Q-Med and Palomar terminates international distribution agreement

Q-Med and Palomar terminates international distribution agreement 

Q-Med AB, today announced the termination of its international distribution
agreement with Palomar Medical Technologies, Inc. (Nasdaq:PMTI), a leading
researcher and developer of light-based systems for cosmetic treatments. The
international distribution agreement was originally entered into in January 2008
with the intention that Q-Med would eventually be responsible for the marketing,
sale and distribution of Palomar's professional products for esthetic treatments
outside North America.

Due to the downturn in the world-wide economic environment, Q-Med's efforts are
being concentrated on their own product line of dermal fillers. Both Palomar and
Q-Med agreed that Palomar will be better served by separately continuing to
expand its existing distribution channel. 

Bengt Ågerup, Q-Med's Chief Executive Officer said, “By working closely with
Palomar we have learned more about Palomar's top-end technological platforms and
products. Considering the present challenging market conditions, Q-Med is
focusing on its leading dermal filler product line, Restylane® as well as on the
on-going launch of Macrolane™, the first injectable body contouring product
line, and the Restylane Vital™ product line for skin rejuvenation. Hopefully we
will be able to utilize our relationship and the knowledge we have built in the
future.”

Joseph P. Caruso, Palomar Chief Executive Officer said, “Although we are
choosing to end our distribution agreement, this was a good learning experience
and we have formed a positive relationship with Q-Med that may be beneficial in
the future.  We believe that during these challenging economic times we will be
better positioned with full control of our international distribution. We have
signed up many new distributors over the past twelve months and continue to work
closely with all of our distributors to help maximize their sales efforts.
Territories outside North America should continue to provide growth
opportunities for us as we expand our efforts.”

Queries should be addressed to: 
Anders Blom, Senior Director Corporate Development and Strategy
Tel: +46 (0) 70 974 9060
Madelene Sandgren, Director Investor Relations and Corporate Communications
Tel: +46 (0)70-974 9015

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, 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.