Endocare Inc (1003464) SEC Filing 10-Q Quarterly report for the period ending Tuesday, September 30, 2008

		201 Technology Drive • Irvine • California •92618
		Telephone: (949) 450-5400
		Facsimile: (949) 450-5300
		Email: IR@endocare.com
		Website: 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, CEO
	Allen & Caron, Inc.		Allen & Caron, Inc.		Michael R. Rodriguez, CFO
	(949) 474-4300		(949) 474-4300		Endocare, Inc.
	matt@allencaron.com		len@allencaron.com		(949) 450-5400
	www.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%

IRVINE, Calif. (November 10, 2008) . . . Endocare, Inc. (NASDAQ: ENDO), an innovative medical device company focused on the development of minimally invasive technologies used by urologists and interventional radiologists for tissue and tumor ablation, today reported higher revenue, a 26 percent decline in operating loss, and narrower net loss for the third quarter ended September 30, 2008.

     Total revenues for the third quarter of 2008 were $7.6 million, compared to $7.3 million in the third quarter of 2007. Domestic probe sales, as well as the estimated number of domestic cryoablation procedures performed, in the third quarter and the first nine months of 2008 and 2007 are summarized in the following table:

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2008				2007				2008				2007
Estimated domestic cryoablation procedures			2,263				2,353				7,122				7,104
Number of cryoprobes sold:
Straight probes			8,660				9,957				28,017				29,852
Right-angle probes			2,084				1,564				6,058				4,637
Total			10,744				11,521				34,075				34,489

     Probe sales are reported in two categories: straight probes, which are typically, although not always, used in prostate procedures and right-angle probes, which are typically used in procedures other than prostate procedures.

     Gross margin in the third quarter of 2008 was 70.1 percent, compared to 70.4 percent in the third quarter of 2007. Operating expenses in the 2008 third quarter were $6.3 million, compared to $6.4 million in the 2007 third quarter. Included in the operating expenses for the 2008 third quarter was $792,000 of legal and related expenses in connection with the Company’s now-terminated obligation to advance the legal fees of its former officers in legal matters related to those individuals. During the same period, operating expenses included $906,000 of legal and accounting fees related to the Company’s evaluation of potential strategic opportunities. Also affecting operating expenses during the third quarter of 2008 was a $1.3 million reversal of stock compensation expense, resulting in a net negative expense of $616,000 during the period.

     Operating loss for the 2008 third-quarter declined 26 percent to $926,000 from a $1.2 million operating loss in the 2007 third quarter.

     Endocare interim CEO Terry Noonan said: “The importance of cryoablation, especially as a treatment for prostate cancer continues to broaden as evidenced by the American Urological Association (AUA) release of the official “best practice” document on cryoablation for prostate cancer, covering primary, salvage and focal cryoablation. The AUA release of these clinical guidelines is an acknowledgement of the important advances made in the technology of cryoablation as a minimally invasive treatment for prostate.

     Noonan continued, “Supported by strong clinical data, we will continue to increase awareness and training of physicians as well expanding the level of support to our existing physician customers.”