HealthTronics Withdraws Proposal to Acquire Endocare

HealthTronics, Inc. has withdrawn its proposal to acquire Endocare Inc.

HealthTronics officials sent a letter to the Board of Directors of Endocare rescinding its proposal to acquire all outstanding shares of Endocare’s common stock for $2.28 per share.

Commenting on the letter, James Whittenburg, president and CEO of HealthTronics, stated: “Because there has been no dialogue with Endocare regarding HealthTronics’ proposal, and because HealthTronics has no insight into Endocare’s performance since the end of second quarter 2008 other than the visibility we have as the largest purchaser of Endocare’s products, we believe it prudent to withdraw our proposal.”

The Sept. 11 letter HealthTronics sent to Endocare’s Board of Directors reads:

Dear Members of the Board:

I am writing to inform you that HealthTronics has decided to withdraw its proposal (including all prior proposals) to acquire all of the outstanding shares of Endocare’s common stock for $2.28 per share. It has been five weeks since we made our initial proposal and, unfortunately, despite out repeated attempts to engage Endocare in a dialogue regarding our now-withdrawn proposal, there has been no such dialogue.

A significant amount of time has passed since Endocare reported its second quarter 2008 results and since Endocare held its second quarter 2008 analyst call. We have no insight into Endocare’s financial or operational performance since the end of the second quarter beyond our insight as the largest purchaser of Endocare’s products.

Accordingly, HealthTronics believes it prudent to withdraw its proposal to acquire all of the outstanding shares of Endocare’s common stock.