Palomar Claims Victory in Proxy Contest

LEXINGTON, Mass., July 2 -- Palomar Medical Technologies, Inc. announced that it has defeated The Monterey Stockholders Group LLC in the recent proxy contest for the election of directors. The claim was based on the preliminary report of the independent Inspector of Election from the company's annual meeting of stockholders, which was held on June 23, 1999. The Monterey Group had attempted to replace Palomar's Board of Directors with its own nominees. The Inspector's preliminary report found that of the shares voted at the meeting, approximately 28,384,054 voted for Palomar's nominees and approximately 9,553,994 voted for those nominated by the Monterey Group.