(ENDOCARE LOGO)
    
    201 Technology Drive  Irvine  California 92618Telephone: (949) 450-5400Facsimile: (949) 450-5300Email: IR@endocare.comWebsite: www.endocare.com
 FOR RELEASE on November 10, 2008 at 4:05 pm (EST)
 Investor
Contact:
    

Media Contact:
    

For Additional Information:Matt Clawson
    
    Len Hall
    
    Terry Noonan, CEOAllen & Caron, Inc.
    
    Allen & Caron, Inc.
    
    Michael R. Rodriguez, CFO(949) 474-4300
    
    (949) 474-4300
    
    Endocare, Inc.matt@allencaron.com
    
    len@allencaron.com
    
    (949) 450-5400www.allencaron.com
    
    www.allencaron.com
    
    www.endocare.com
 ENDOCARE REPORTS FINANCIAL RESULTS FOR THIRD QUARTER 2008
 Net Revenues Rise, Net Loss Narrows Compared to Prior Year;
Operating Loss Declines 26%
   Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2008
    
    2007
    
    2008
    
    2007Estimated domestic cryoablation procedures
    
    
    2,263
    
    
    
    2,353
    
    
    
    7,122
    
    
    
    7,104Number of cryoprobes sold:Straight probes
    
    
    8,660
    
    
    
    9,957
    
    
    
    28,017
    
    
    
    29,852Right-angle probes
    
    
    2,084
    
    
    
    1,564
    
    
    
    6,058
    
    
    
    4,637Total
    
    
    10,744
    
    
    
    11,521
    
    
    
    34,075
    
    
    
    34,489




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Entry Into Definitive Merger Agreement
  Conference Call and Slides Information
 http://ir.endocare.com/events.cfm http://ir.endocare.com/events.cfm
 Use of Non-GAAP Financial Measures
   About Endocare
  IMPORTANT DISCLAIMERS
  Statements in this press release that are not historical facts are forward-looking statements,
including statements relating to the merger and the financing, that involve risks and
uncertainties. Among the important factors that could cause actual results to differ materially
from those in the forward-looking statements include, but are not limited to, those discussed in




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Risk Factors in the Companys Forms 10-K, Forms 10-Q and other filings with the Securities
and Exchange Commission. Such risk factors include, but are not limited to, the following items:
the Company has a limited operating history with significant losses and losses may continue in the
future; the Company may require additional financing to sustain its operations and without it the
Company may not be able to continue operations; the Companys business may be materially and
adversely impacted by the loss of the Companys largest customer or the reduction, delay or
cancellation of orders from this customer or if this customer delays payment or fails to make
payment; the Company may be required to make state and local tax payments that exceed the Companys
settlement estimates; uncertainty regarding the ability to convince health care professionals and
third party payers of the medical and economic benefits of the Companys products; uncertainty
relating to third party reimbursement; the risk that intense competition and rapid technological
and industry change may make it more difficult for the Company to achieve significant market
penetration; and uncertainty regarding the ability to secure and protect intellectual property
rights relating to the Companys technology. The actual results that the Company achieves may
differ materially from any forward-looking statements due to such risks and uncertainties. The
Company undertakes no obligation to revise, or update publicly, any forward-looking statements for
any reason.
 IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC




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##### 



ENDOCARE, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Total revenues
    
    $
    7,599
    
    
    $
    7,326
    
    
    $
    23,672
    
    
    $
    22,773Costs and expenses:Cost of revenues
    
    
    2,275
    
    
    
    2,171
    
    
    
    7,127
    
    
    
    7,506Research and development
    
    
    626
    
    
    
    699
    
    
    
    1,765
    
    
    
    1,935Selling and marketing
    
    
    3,423
    
    
    
    3,500
    
    
    
    11,120
    
    
    
    11,362General and administrative
    
    
    2,951
    
    
    
    2,881
    
    
    
    9,234
    
    
    
    9,556Gain on recovery of note receivable
    
    
    (750
    )
    
    
    
    
    
    
    (750
    )
    
    
    Litigation settlement, net of
related legal expenses
    
    
    
    
    
    
    (677
    )
    
    
    
    
    
    
    (677
    )Total costs and expenses
    
    
    8,525
    
    
    
    8,574
    
    
    $
    28,496
    
    
    
    29,682Loss from operations
    
    
    (926
    )
    
    
    (1,248
    )
    
    
    (4,824
    )
    
    
    (6,909
    )Interest income, net
    
    
    5
    
    
    
    264
    
    
    
    181
    
    
    
    402Net loss
    
    $
    (921
    )
    
    $
    (984
    )
    
    $
    (4,643
    )
    
    $
    (6,507
    )Net loss per share  basic and diluted
    
    $
    (0.08
    )
    
    $
    (0.08
    )
    
    $
    (0.39
    )
    
    $
    (0.59
    )Weighted average shares of common
stock outstanding
    
    
    11,972
    
    
    
    11,595
    
    
    
    11,854
    
    
    
    10,947




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##### 



ENDOCARE, INC. AND SUBSIDIARY
RECONCILIATION OF GAAP NET LOSS TO EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION, AMORTIZATION AND STOCK COMPENSATION EXPENSE
(ADJUSTED EBITDA)
  Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007GAAP net loss
    
    $
    (921
    )
    
    $
    (984
    )
    
    $
    (4,643
    )
    
    $
    (6,507
    )Add:Depreciation
    
    
    123
    
    
    
    136
    
    
    
    376
    
    
    
    464Amortization of intangibles
    
    
    125
    
    
    
    125
    
    
    
    376
    
    
    
    410Interest expense
    
    
    24
    
    
    
    24
    
    
    
    88
    
    
    
    135Subtotal
    
    
    (649
    )
    
    
    (699
    )
    
    
    (3,803
    )
    
    
    (5,498
    )Add: Stock compensation expense
    
    
    (616
    )
    
    
    1,356
    
    
    
    810
    
    
    
    2,949Adjusted EBITDA
    
    $
    (1,265
    )
    
    $
    657
    
    
    $
    (2,993
    )
    
    $
    (2,549
    )




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##### 



ENDOCARE, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
 September 30,
    
    
    December 31,2008
    
    
    2007(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    5,346
    
    
    $
    7,712Accounts receivable, net
    
    
    3,579
    
    
    
    3,530Inventories, net
    
    
    3,108
    
    
    
    3,022Prepaid expenses and other current assets
    
    
    597
    
    
    
    2,081Total current assets
    
    
    12,630
    
    
    
    16,345Property and equipment, net
    
    
    724
    
    
    
    850Intangibles, net
    
    
    2,701
    
    
    
    3,077Investments and other assets
    
    
    993
    
    
    
    989Total assets
    
    $
    17,048
    
    
    $
    21,261LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    4,042
    
    
    $
    2,194Accrued compensation
    
    
    2,111
    
    
    
    3,895Other accrued liabilities
    
    
    2,931
    
    
    
    3,034Loan payable
    
    
    880
    
    
    
    880Obligations under capital lease  current portion
    
    
    26
    
    
    
    28Total current liabilities
    
    
    9,990
    
    
    
    10,031Deferred compensation
    
    
    120
    
    
    
    227Obligations under capital lease  less current portion
    
    
    69
    
    
    
    84Stockholders equity:Preferred stock, $0.001 par value; 1,000 shares
authorized; none issued and outstanding
    
    
    
    
    
    
    Common stock, $0.001 par value; 50,000 shares
authorized; 11,811 and 11,762 issued and
outstanding as of September 30, 2008 and December
31, 2007, respectively
    
    
    12
    
    
    
    12Additional paid-in capital
    
    
    201,256
    
    
    
    200,663Accumulated deficit
    
    
    (194,399
    )
    
    
    (189,756
    )Total stockholders equity
    
    
    6,869
    
    
    
    10,919Total liabilities and stockholders equity
    
    $
    17,048
    
    
    $
    21,261