Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACTS:

Cutera, Inc.

Ron Santilli

Chief Financial Officer

415-657-5500

Investor Relations

John Mills

Integrated Corporate Relations, Inc.

310-395-2215

jmills@icrinc.com

CUTERA ACHIEVES RECORD REVENUE AND EARNINGS GROWTH IN FOURTH

QUARTER AND YEAR ENDED DECEMBER 31, 2005

Brisbane, California, February 13, 2006 – Cutera, Inc. (Nasdaq: CUTR), a leading provider of laser and other light-based aesthetic systems for practitioners worldwide, today reported financial results for the fourth quarter and year ended December 31, 2005. Key financial highlights are as follows:

Fourth quarter 2005, compared with the same quarter in 2004:

• Revenue increased by 49% from $16.1 million to $24.0 million

• Operating margins improved from 17% to 29%

• Earnings per diluted share climbed from $0.16 to $0.41

• Cash generated by operations improved from $3.9 million to $7.6 million

Full year 2005, compared with full year 2004:

• Revenue increased by 44% from $52.6 million to $75.6 million

• Operating margins improved from 10% to 22%

• Earnings per diluted share climbed from $0.31 to $1.00

• Cash generated by operations more than doubled, from $9.2 million to $20.4 million

• Cash and marketable investments increased by $25.7 million from $66.3 to $92.0 million.

“These impressive results are attributable to the positive reception that our products have been receiving in the marketplace and to the expansion of our sales force,” said Kevin Connors, President and Chief Executive Officer. “In 2005, we experienced significant financial leverage in our business model. We increased gross margins and decreased each of our operating expenses, as a percent of revenue.

“We remain committed to aggressively investing in our business to exploit the growth opportunities in this robust market. Specifically, we are focused on the following key initiatives, which are yielding measurable returns as proven by our results in 2005: (i) worldwide sales force

expansion- we ended 2005 with 47 direct sales territories in North America, up from 32 territories at the end of 2004; (ii) new aesthetic solutions and product introductions; and, (iii) marketing to the broad and expanding market of physicians outside of the traditional dermatology and plastic surgery physician specialties, including the emerging medi-spa market. That market is comprised of physicians who offer aesthetic treatments in a spa environment.”

Revenue highlights for the full year 2005, compared with the full year 2004, are as follows:

• U.S. and international revenue increased by 57% and 19%, respectively.

• Product revenue grew by 46%, primarily due to our premium multi-application Xeo product and the newly introduced Solera platform products.

• Service revenue increased by 60%, primarily due to the sales of post-warranty service contracts to an increasing number of customers.

• Revenue from Titan refills- an annuity business line introduced in late 2004 - contributed $1.8 million in 2005.

Mr. Connors concluded, “We are very pleased with the results of our key initiatives. Our strong financial position, together with the fast-paced growth of our company, strategically position Cutera as a leading global provider of light-based aesthetic systems.”

Guidance

The following is management’s guidance excluding and including the impact of adopting SFAS 123(R):

	Impact of Expensing Employee Stock Options-SFAS 123(R)
	Three months ended 3/31/2006				Year Ended 12/31/2006
	Including		Excluding		Including		Excluding
Revenue	$	19,000	$	19,000	$	94,300	$	94,300
Stock-based compensation	$	1,000	$	230	$	4,500	$	940
Net Income	$	1,110	$	1,580	$	12,330	$	14,490
Diluted EPS	$	0.08	$	0.11	$	0.85	$	1.00

Effective January 1, 2006, Cutera will be adopting Statement of Financial Accounting Standards (SFAS) No. 123(R), which requires the Company to begin recognizing compensation expense relating to share-based payment transactions in the Statement of Operations. In the above guidance, for the benefit of investors, management has provided summary non-GAAP information that is consistent and comparable with the company’s historical performance. A table reconciling the non-GAAP financial measure of excluding the impact of SFAS 123(R), to the appropriate GAAP measure, is included in the condensed consolidated financial statements attached to this release.

Conference Call

Cutera, Inc. will host a conference call on February 13, 2006, at 2:00 p.m. PST (5:00 p.m. EST) to discuss its fourth-quarter and year-ended 2005 results. The earnings call will be broadcast live over the internet hosted at the Investor Relations section of the company’s website at http://www.cutera.com and will be archived online within one hour of the completion of the conference call. In addition, you may dial 800-811-8824 to access that call. Participating in the call will be Kevin Connors, President and Chief Executive Officer, and Ron Santilli, Chief Financial Officer.

A telephonic playback of this call will be available from 5:00 p.m. PST on February 13, 2006, through 9:00 p.m. PST on February 27, 2006 by calling 888-203-1112. International callers may call 719-457-0820. To access this playback, please enter pass code 6044919.

About Cutera, Inc.

Brisbane, California-based Cutera is a leading provider of laser and other light-based aesthetic systems to the professional aesthetic market. Since 1998, Cutera has been developing innovative, easy-to-use products that enable dermatologists, plastic surgeons, gynecologists, primary care physicians and other qualified practitioners to offer safe, effective and non-invasive aesthetic treatments to their patients. For more information, call 1-888-4CUTERA or visit www.cutera.com

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning Cutera’s ability to continue to rapidly grow its business, its ability to successfully carry out key initiatives for 2006, including sales force expansion, introduction of new aesthetic solutions and product introductions, and broadening of its customer base, as well as Cutera’s financial guidance for the first quarter and fiscal year 2006, are forward-looking statements within the meaning of the Safe Harbor. Forward-Looking statements are based on management’s current, preliminary expectations and are subject to risks and uncertainties, which may cause Cutera’s actual results to differ materially from the statements contained herein. Cutera’s fourth quarter and year ended December 31, 2005 financial performance, as discussed in this release, are preliminary and unaudited, and subject to adjustment. Estimates for the first quarter and fiscal year 2006 financial performance are subject to a number of assumptions regarding the future operation of our business. Further information on potential risk factors that could affect Cutera’s business and its financial results are detailed in its most recent 10-K and 10-Q as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward–looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. Cutera undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

—Financial Tables Follow—

CUTERA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

	December 31,
	2005			2004
Assets
Current assets:
Cash and cash equivalents	$	5,260		$	7,070
Marketable investments		86,736			59,200
Accounts receivable, net		6,478			6,643
Inventory		5,245			3,004
Deferred tax asset		3,027			2,284
Other current assets		3,728			878
Total current assets		110,474			79,079
Property and equipment, net		1,015			1,071
Intangibles, net		469			399
Total assets	$	111,958		$	80,549
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable	$	1,352		$	1,195
Accrued liabilities		9,131			8,194
Deferred revenue		1,673			1,171
Total current liabilities		12,156			10,560
Deferred rent		1,096			648
Deferred revenue, net of current portion		1,469			833
Deferred tax liability		60			52
Total liabilities		14,781			12,093
Stockholders’ equity:
Common stock		12			11
Additional paid-in capital		77,705			62,738
Deferred stock-based compensation		(2,171	)		(2,226	)
Retained earnings		21,743			7,942
Other comprehensive loss		(112	)		(9	)
Total stockholders’ equity		97,177			68,456
Total liabilities and stockholders’ equity	$	111,958		$	80,549

CUTERA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2005			2004			2005			2004
Net revenue	$	23,953		$	16,094		$	75,620		$	52,641
Cost of revenue(1)		6,149			4,235			19,792			14,689
Gross profit		17,804			11,859			55,828			37,952
Operating expenses:
Sales and marketing		7,106			5,473			24,801			19,052
Research and development		1,374			1,150			5,065			4,136
General and administrative		2,164			2,195			7,983			8,344
Amortization of stock-based compensation(2)		207			313			1,307			1,267
Total operating expenses		10,851			9,131			39,156			32,799
Income from operations		6,953			2,728			16,672			5,153
Interest and other income, net		683			378			2,034			632
Income before income taxes		7,636			3,106			18,706			5,785
Provision for income taxes		(1,825	)		(1,034	)		(4,905	)		(2,025	)
Net income	$	5,811		$	2,072		$	13,801		$	3,760
Net income per diluted share	$	0.41		$	0.16		$	1.00		$	0.31
Weighted-average number of shares used in diluted per share calculations		14,291			13,167			13,864			12,222
(1) Cost of revenue includes amortization of stock-based compensation of:	$	33		$	39		$	135		$	168
(2) Amortization of stock-based compensation is attributable to the following operating expense categories:
Sales and marketing		61			63			220			274
Research and development		47			104			288			413
General and administrative		99			146			799			580
		207			313			1,307			1,267
Total amortization of stock-based compensation	$	240		$	352		$	1,442		$	1,435

CUTERA, INC.

CONSOLIDATED REVENUE HIGHLIGHTS

(in thousands, except percentage data)

(unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2005		2004		Change		2005		2004		Change
	$		$		%		$		$		%
Revenue By Geography:
United States	$	18,274	$	10,894	+68	%	$	54,506	$	34,824	+57	%
International		5,679		5,200	+9	%		21,114		17,817	+19	%
	$	23,953	$	16,094	+49	%	$	75,620	$	52,641	+44	%
Revenue By Product Category:
Products	$	19,939	$	13,325	+50	%	$	63,349	$	43,525	+46	%
Product upgrades		2,060		2,038	+1	%		6,630		6,615	0	%
Service		1,222		659	+85	%		3,881		2,429	+60	%
Titan refills		732		72	+917	%		1,760		72	+2344	%
	$	23,953	$	16,094	+49	%	$	75,620	$	52,641	+44	%

CUTERA, INC.

Reconciliations of Non-GAAP guidance measures to the nearest comparable GAAP guidance measures

(in thousands, except per share data)

(unaudited)

	Three Months Ended 3/31/2006							Year Ended 12/31/2006
	GAAP Guidance		Adjustment			Non-GAAP Guidance		GAAP Guidance		Adjustment			Non-GAAP Guidance
Revenue	$	19,000				$	19,000	$	94,300				$	94,300
			$	770	(a)					$	3,560	(a)
Net income	$	1,110	$	(300	)(b)	$	1,580	$	12,330	$	(1,400	)(b)	$	14,490
Net income per diluted share	$	0.08	$	0.03		$	0.11	$	0.85	$	0.15		$	1.00

(a)— To eliminate incremental stock-based compensation charges resulting from adopting SFAS 123(R) with effect from January 1, 2006.

(b)— To eliminate the tax benefit related to the incremental stock-based compensation charges resulting from adopting SFAS 123(R) with effect from January 1, 2006.

CUTERA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Year Ended December 31,
	2005			2004
Cash flows from operating activities:
Net income	$	13,801		$	3,760
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		689			524
Change in allowance for doubtful accounts		(311	)		293
Change in excess and obsolete inventory		614			300
Change in deferred tax asset/liability		(735	)		(476	)
Stock-based compensation		1,442			1,435
Tax benefit related to employee stock options		7,437			674
Loss on disposal of assets		—			47
Changes in assets and liabilities:
Accounts receivable		476			661
Inventory		(2,855	)		(1,065	)
Other current assets		(2,850	)		1
Accounts payable		157			(720	)
Accrued liabilities		937			2,485
Deferred rent		448			648
Deferred revenue		1,138			677
Net cash provided by operating activities		20,388			9,244
Cash flows from investing activities:
Acquisition of property and equipment		(539	)		(854	)
Purchase of intangibles		(165	)		—
Proceeds from sales of marketable investments		18,324			9,133
Proceeds from maturities of marketable investments		49,948			14,310
Purchase of marketable investments, net		(95,910	)		(82,652	)
Change in restricted cash		—			250
Net cash used in investing activities		(28,342	)		(59,813	)
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan		6,144			1,037
Proceeds from issuance of common stock, net		—			46,312
Net cash provided by financing activities		6,144			47,349
Net decrease in cash and cash equivalents		(1,810	)		(3,220	)
Cash and cash equivalents at beginning of year		7,070			10,290
Cash and cash equivalents at end of year	$	5,260		$	7,070
Supplemental and non-cash disclosure of cash flow information:
Conversion of preferred stock to common stock	$	—		$	7,372
Change in deferred stock-based compensation, net of terminations	$	1,387		$	(227	)
Cash paid for income taxes	$	1,837		$	2,526