Echo Therapeutics, Inc. (Nasdaq: ECTE) Provides an Update to Shareholders

PHILADELPHIA, Jan. 7, 2013 /PRNewswire/ -- Echo Therapeutics, Inc. (Nasdaq: ECTE), a company developing its needle-free Symphony(®) tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring system, today issued the following corporate update to its shareholders:

To Our Shareholders:

As we begin the new year, we are pleased to report that the last year was one of significant accomplishment and progress that has set the stage for a very exciting and productive 2013. In this letter, we would like to reflect on our achievements and, more importantly, look forward to the objectives we intend to achieve in the coming months.

2012 Business Review

Over the past year we achieved several major milestones:

    --  In 2012, Echo completed two clinical trials of the Symphony tCGM System
        in critically ill patients that showed that Symphony successfully
        monitored patient glucose levels and has the potential to be an
        important tool for the tracking and trending of glucose in the hospital
        setting.  To date, Echo has completed ten pilot studies of the Symphony
        tCGM System with a combined average error rate (MARD) of 12.0%.
    --  Echo added key executives to its management team as part of our plan to
        finalize development and accelerate the commercialization of the
        Symphony tCGM System and other products contemplated in our growth
        strategy.
    --  Echo's Operations management worked closely with the global electronics
        manufacturing and distribution provider, Benchmark Electronics, Inc., to
        provide the necessary tools and processes for the product launch of the
        Symphony tCGM System.
    --  At the 72(nd) Annual Scientific Sessions of the American Diabetes
        Association on June 8, 2012, Echo presented an expanded analysis of data
        collected from patients with either type 1 or type 2 diabetes during its
        clinical trial of Symphony.   Echo also presented at the 12(th) Annual
        Diabetes Technology Meeting on November 9, 2012.
    --  Echo announced that it obtained several patents throughout the year that
        provide our products with long-term market protection.  Echo holds eight
        U.S. patents and 71 foreign patents, and has over 25 pending patent
        applications in the U.S. and foreign countries.
    --  Three additional analysts initiated research on Echo in 20l2,
        contributing to improved market awareness.   Currently, six investment
        banks follow Echo:  Ascendiant Capital Markets, Feltl and Company,
        LifeTech Capital, Noble Financial Capital Markets, Northland Capital
        Markets, and Wunderlich Securities, Inc.

Upcoming Catalysts

Building on the strong foundation with which we finished 2012, Echo is focused on completing several key milestones during 2013 that will enable us to begin generating revenue.

    --  Echo expects to achieve International Standards Organization (IS0) 13485
        certification in the first quarter of 2013.  ISO 13485 is the globally
        recognized Quality System standard that prescribes consistent processes
        for the development, design and manufacturing of medical devices, and is
        considered a step towards securing product commercialization approval by
        European and other international regulatory agencies.
    --  Echo is preparing for a multi-center European regulatory trial of the
        Symphony tCGM System in critically ill patients and a subsequent
        Conformite Europeenne (CE) Technical File submission in the first half
        of 2013.  CE Marking would enable the commercial sale of Symphony in the
        EU and other countries that recognize the CE Mark.
    --  In anticipation of a review of and determination regarding its CE Mark
        application in the second half of 2013, Echo has begun significant
        commercial planning activities.  Echo is preparing for European launch
        in target markets by the end of the year.
    --  Echo is intensifying partnership discussions as Symphony nears
        commercialization.  The company is exploring a variety of partnership
        opportunities that exist in both the critical care and outpatient
        settings, and across numerous geographical areas.
    --  Echo expects to meet with the Food & Drug Administration (FDA) in early
        2013 to discuss the proposed pivotal clinical study during a Pre-PMA
        Submission meeting.   We plan to commence the pivotal clinical trial in
        the second half of 2013.  The safety and efficacy data obtained from the
        pivotal trial are expected to support a Premarket Approval application.
    --  Echo plans to increase its scientific communication via oral
        presentations, poster sessions, and exhibitions at major medical
        meetings in Europe and the U.S., to strengthen awareness in the key
        opinion leader community.
    --  Echo will provide continued communication with the investment community
        through upcoming investor conferences and regular updates on the
        company's progress.

Thank you for your investment in the continued success of our company. We look forward to keeping you informed of our progress throughout the year.

Sincerely,

Patrick T. Mooney, M.D.
Chairman and CEO

About Echo Therapeutics

Echo Therapeutics is developing the Symphony tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring system. Our target is patients who could benefit from glucose monitoring in the hospital setting, including critical care. Significant opportunity also exists for patients with diabetes to use Symphony in the outpatient setting. Echo is also developing its needle-free skin preparation component of Symphony, the Prelude(®) SkinPrep System, as a platform technology to enhance drug delivery of topical pharmaceuticals.

Cautionary Statement Regarding Forward Looking Statements

The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, risks related to regulatory approvals and the success of Echo's ongoing studies, including the safety and efficacy of Echo's Symphony tCGM System, the failure of future development and preliminary marketing efforts related to Echo's Symphony tCGM and Prelude SkinPrep Systems, Echo's ability to secure additional commercial partnering arrangements, risks and uncertainties relating to Echo's and its partners' ability to develop, market and sell diagnostic and transdermal drug delivery products based on its skin permeation platform technologies, including the Symphony tCGM and Prelude SkinPrep Systems, the availability of substantial additional equity or debt capital to support its research, development and product commercialization activities, and the success of its research, development, regulatory approval, marketing and distribution plans and strategies, including those plans and strategies related to its Symphony tCGM and Prelude SkinPrep Systems. These and other risks and uncertainties are identified and described in more detail in Echo's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2011, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. Echo undertakes no obligation to publicly update or revise any forward-looking statements.

For More Information:
Christine H. Olimpio
Director, Investor Relations and Corporate Communications
(215) 717-4104
colimpio@echotx.com

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SOURCE Echo Therapeutics, Inc.