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                                                                  Exhibit 99.1


                                           Paul Broyer,
                                           Candela Corporation 508-358-7400 x435


           CANDELA ANNOUNCES INTERIM DECISION OF ARBITRATOR IN DISPUTE
                WITH THE REGENTS OF THE UNIVERSITY OF CALIFORNIA


WAYLAND, MA, February 17, 2005 -- Candela Corporation (NASDAQ: CLZR) announced
today that the arbitrator has issued an interim decision in the dispute
concerning Candela's royalty obligations under its Amended and Restated License
Agreement with The Regents of the University of California (the "Regents").
Candela licenses certain patent rights from the Regents relating to technology
incorporated in Candela's dynamic cooling device (the "DCD").

The arbitrator found in favor of the Regents as to the primary issue in dispute,
finding that Candela is obligated to pay royalties on the good faith list prices
of its Sclero, SPTL, GentleLASE and GentleYAG laser systems when those systems
are sold with DCDs, and not just on the good faith list prices of the DCDs for
sale with those systems.

The arbitrator denied the Regents' request for the right to declare a forfeiture
of Candela's license with the Regents, and found in Candela's favor on the
remaining monetary disputes concerning Candela's past royalty payments to the
Regents.

The arbitrator will issue a final decision with actual damages after further
post-arbitration submissions by the parties as to calculation of damages.
Because the Regents prevailed on the primary issue in dispute, as part of the
damages award, Candela will be obligated to reimburse the Regents for its costs
and fees associated with the arbitration, as well as the amount of unpaid
royalties computed in accordance with the final decision.

The Regents have asserted past due royalty damages of approximately $3.5 million
together with interest thereon through the quarter ended July 3, 2004, and
during the pendency of the arbitration, Candela deposited approximately $3.4
million into an interest-bearing escrow fund to be paid in whole or in part to
Candela or the Regents as determined by the arbitrator. Candela will take a
charge for the related expense in the fiscal quarter in which the arbitrator
issues his final decision. As a result of the arbitrator's interim ruling,
Candela will incur royalty obligations to The Regents on future sales of the DCD
at a higher royalty rate than it has recognized on DCD sales over the past few
years.

Gerard E. Puorro, President and Chief Executive Officer, said "We are
disappointed with the outcome of the arbitrator's interim decision, but we
observe that the arbitrator made a finding that Candela acted in good faith with
respect to its actions. Moreover, while Candela will have to pay higher
royalties to The Regents going forward, The Regents were unsuccessful in their
attempt to terminate our exclusive license."


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ABOUT CANDELA:

Candela Corporation, an ISO-9001 certified company, develops, manufactures, and
distributes innovative clinical solutions that enable physicians, surgeons, and
personal care practitioners to treat selected cosmetic and medical conditions
using lasers, aesthetic laser systems, and other advanced technologies. Founded
near Boston in 1970, the company markets and services its products in over 64
countries from offices and distributors in the United States, Europe, Japan,
China and other Asian locations. Candela established the aesthetic laser market
16 years ago, and currently has an installed base of 8,000 lasers worldwide.
Candela is an Equal Opportunity and Affirmative Action Employer
(Male/Female/Handicapped/Veteran). Visit Candela on the Web at
http://www.candelalaser.com.

SAFE HARBOR STATEMENT: Except for the historical information contained herein,
this news release contains forward-looking statements that constitute Candela's
current intentions, hopes, beliefs, expectations or predictions of the future,
which are therefore inherently subject to risks and uncertainties. Such
statements may relate to, among other things, our future revenue, gross margin,
expense levels and earnings, our growth prospects, market acceptance of our
products, the strength of our distribution channels, our ability to add new
products, our ability to expand regulatory approvals and the liquidity of our
common stock. The risks and uncertainties that may affect forward-looking
statements include, among others: the cancellation or deferral of customer
orders, dependence on a small number of strategic distribution relationships,
difficulties in the timely development and market acceptance of new products,
unanticipated increases in expenses, market developments that vary from the
current public expectations concerning the growth of the laser industry,
increased competitive pressures, changes in economic conditions, or difficulties
in obtaining timely regulatory approvals. Further information on factors that
could affect Candela's performance is included in Candela's periodic reports
filed with the SEC, including but not limited to, Candela's Annual Report on
Form 10-K for the year ended July 3, 2004, and subsequent Quarterly Reports on
Form 10-Q. Candela cautions readers not to place undue reliance upon any such
forward-looking statements, which speak only as of the date made. Candela
expressly disclaims any obligations or undertaking to release publicly any
updates or revisions to any such statements to reflect any change in Candela's
expectations or any change in events, conditions or circumstances on which any
such statement is based.

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