IRVINE, CA -- (Marketwire) -- 11/05/08 -- BIOLASE Technology, Inc. (NASDAQ: BLTI), the world's leading dental laser company, today highlighted year-over-year revenue growth in operating results for its third quarter and nine months ended September 30, 2008 of 19.3 percent and 15.1 percent, respectively.

Net revenue for this year's third quarter and first nine months was $15.3 million and $53.0 million, respectively, up from $12.8 million and $46.0 million in the respective prior year periods. The increase was driven by orders for the new Waterlase® C100.

Gross margin as a percentage of net revenue for this year's third quarter and first nine months decreased to 49 percent and 51 percent, respectively, as compared with 51 percent and 54 percent of net revenue for the third quarter and first nine months of 2007. Demonstration unit discounts for certain Waterlase C100 orders drove most of the percentage decrease in the third quarter. Gross profit dollars for the third quarter and first nine months of 2008 increased $0.9 million and $2.5 million, driven up by higher revenues.

Operating expenses in this year's third quarter and first nine months were $11.3 million and $31.2 million compared to operating expenses of $10.2 million and $31.1 million in the respective prior year periods. Third quarter operating expenses included a $1.2 million charge for the October legal settlement with Diodem and the associated legal fees in that quarter plus approximately $0.5 million of additional expenses to launch several new initiatives. These initiatives included the new sales process and CRM program, new market messaging and materials, the Waterlase C100, and several customer service programs, including refresher training.

Other income in this year's third quarter included a loss on foreign currency of $637,000 compared to a loss of $34,000 in the same period of 2007. Other income in the first nine months included a gain on foreign currency of $204,000 compared to a gain of $34,000 for the year-earlier period. The foreign currency fluctuations were driven by inter-company payables from the foreign subsidiaries to BIOLASE. In mid-October, BIOLASE restructured these payables into capital contributions, which is expected to significantly reduce future foreign currency gains and losses reflected in other income.

Net loss for the third quarter of 2008 was $4.5 million, or $0.19 loss per share, compared with a net loss of $3.5 million, or $0.15 loss per share, in the same period of 2007. Third quarter income improvements of approximately $1.3 million were offset by about $2.3 million in total costs and charges for the Diodem settlement, currency losses and new initiatives discussed above. For this year's first nine months, net loss was $3.8 million, or $0.16 loss per share, compared with a net loss of $6.1 million, or $0.26 loss per share in the first nine months of 2007.

BIOLASE Chief Executive Officer Jake St. Philip said, "Year-over-year sales growth of close to twenty percent in the third quarter demonstrated continued progress as we focus on improving execution at every level of the Company and implementing companywide changes. A key cross-functional execution success of the quarter was the on-time launch of the Waterlase C100. While the Waterlase C100 was just introduced to the dental marketplace, the initial distributor orders for the Waterlase C100 significantly drove the quarter's growth.

"We continue to make the fundamental changes necessary to further establish our BIOLASE brands and extend our vision of Waterlase Dentistry to over 750,000 dentists around the globe. While we may yet experience sequential and year-over-year quarterly variations in results in the short term, especially in light of the current economic climate, we remain focused on improving our operations and establishing the right set of fundamentals to deliver long-term success."

During the third quarter and to-date, the Company continued to push forward on new corporate initiatives. In addition to the launch of the Waterlase C100, some of the steps and milestones that were recently achieved include:

--  The launch of a new sales process and CRM program at the start of the
    quarter;
--  A further strengthening of our partnership with Henry Schein, whose
    financing arm has helped shield its customers during these recent economic
    upheavals;
--  The awarding of new patents covering consumable laser tips and core
    laser technology, as well as our first Japanese patent;
--  The launching of our new Waterlase Dentistry marketing messaging
    program at the ADA in October; with the objectives of marketing a total
    solution, not just technology, and solidifying our category leadership;
--  The formalization of a Luminary Advisory Board and Training Group and
    the launch of a new training website in October;
--  Ongoing cost management and the reallocation of resources to efforts
    that drive sales.
    

St. Philip said, "Internationally, we spent a substantial amount of time abroad assessing our operational effectiveness and efficiency.