905 nm super-pulsed technology has now been proven to be more effective in neural muscular skeletal conditions, wound healing and chronic pain as compared to competitive systems.

The independent scientific research was peer reviewed and accepted for publication in the March 2009 edition of the highly regarded Lasers in Surgery and Medicine publication.

Theralase Secures Canada-Wide Distribution

Theralase recently announced a Canada-wide distribution agreement of the company's product line with Royal Cross, a well-established and respected distribution company for Canada's health care industry. This distribution agreement marks a significant step forward in the sales and marketing of Theralase's full product line to medical professionals throughout Canada.

The complete consolidated financial statements and MD&A for three months ended March 31, 2009 can be found at www.theralase.com and www.sedar.com.

About Theralase

Theralase® Technologies Inc. designs, develops and manufactures patented, super-pulsed laser technology used in bio-stimulative and bio-destructive clinical applications.

Theralase Technologies Inc. is focused on a two-part strategy:

1. Production, marketing and distribution of the Theralase Super-Pulsed Laser for sale to health care practitioners that are focused on the treatment of chronic pain, sports injuries and wounds.

2. Commercialization of patented cancer treatment through progressive research, clinical trials and advancement of new technology in the direct destruction of cancers.

This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The Company disclaims any obligation to update these forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.

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