HealthTronics Announces Radiation Therapy Acquisition, Updated 2008 Guidance, and Stock Repurchase Program

  
    
  
  
    
      HealthTronics, Inc. (NASDAQ: HTRN), a leading provider of urology 
      services and products, today announced that it has acquired Ocean 
      Radiation Therapy, Inc. (“Ocean”), 
      an entity that provides services to Atlantic Urological Associates’ 
      IGRT cancer treatment center, that it has issued updated 2008 guidance, 
      and that its Board of Directors approved up to $10 million of 
      repurchases of HealthTronics common stock.
    
    
      Radiation Therapy Acquisition and Other 
      Strategic Acquisition Opportunities
    
    
      HealthTronics acquired all of the outstanding capital stock of Ocean 
      from Atlantic Urological Associates, P.A. (“AUA”). 
      Ocean provides IGRT technical services to AUA’s 
      IGRT cancer treatment center.
    
    
      Located in Daytona Beach, Florida, AUA is a nationally recognized 
      urology practice comprised of 13 physicians. The practice’s 
      IGRT center began operations in 2006 and combines leading edge radiation 
      oncology with patient centered care. More than 250 prostate cancer 
      patients are treated at the center annually.
    
    
      James Whittenburg, President and CEO of HealthTronics, commented, “This 
      transaction strengthens our position in the IGRT space by aligning 
      HealthTronics with a prominent group of urologists and a cancer 
      treatment center with strong historical profits. In addition to being 
      accretive from day one, we expect to be able to leverage this 
      acquisition to further fuel the momentum in our de novo IGRT development 
      efforts.”
    
    
      Dr. Jeffrey Dann, a key AUA physician added, “We 
      are thrilled to have HealthTronics as a partner in the operation of our 
      cancer center. As an established ally of the urologist, HealthTronics 
      provides stability in a complex regulatory and financial environment.”
    
    
      HealthTronics continues to look at other strategic acquisition 
      opportunities and believes conditions in the market favor HealthTronics’ 
      strong financial position, national platform of urologist relationships, 
      and diversification within the urology services space.
    
    
      Updated 2008 Guidance
    
    
      The continued strength of HealthTronics’ core 
      business and the closing of recent acquisitions lead to the following 
      guidance for third quarter 2008: earnings per share for the three months 
      ended September 30, 2008 is expected to be $.03 per share. HealthTronics 
      reaffirms its previously-announced guidance for 2008 revenues and 
      adjusted EBITDA.
    
    
      Stock Repurchase Program
    
    
      HealthTronics’ Board of Directors approved a 
      plan to repurchase up to $10 million of HealthTronics common stock. 
      Under the repurchase program, HealthTronics anticipates that the stock 
      will be repurchased through privately negotiated transactions or on the 
      open market. HealthTronics intends to comply with the SEC’s 
      Rule 10b-18, and the repurchases will be subject to market conditions, 
      applicable legal requirements, and other factors.
    
    
      “HealthTronics’ 
      Board of Directors believes that HealthTronics’ 
      stock is a good long-term investment,” said 
      Mr. Whittenburg. “We believe this 
      repurchase program adds significant flexibility as management considers 
      potential uses of capital. While our primary objective continues to 
      center on de novo development and strategic acquisitions, we believe 
      instability in the equity markets may create opportunities to enhance 
      value creation for our shareholders through disciplined repurchases that 
      will produce long-term benefits for HealthTronics and its shareholders.”
    
    
      On October 8, 2008, pursuant to the stock repurchase program, in a 
      private transaction, HealthTronics repurchased 1.7 million shares of 
      HealthTronics common stock from Prides Capital Partners, L.L.C. for an 
      aggregate purchase price of $3,740,000.
    
    
      About HealthTronics, Inc.
    
    
      HealthTronics is a premier urology company providing an exclusive suite 
      of healthcare services and technology including urologist partnership 
      opportunities, surgical and capital equipment, maintenance services 
      offerings, and anatomical pathology services. For more information, 
      visit www.healthtronics.com.
    
    
      Forward-Looking Statements
    
    
      Statements by the Company's management in this press release that are 
      not strictly historical, including statements regarding plans, 
      objectives and future financial performance, are "forward-looking" 
      statements that are made pursuant to the safe harbor provisions of the 
      Private Securities Litigation Reform Act of 1995. In particular, 
      statements in this press release regarding future outlook or future 
      revenue growth are forward-looking statements. Although HealthTronics 
      believes that the expectations reflected in the forward-looking 
      statements in this press release are reasonable, no assurance can be 
      given that the expectations will prove to be correct. Factors that could 
      cause actual results to differ materially from HealthTronics' 
      expectations include, among other things, the existence of demand for 
      and acceptance of HealthTronics' products and services, maintaining 
      relationships with physicians and hospitals, governmental regulations 
      and changes thereto, regulatory approvals, economic conditions, the 
      impact of competition and pricing, successful integration of acquired 
      businesses, financing efforts and other factors described from time to 
      time in HealthTronics' periodic filings with the Securities and Exchange 
      Commission.
    
    
      The statements in this press release are made as of the date of this 
      press release, even if the press release is subsequently made available 
      by the Company on its web site or otherwise. The Company does not assume 
      any obligation to update the forward-looking statements provided herein 
      to reflect events that occur or circumstances that exist after the date 
      hereof.