Echo total revenues increase to $447,000 for fiscal year 2011

Echo Therapeutics, Inc. (Nasdaq: ECTE), a company developing its needle-free Symphony® tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring system and its Prelude® SkinPrep System for transdermal drug delivery, today announced financial results for the year ended December 31, 2011.  Echo's Annual Report on Form 10-K is available through Echo's website at www.echotx.com.

2011 Corporate Highlights:

• Echo added key executives to its management team as part of the company's plan to accelerate the development and commercialization of Symphony and other new products contemplated in its growth strategy.
• Echo's common stock began trading on the Nasdaq Capital Market in June, providing more liquidity to its shareholders and increased visibility to the investment community over the short and long-term.
• Echo successfully completed two clinical trials of Symphony in patients with and without diabetes that showed that Symphony successfully monitors patient glucose levels and has the potential to be an important tool for the tracking and trending of glucose.  To date, Echo has completed eight positive pilot studies of Symphony with a combined average error rate, often referred to as mean absolute relative difference (MARD), of 12.4%.
• Echo announced multiple patents and trademark grants throughout the year that will provide its products with long-term market protection.  Echo has obtained 12 U.S. patents and 42 foreign patents, and has 39 patent applications pending in the U.S. and foreign countries.

"We made very tangible progress during 2011 and we achieved some very important milestones. We believe the clinical data from the most recent trials further demonstrates Symphony's significance and potential for the monitoring of glucose levels," commented Patrick T. Mooney, M.D., Chairman and Chief Executive Officer of Echo Therapeutics.  "Additionally, we raised significant capital through a series of private financings and warrant exercises that brought our year-end cash position to nearly $9 million.  With a strengthened and simplified balance sheet, and an experienced management team, Echo is focused on the continued, accelerated pace of product development finalization and clinical validation necessary for regulatory clearance of the Symphony tCGM System in both Europe and the U.S."

Fiscal Year 2011 Financial Results

For fiscal year 2011, the Company was principally involved with the product development and clinical studies of its Symphony tCGM System. Echo reported approximately $447,000 in total revenues during 2011 compared to $428,000 during 2010.  Operating expenses for 2011 of $8.7 million increased by approximately $3.4 million compared to 2010 reflecting our increased investment in product development and corporate structure.  The net loss for 2011 was $16.7 million, or ($0.49) per share, compared to a net loss of $4.3 million, or ($0.15) per share for 2010.  The Company reported a cash balance of approximately $9.0 million as of December 31, 2011.

2012 Development Outlook

"We believe that the significant accomplishments and progress made in 2011 has set the stage for an exciting and productive 2012.  Building on the positive momentum of the previous two Symphony studies, we anticipate positive results from our current critical care study in the near term," Dr. Mooney concluded. "This year we are focused on completing several key milestones that we believe will clear the path toward commercialization of Symphony and will significantly increase shareholder value."