October 9, 2006
UltraShape™ Contour I Featured in ASPS Hot Topics Panel

UltraShape North America Forms Multidisciplinary Scientific Advisory Board
SAN FRANCISCO, October 9 - The UltraShape™ Contour I, the first non-invasive ultrasound solution for body contouring, was featured in the "Non-Surgical Body Contouring" panel at this year's Hot Topics in Plastic Surgery seminar at Plastic Surgery 2006, the annual conference of the American Society of Plastic Surgeons (ASPS). The much-watched Hot Topics in Plastic Surgery presents and assesses new innovations by some of the world's leading plastic surgeons.

In continued steps toward establishing its operations in North America, UltraShape NA Inc., a wholly owned subsidiary of UltraShape Inc., also announced from the conference the formation of a U.S. Scientific Advisory Board consisting of a multidisciplinary group of experts in body contouring and non-invasive aesthetic procedures, drawing on leading academicians, plastic surgeons and dermatologists.

Hot Topics
Christopher Inglefield, BSC, FRCS (Plast), was selected to present on his extensive clinical experience with the UltraShape™ Contour I in his London plastic surgery practice since the product received the CE Mark in July 2005. His data demonstrated his patients experienced an average 6.3 centimeter (approximately 2.5 inch) reduction in circumference after three treatments. "Specialists such as myself who are experienced with the Contour I are advancing treatment protocols that have yielded incremental results with over ninety percent patient satisfaction," he reported. "Also, our patients tell us how they love the fact that the UltraShape™ treatment is a non-invasive, no-downtime, painless approach to treat troublesome fat deposits." Inglefield also noted that the UltraShape™ technology preserves vasculature, nerves, and connective tissue and that his patients have experienced no known adverse effects.

Since its launch outside the United States last year, the UltraShape™ Contour I has been successfully integrated into nearly 150 aesthetic practices in 37 countries. It's been used in more than 14,000 patient treatments with no reported serious side effects.

Mr. Inglefield is a leading plastic and reconstructive surgeon in the United Kingdom specializing in facial aesthetics and breast and body contouring, and he is a Member of the Royal College of Surgeons, the British Association of Plastic Surgeons, British Burn Association, British Microsurgical Society, British Association of Surgical Oncology and the Royal Society of Medicine.

UltraShape North America U.S. Scientific Advisory Board
To guide its continued rigorous scientific and research efforts and provide clinical insights into product design in commercial applications, UltraShape North America formed a Scientific Advisory Board comprised of nationally recognized experts in non-invasive aesthetic procedures, including leading plastic surgeons, dermatologists as well as academicians. The Board is chaired by Jeffrey Kenkel, MD, FACS, Professor and Vice Chairman of the Department of Plastic Surgery and the Director of the Clinical Center for Cosmetic Laser Treatment at The University of Texas Southwestern Medical Center. Members include pioneers in earlier body contouring techniques; current and past officers and directors of the American Society of Plastic Surgeons, American Society of Aesthetic Plastic Surgery, North American Lipoplasty Society, American Society for Laser Medicine and Surgery, American Academy of Dermatology, American Society of Dermatologic Surgery, and the leading private practitioners and renowned experts in metabolism research.

"Since UltraShape North America was established earlier this year, we've made significant progress toward preparing for commercialization of the Contour I in the United States and Canada," said Bob Gerberich, president of UltraShape North America. "We're fortunate to be working with scientific and clinical thought leaders of such stature. As a result of these relationships and the continued advancements of treatment protocols and patient outcomes, we are positioned well in North America to build on the great commercial success that Contour I has enjoyed outside the United States."

About the ASPS Hot Topics in Plastic Surgery Seminar
Sponsored by the ASPS, the largest plastic surgery organization in the world, the seminar was held on October 7 as a special educational program designed solely for the purpose of research and education in plastic surgery. Many topics presented at past Hot Topics seminars are now mainstream techniques use in physician offices, including ultrasound and power assisted liposuction and non-invasive skin tightening and wrinkle reduction. The subjects presented during this seminar are under investigation and development and are often, as in the case of the UltraShape™ Contour I, pending FDA clearance.

About the Contour I
The UltraShape™ Contour I with G-NIUS™ (Guided, Non-Invasive, Focused Ultrasound, Selective) Technology is the first non-invasive ultrasound solution for body contouring that has been clinically demonstrated to deliver measurable circumferential reduction in a single treatment. The G-NIUS™ Technology is based on two proprietary technological innovations:

Non-Invasive Focused Ultrasound
The UltraShape™ G-NIUS™ technology is based on focused therapeutic ultrasound which is designed to selectively target adipocytes (fat cells). A predetermined amount of ultrasound energy is applied to the subcutaneous fat layer where acoustic waves converge in a confined focal volume causing a selective mechanical affect on fat cell membranes.

Most importantly, since energy is delivered in pulses, there is no significant temperature elevation. This mechanical effect allows for tissue selectivity - only adipose cells within the targeted area are affected while surrounding tissues including blood vessels, nerves, and connective tissue remain unharmed.

Advanced Tracking and Guiding Software
The UltraShape™ treatment is guided by a real-time tracking and guidance system designed to deliver smooth, uniform body contouring results. The system's software algorithm maps the treatment area and guarantees adherence to pre-determined treatment parameters minimizing risk of contour irregularities, a common side effect of liposuction. The tracking system also addresses the dynamic nature of the treated area, as it monitors and synchronizes the body's position in real-time, enabling the patient to move freely without impacting the treatment. Precision and safety are reinforced by an imaging transducer which provides real-time feedback on acoustic contact, thus ensuring proper transducer-to-skin contact and efficient energy delivery to the treatment area.

The UltraShape™ Contour I system is not cleared by the FDA for marketing in the United States.

About UltraShape North America
UltraShape NA Inc., headquartered in San Ramon, Calif., is a wholly owned subsidiary of UltraShape Inc., a privately held Delaware Corporation. UltraShape Inc. operates through its wholly owned subsidiary UltraShape Ltd. headquartered in Israel. UltraShape Inc. develops, manufactures and markets innovative, non-invasive solutions for the aesthetic medical field. The UltraShape expert team of scientists and engineers are dedicated to the development of cutting-edge non-invasive body-contouring technology in a bid to enhance patients' self-image and sense of well-being. Additional information is available at www.ultrashape.com.

The broadcast is available to you as a video file.

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