Q2 2008 Highlights
  -  Total sales increased by 40% to $604,996, compared to $431,133 in Q2
     2007
  -  Canadian and U.S. product sales increased by 7% and 97%,
     respectively, compared to Q1 2008
  -  R&D expenses rose to $63,589 versus $22,168 in Q2 2007 due to
     accelerated spending on TLC-3000 photodynamic technology
  -  Launched the new Theralase Laser Rehabilitation Centre and appointed
     a new clinic director
  -  Appointed a Vice President, Business Development to help expand into
     Canada and the U.S.

TORONTO, Aug. 25 /CNW/ - Theralase Technologies Inc. (TSXV: TLT) today announced financial results for the three and six months ended June 30, 2008.

"The European sale of photodynamic light systems boosted total sales in the second quarter and could lead to further international sales," said Roger Dumoulin-White, President and CEO of Theralase Technologies. "Product sales, particularly in the U.S., showed strong growth over the prior quarter helped by the hiring of new sales representatives in Q1 2008. With the appointment of our new VP of Business Development, Mark Lemieux, we believe we can accelerate our sales and marketing initiatives in Canada and the U.S in the coming quarters."

"During the quarter, we continued to make progress developing our next generation therapeutic laser, the TLC-2000, which we expect to start selling in the first quarter of 2009. Our planned clinical studies at the Mayo Clinic and the Scripps Institute should demonstrate the efficacy of the new technology. We are also developing a TLC-3000 alpha prototype, which when used with our patented photodynamic compounds, has the ability to destroy cancer cells. This prototype is slated to be delivered to University Health Network for pre-clinical evaluation in the third quarter."

Financial Review

Revenue for the three months ended June 30, 2008 was $604,996, an increase of 40% over $431,133 in the same period in 2007 and a rise of 87% compared to $324,026 in Q1 2008.

Product and product-related sales increased 41% to $597,289 from $423,306 in Q2 2007 mainly due to the sale of photodynamic light systems to a European pharmaceutical company. Canadian product sales decreased by 3% to $248,961 but increased 7% compared to Q1 2008. Product sales to the U.S. decreased by 2% to $163,842 but increased 97% from $83,316 in Q1 2008. The year-over-year decrease is primarily a result of a reduction in smoking cessation product sales and the weakness in the U.S. currency. U.S. product sales are expected to improve as the Company executes on its plans to hire and deploy U.S. regional sales representatives.

Clinic services revenue declined by 1% to $7,707 compared to $7,827 in Q2 2007 as the Company's relocation in August 2007 temporarily shut down the Theralase clinic.