EX-99.1 2 a56031exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1

Annual Meeting Update and 2010 PlansMay 5, 2010


 

April 2010 - End-user Shipments Double from Prior Year (without iLase shipments scheduled for May) 2009 - Bottom-line restructuring to reach breakeven and survive economic turmoilPLAN - Establish an immediate and long-term plan to break several years of declining salesANALYSIS, PLANNING and IMPLEMENTATION of plans to turn around sales trendsQ4/Q1 2010 - Top-line restructuring in contracts, sales management and product lineSALES FORCE - Terminations, upgrades, personnel up 50% expected to double from year endSALES LEADERSHIP - Promoted internal proven talent for dentistry and lasersDISTRIBUTION - New deal building entry into greater portion of US marketPRODUCT - Hottest new diode in the market with up-sell strategyCOVERAGE - Of 420 US MSAs have over 5% penetration in 67 NOW and targeting moreEXPOSURE - Well on way to implementing approach to general consumers virallyAPRIL 2010 - First month with all recent changes largely effectiveWaterlase and ezlase end-user shipments both approximately DOUBLE over prior year AprilEfforts for expanded market penetration still ramping, but taking groundOrders coming in rap idly domestically and abroad on the iLase...for May shipment 5/5/2010 2


 

Analysis and the Drivers of New Successful Beginning Analysis of 420 US Metropolitan Statistical AreasEstimated $200 Million Sales Opportunity Before "Chasm"Specific Opportunity Examples and ApproachSales Force Ramp UpiLase Launch, Strategy and Initial ResultsHistoric 10-Year AnalysisIndependent External Waterlase Sales Study - Why Not?Actions Taken and in ProcessMoving Beyond 5% to 10% Penetration - Consumer Pull 5/5/2010 3


 

The US has 420 Metropolitan Statistical Areas (MSAs) Waterlase Penetration ranges from 0% to 61% in Each There is Room to Expand NOW 5/5/2010 4 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion Penetration by Metropolitan Statistical Area


 

420 MSAs for Waterlase 195,000 Dentists in our US Database160,000 Dentists are Estimated to be Practicing6,000 of those Dentists use a Waterlase67 MSAs with over 5% Waterlase Penetration19 MSAs with over 7% Penetration4 MSAs with over 10% Penetration83 MSAs where there are NO Waterlase AT ALL270 MSAs where penetration begun, but most well under 5%If all US MSAs were at 5%, an incremental $200 million + in Waterlase sales aloneSignificant potential exists with better coverage NOW, with or without "Crossing the Chasm" 5/5/2010 5


 

Strengths Top 20 Penetration Areas with 6% to 61% Penetration Spread all over the country with varying sizeLargely a function of effort and location of sales repsStill growing! 5/5/2010 6 Practicing Est MDs Penetration City A, MA 23 14 61% City B, GA 46 11 24% City C, OR 33 4 12% City D, TX 42 5 12% City E, AL 50 5 10% City F, LA 64 6 9% City G, CO 75 7 9% City H, WV 57 5 9% City I, WV 161 14 9% City J, VA 82 7 9% City K, WV 60 5 8% City L, MO 39 3 8% City M, NY 40 3 7% City N, IN 54 4 7% City O, AZ 83 6 7% City P, NC 265 19 7% City Q, GA 43 3 7% City R, IL 43 3 7% City S, VA 134 9 7% City T, GA 432 28 6% 1,826 161 9% Average 91 8 9%


 

Weaknesses (and great new Opportunities) Examples of locations with NO Waterlase Most locations with no Waterlase are smaller cities that have not yet been penetratedStats show that some of these have the greatest penetration opportunities 5/5/2010 7 Practicing Est MDs Penetration City A, MI 53 0 0.0% City B, PA 53 0 0.0% City C, PA 162 0 0.0% City D, PA 163 0 0.0% City E, AR 20 0 0.0% City F, MS 45 0 0.0% City G, LA 46 0 0.0% City H, LA 68 0 0.0% City I, FL 149 0 0.0% City J, TX 39 0 0.0% City K, TX 40 0 0.0% City L, TX 86 0 0.0% City M, NY 94 0 0.0% City N, CA 43 0 0.0% City O, MO 57 0 0.0% City P, MO 85 0 0.0% City Q, KS 85 0 0.0% City R, SC 38 0 0.0% City S, NC 47 0 0.0% City T, NC 62 0 0.0% City U, SC 73 0 0.0% City V, IL 88 0 0.0% City W, WI 73 0 0.0% City X, WV 45 0 0.0% City Y, KY 50 0 0.0% City Z, PA 139 0 0.0% City AA, OH 235 0 0.0%


 

Opportunities Already in Process (...some need acceleration) Examples of MSAs with Penetration Rising Waterlase has footholds in all of the top 100 MSAs in the United StatesPenetration rates vary and are growingThey can be accelerated 5/5/2010 8 City A , IN 432 10 2.3% City B,MI 755 19 2.5% City C, IN 909 30 3.3% City D, MI 2,974 63 2.1% City E, IL-IN-WI 6,040 134 2.2% City F, PA 195 10 5.1% City G, PA-NJ-DE-MD 3,763 75 2.0% City H, CA 3,490 66 1.9% City I, CA 1,571 79 5.0% City J, MS 258 10 3.9% City K, AR 293 10 3.4% City L, LA 606 16 2.6% City M, MS 420 17 4.0% City N, FL 388 13 3.3% City O, FL 670 14 2.1% City P, FL 1,374 14 1.0% City Q, FL 1,026 39 3.8% City R, FL 3,273 63 1.9% City S, TX 1,124 17 1.5% City T, TX 2,772 42 1.5% City U, NY 483 12 2.5% City V, NY 609 13 2.1% City W, NY 707 16 2.3% City X, NY-NJ-PA 13,401 283 2.1%


 

Threats (Greatest Opportunity) - Penetration Only Beginning There are hundreds of mid-size to small cities where the potential for growth is high and we have a foothold already!Limited resources have held back effortsWe are fixing that now 5/5/2010 9 Practicing Est MDs Penetration City A, IN 34 1 3.0% City B, OH 34 1 2.9% City C, OH 39 1 2.5% City D, MI 46 1 2.2% City E, IN 49 1 2.0% City F, IN 70 1 1.4% City G, MI 81 1 1.2% City H, MI 107 1 0.9% City I, OH 59 2 3.4% City J, MI 64 2 3.1% City K, IN 68 2 2.9% City L, MI 69 2 2.9% City M, IN 74 2 2.7% City N, MI 116 2 1.7% City O, MI 358 2 0.6% City P, IN 56 3 5.4% City Q, IN 60 3 5.0% City R, MI 222 3 1.4% City S, MI 379 3 0.8% City T, MI 63 4 6.3% City U, IN 65 4 6.2% City V, IN-MI 119 4 3.4% City W, MI 152 4 2.6% City X, IN 174 6 3.4% City Y, MI 230 6 2.6% City Z, OH 302 7 2.3%


 

MSA Expansion Plan Expanded Sales and Greater Number of Local Events Many MSAs are small and major ones can be broken down further into areas doctors are more willing to travel withinLocal Waterlase doctors are being contacted and pursued for smaller events being scheduled at their officesOver 30 have been scheduled thus far for the second quarterEach MSA has been reviewed by the CEO and head of US sales and targets are being set for several hundred more for 2010...along with other events and programsThe sales force is expanding rapidly to make it happen... 5/5/2010 10


 

Sales Replacement and Ramp Up - Nearly All Dental Hires New Proven Sales Leadership Proven from Within 5/5/2010 11 11-13-09 1-1-10 2-1-10 3-1-10 4-1-10 6-1-10 Forecast 8-1-10 Forecast > 2 Years 8 9 9 9 9 11 11 1-2 Years 10 3 3 3 2 4 Months-1 Year 3 3 3 10 14 < 3 Months 2 3 5 11 11 10 11 Total Reps 20 15 20 26 25 31 36 6 Poor2 Hired 6 Out1 Hired 5 Hired 6 Hired All Trained 6 In Process More to Come VP Sales Out Interim Interim Perm 1 1 1 Full Time Directors 1 1 1 1 2 2 2 Sales Management 1 1 1 1 3 3 3 Total Sales 21 16 21 27 28 34 39 Open Territory 4 9 6 2 3 0 0


 

Diode Competitiveness Opening the Door NOW Low price diodes came into the market heavily in 2009In 2009, sales began declining on ezlase due to competitionFewer diode and general laser leads decrease Waterlase leadsWe completed development on the iLase throughout 2009 and launched it February of 2010 Demonstration units being shippedOrders are coming in domestically and from international countries for iLase at very good rateiLase is raising attention and introductions to ezlase and Waterlase...both with end-user sales increases in April 5/5/2010 12


 

Up-Sell Strategy A Total Laser Solution for Every Dentist 5/5/2010 13 Entry Level All-Tissuecommon restorative and pediatric procedures The Personal Lasercommon, everyday soft- tissue procedures Advanced soft- tissueWhitening &Pain Therapy Total Diode Solutioncommon & advanced soft- tissue procedures plus whitening andpain therapy Economi cal Hard- andSoft- Tissue Best in Class All-Tissuecommon & advanced restorativeperiodonticsendodonticscosmeticsurgicalpediatric procedures Fastest CuttingPeriodonticsEndodontics


 

All Pieces Repeat Full Product Line Message 5/5/2010 14


 

Historic 10 Year Biolase Sales Analysis 1998 to 2005 - High growth to slow down2006 and 2007 - Transition to distribution from direct modelProduct Lines Under Distribution2008 and 2009 Sales and Profit BridgeGave up unprofitable international direct sales, which are expected to rise again under distribution2008 included non-repeating C100 stocking orders and demonstration unit sales of Waterlase and ezlaseDeals struck with Henry Schein and P&G years ago fully amortizedImpact of economic turmoil and all otherLessons Learned and Actions Taken in Light of History 5/5/2010 15


 

Historic Analysis Conducted Over 12 Months 2005 - When growth slowed In 2004 growth slowed and in 2005:A new CEO and EVP Sales entered the end of 2004 from the medical industryThe Waterlase complexity grew with the introduction of the Waterlase MDThe Waterlase price was increased over 30%$10,000 Soft-tissue only diode lasers entered the marketplaceBiolase infrastructure had not caught up with its size, impacting customer serviceWith new leadership and direction, sales people transition hit a rapid pace 5/5/2010 16 In Millions $ 1998 1999 2000 2001 2002 2003 2004 2005 Revenues $1.5 $7.0 $9.7 $16.5 $27.3 $48.8 $60.7 $62.0 Growth $5.5 $2.7 $6.8 $10.8 $21.5 $11.9 $1.3 Percent Growth 367% 39% 70% 65% 79% 24% 2% Average Price Point Average Price Point $47 $47 $47 $47 $62


 

Historic Analysis Conducted Over 12 Months 2006 Additional Transitions in Leadership and to Distribution In 2006:Waterlase prices increased another 13%The new medical CEO was replaced by a previous CEOThe new medical EVP Sales was replaced by a previous EVP SalesAt year end, the company transitioned from a direct to a distribution modelInternational sales growth made up full increaseDomestic sales had a slight decline, despite distribution stocking ordersIn 2007 Waterlase prices under distribution raised to over $80,000The CEO named in 2006 was replaced with another CEO, who was replaced in 2008Sales force tur nover continued at a high rate for new distribution model team 5/5/2010 17 In Millions $ 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Revenues $1.5 $7.0 $9.7 $16.5 $27.3 $48.8 $60.7 $62.0 $69.7 $66.9 Growth $5.5 $2.7 $6.8 $10.8 $21.5 $11.9 $1.3 $7.7 -$2.8 Percent 367% 39% 70% 65% 79% 24% 2% 12% -4% Average Price Point Average Price Point $47 $47 $47 $47 $62 $70 $80


 

Historic Analysis - Products Under Distribution Model 2006 - 2008 - Diodes and All Other grow double digit, Waterlase declines2006 Waterlase increases internationally, but decreases domestically2006 Lasersmile, a $25,000 diode not competitive against $10,000 diode entries2007 Launch of ezlase diode goes well, Waterlase declines accelerateEarly 2008, the fourth CEO in 3 years takes helm from Medical industry againSales team turnover high with CEO changes and transition to fit distribution/medical model2007 and 2008 Waterlase sales continue decline, despite stoc king orders and demo unit sales 5/5/2010 18 Revenues Revenues In Millions $ In Millions $ 2003 2004 2005 2006 2007 2008 Waterlase Waterlase 40.5 51.0 51.5 55.1 45.5 40.1 Diodes Diodes 5.9 6.7 5.6 3.5 9.4 12.3 Other 2.4 3.0 5.0 11.2 12.0 12.3 Total 48.8 60.7 62 69.7 66.9 64.6 Waterlase Waterlase 83% 84% 83% 79% 68% 62% Diodes Diodes 12% 11% 9% 5% 14% 19% All Other All Other 5% 5% 8% 16% 18% 19%


 

2009 Bridge to Sales Change and Bottom Line Breakeven New CEO Appointed April 2010 after bulk of sales losses in Q1...stock was less than $0.502008 vs 2009 Bridge - Critical to achieve approximate non-GAAP breakeven in 2009A. Demo units and C100 stocking orders for all products in 2008 non-repeatingB. Closure of international businesses with $5 million in temporary reductions as move toward distributionC. P&G Contract and initial Schein License fully amortized and does not carry forwardD. Economic downturn, diode competition, upgrades, significant cost re ductions and all otherMINIMUM PURCHASE AGREEMENT PUT HEAVIER RELIANCE UPON DISTRIBUTION FOR 2009 5/5/2010 19 $ Millions $ Millions Revenue/Profit Bridge Revenue/Profit Bridge Revenue/Profit Bridge Revenue/Profit Bridge Revenues Revenues 2006 2007 2008 A B C D 2009 Waterlase Waterlase 55 46 40 (7) (5) (5) 23 Diodes Diodes 3 9 12 (1) (2) 9 Other 11 12 12 (3) +1 11 Revenue 69 67 64 (8) (5) (3) (6) 43 Non-GAAP Non-GAAP Net Loss Net Loss (5) (4) +5 (3) +7 0


 

10 Year Historic Analysis Lessons Learned and Studies Price - Domestic price point rise from $50K to $80K an issueRise of diodes taking some business, but adding opportunityMedical device sales approaches and sales personnel historically not successful in dental lasers (2 tries in last 4 years)Distribution works with diodes and all other, but limited success with more complicated Waterlase saleFocused hands-on approach required in core domestic marketDistribution model best for international marketsMany accounts not seriously pursued for 4 years 5/5/2010 20


 

10 Year Historic Analysis Actions Taken on New Deal Price - Waterlase list price dropped to 2006 levelsDiodes - Best diode launched with up-sell strategyMedical device issue - Best internally performing DENTAL sales directors and managers promoted, and new hires from dentalDistribution - Added flexibility/control for Biolase on Lasers and continued strong distribution relation for consumables/otherDirect International Expensive - All changed to distributionMarket Coverage (non-Schein) - Greater potential sales to Biolase for expanding marketing efforts beyond Schein accountsRamping up now, but full impact expected last half of 2010 5/5/2010 21


 

Internal and External Independent Studies on Waterlase Adoption Internal users (2 years ago):Price - Addressed with iLase and new Waterlase pricing in new dealSpeed - Addressed with MD TurboTraining - Addressed over past 2 yearsExternal Independent Study (users and non-users last 3 months)Price - More in terms of ROILearning Curve - Simplicity/Intuitive nature of iLase a home run...more is coming for all productsReturn on Investment - Getting more published and explained by doctors and simplified in explanations...for example... 5/5/2010 22


 

Addressing ROI Dr. Rosenberg - Top luminary did a specific ROI presentation now included at http://lasercast.biolase.net/Dr. Golan - Top luminary did an ROI section in his presentation now included at http://lasercast.biolase.net/$300 to $600 per day - Simplified return message consistently started mid-2009 and having an impact: 5/5/2010 23 $300-$600 a day is typical of the revenue dentistsadd to their practice after making a Waterlase MD Turbopart of their treatment offerings.A study soon to be published by the Roger Levin Groupindicates that the Waterlase MD helps attract newpatients and increase treatment acceptance of day-todayrestorative cases that can cover the cost of a laser byproviding an alternative to needles and drills, for patientswho are anxious or fearful.When you are ready to move beyond restorative laserdentistry, the Waterlas e MD and Biolase's unmatchedtraining programs provide you with new easy-to-learnoptions for the management of moderate to severeperiodontal disease, endodontics, and soft tissueprocedures to add to your treatment offerings.Contact your Biolase Laser Specialist at 888-424-6527 oryour Henry Schein consultant at 800-645-6594 to


 

NEW Article with new independet ROI approach: Surprising trends in laser usage By Roger P. Levin, DDS Dental Economics - March 2010 5/5/2010 24 IntroductionLasers are an excellent instrument for everydaydentistry. This statement may surprise many dentists.But a recent study indicates that highly successfulpractitioners are using lasers for common dentalprocedures, including caries treatment and restorations.Research conducted by Levin Group found that generaldentists who use lasers for routine care could create a betterpatient experience and increase practice production, the idealcombination from a practice-management perspective.Higher case accept ance resulting from happier patientswas not the only important benefi t reported by dentistsusing the laser to perform everyday dentistry. In the samestudy, doctors attribute robust production growth in partto adding a laser to their standard tray. Everyday dentistry,such as the treatment of caries (even Class V compositerestorations), is successfully and effectively performed,often in less time, with the use of lasers."I use the laser with every patient that I see on myschedule," said one research particip ant. Another dentistsaid, "Integrating the laser into our practice has increasedproduction between $12,500 and $15,000 per month." Growing the practiceLasers increase production of common dental procedures.While most dentists have struggled during the economicslowdown, many practices with lasers have actually grownduring this period.The research indicates that dentists who own lasersare achieving production gains, not by adding complexor "exotic" treatment, but by more effi ciently treating theconditions that present most frequently in the practice,such as caries and damaged/broken teeth.These successful dentists are seeing more new pa tientscoming into their practices and accepting treatment. Onedentist said, "New patients travel long distances to cometo my practice because my patients have told them abouthow much easier dental treatment is with my laser."Practices have also attracted new patients with advertisementsthat offer "an alternative to needles and drills."Patients who responded to this message told doctors thatthey appreciated not only a way to avoid injections anddrillings, but also that these dentists stood out as progressiveand patient-friendly...


 

Learning Curve - "Can I get this?" Covered in March 2010 Levine article as well as ROIReprinting for distributionTraining websited establishedRefresher training establishedLuminary settings and presentations all standardized10 "push the button" presets with custom capabilitySimplicity/Intuitive nature and use for iLase a landmark!Working same simplicity/intuitive feel into other products over time 5/5/2010 25


 

Next Steps for Greater Expansion Strengths, Weaknesses, Opportunities, Threats (SWOT) Brand Equity - recognized as the leader in laser dentistry and a high tech leader in dentistryStrong in-house engineering and clinical talent and experiencePatent positionDeep knowledge of dental industryRelationships with regulatory offices and universitiesDistribution channels in place, with existing end-customer base and product championsiLase establishing broader user base for future up-sellsRoom to grow in many areas without major change of approach...even more with changes happening now... 5/5/2010 26


 

SWOT - Weaknesses Despite strong individual talent, we are resource limitedNegative profitability and cash flow from operations for prior 6 years left challenging balance sheet, despite 2009 return to breakeven on non-GAAP basisAlthough not necessarily in the "high-tech chasm" we could be there in several years...taking steps now...Do not have infrastructure in place to compete seriously in other industries (e.g., pain therapy, veterinary, ophthalmology, etc.) and it would take added capital...but limited low cost underwayThe larger population of dentists are growing more positive, but still need a compelling reason to use lasers...a boost 5/5/2010 27


 

SWOT - Opportunities Approximately 160K practicing dentists in the US, and 700K dentists in worldwide areas where we have distributionWith 67 MSAs above 5% and many well below, vast opportunity still exist for current product and approach with greater sales effort and coverageEncourage/convince dental schools to teach lasersLobby the government and insurance providers to promote lasersDevelop new applications/gain more products for the dental marketToothbrushes, Other iLase add-ons, etc.Technology can be applied to other markets with investmentsOphthalmology, Pain Management, Vet...Create a "crisis" to integrate lasers into dental practicesAccelerate sales today and to ensure breach of potential "chasm" tomorrowMarket st raight to patients...create patient demand...some impacting dentists today... 5/5/2010 28


 

SWOT - Threats and Actions Competitive Lawsuit - Company will vigorously defend alleged "design patent" infringementSupplier power, especially single-source - Relations good and solidified for long-term on key areasDistributor power, especially as we are very dependent on one - the new deal takes steps to partially address and is in transition now...with greater flexibility on "outside" accountsCompetition - despite our brand equity and patent protection, some competitors have deeper financial pocketsFinancially Limited Resources - Greater sales force, distribution model shifts and expanded marketing efforts and new products require cash - Current S-3 shelf registration filing to raise up to $9.5 million 5/5/2010 29


 

Expanding Beyond 5% and 10% Penetration Creating Consumer Demand 5/5/2010 30 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion Penetration in various markets


 

Creating Consumer Demand Strength: We have a large base of happy dentists and even happier patients at those dentists...and a large base of uneducated final consumersWeakness: Non-patients are skeptical of claims "too good to be true" and could believe non-Laser dentists before costly advertising...so another way is neededOpportunity: Utilizing the thousands of doctors and hundreds of thousands of happy patients to educate the millions in the general population on a viral basisThreats: Today, the lack of general population knowledge is creating minimal "pull" for dentists to get into Waterlase dentistry and word is not getting out quickly enough 5/5/2010 31


 

STEP 1 - Build a base of credible and easy to understand reference materials to help win confidence and show evidence of results to doctors, patients and decision makers Been working on development for last 12 months...well underwayEstablish a base consumer website with references, the whys, testimonials, news references and links to doctors - Done (Over 100,000 hits year now): http://www.laserdentistry.net/Establish library of productive Webinars that can be placed in "evidence sites"Establish a base website with video clips of procedures, key doctor presentations, news clips, comparisons, etc. - Done with about 20,000 hits after little over 1 month: http://lasercast.biolase.net/Set up a company site on Biolase Facebook, Biolase Twitter and Biolase YouTube - All Done and MovingEstablish some interesting additional footage for key public/patient interest groups (kids and moms...and all) - Example: My First Laser Visit CARTOON, which is DONE and can be seen at: http://www.youtube.com/watch?v=OvZgTD42RjU 5/5/2010 32


 

STEP 2 - Work to engage a small base of references and referrals to the "evidence and interesting sites" through "family and friends" Set up Biolase Facebook - Done: Over 600 "friends" following NOW already and growing rapidly for regular Biolase updatesTwitter and You Tube sites - DonePersonal e-mail blasts (hopefully passed on) to drive friends to see "evidence and interest sites" - Done: About 2,000 hits on Tooth Tales, About 6,000 hits on iLase, 20,000 hits on LasercastThese kind of efforts keep growing naturally and exponentially over time...and we have just begun this phase and have growing internal expertise, that will be supplemented 5/5/2010 33


 

STEP 3 - Find ways to engage thousands of happy dentists and hundreds of thousands of happy customers in telling their story, with something to go with it...start simple, grow Multiple efforts underway and in development now that base of support materials at critical mass...Example:Contest for patients to tell their story to their friends and to tie us in, so we can update them on the latest and greatest going forwardDoctors get benefits of free advertising for their practice (probably not taking advantage of now) through state of the art viral marketingDoctors get an easy way to bring it up if they like, in the form of a contest for their patientsBest source of reference TO GET SOMEONE TO FIND A WATERLASE DENTIST is a friend who had a good experience...and friends and links criss-cross all over the countryFor example: if we get only 500 doctors (less than10% of base) suggesting it to 50 patients each (that's 25,000 patients)Then assume of those 25,000 patients only 10,000 try it with about 100 friends each (a small average)...that's 1 million people who have been touched by someone they knowThen over time, the rest of the team comes in and we believe the numbers could start really jumpingJust one example 5/5/2010 34


 

Reaching out to New Portions of the US Market Before the 2006 Henry Schein deal, estimates are that over 85% of sales were non-core Schein accountsFour years after the deal it is estimated that the opposite is true and few sales are non-core ScheinEfforts have only just begun to pursue those other segments of the market, but April end-user orders we about 30% non-core Schein alreadyThis incremental target market is substantialNext week (May 10) Biolase is distributing its single largest mailing ever to these new accountsThe same message will be distributed throughout Schein accounts through their media and in national dental magazinesThe entire market is expected to be covered 5/5/2010 35


 

Summary 2009 - Bottom-line restructuring to reach breakeven and survive economic turmoilQ4/Q1 2010 - Top-line restructuring in contracts, sales management and product lineSALES FORCE and SALES LEADERSHIPDISTRIBUTIONPRODUCTS TODAY AND MORE TO COMECOVERAGEEXPOSURE GROWINGAPRIL 2010 - First month with all recent changes largely effectiveWaterlase and ezlase end-user shipments both approximately DOUBLE prior year AprilEfforts for expanded market penetration still ramping, but taking groundOrders coming in domestically and abroad on the iLase2010 OutlookWe believe end-user sales and product interest is rising rapidlyMany sales still Henry Schein based, but outreach is expandingP&G deal, Pain Management and Ophthalmology still in discussionsConsumer awareness foundation laid and efforts being launched 5/5/2010 36


 

Thank You PRELIMINAR Y