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Laser Energetics to Form Joint Venture to Market Laser for Dental Applications

Laser Energetics, Inc. announced today that the Company has signed a Memo Of Understanding ("MOU") with Lantis Laser, Inc. of Denville, NJ to form a Joint Venture, on a 50:50 basis, to market and distribute its BrightStar(TM) Alexandrite laser for dental applications.

One of the first applications identified involves removing calculus (bacterial tartar) from teeth. Hygienist's scaling, while necessary and effective, is not comfortable to most patients. Laser removal of calculus is achieved without contact and would certainly be the choice of cleaning modality for most practitioners and patients. Because of the BrightStar(TM) technology, the laser has a more compact design, lower cost to build, and thus is more cost effective and profitable to the practitioners using them than current technologies.

Under the terms of the MOU, Laser Energetics received an order from Lantis Laser for an Alexandrite development laser, which will include a cost- effectiveness manufacturing study to tailor the compact laser for the dental market. The study and laser will be completed before the end of 2007. Laser Energetics' primary role will be development, engineering, and manufacturing of the new laser package, which will be funded by the Joint Venture.

Robert D. Battis, Chairman and Chief Executive Officer of Laser Energetics, said, "Our goal is to take LEI's expertise in Alexandrite lasers and combine it with the expertise that Lantis Laser has in the field of dentistry. With Lantis, which has created an infrastructure to service the dental marketplace, we will together identify as many uses as possible for BrightStar(TM) in dentistry. It is estimated that there are 100,000 dental offices in the US, and another 100,000 offices in Europe, Japan and other first world countries. Our expectation is that we will be selling BrightStar(TM) into this market at a price of approximately $40,000 per laser package. We expect to be in a position to make several announcements regarding these developments in the near future.

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